We as a chartered accountants are committed to do the audit assignment keeping all the aspects in mind ,that is all accounting policies as well as all the provisions of Income Tax Act like sections 40(A)3, 269SS, 269T etc etc. and at the same time we have to procure work also for our survival, during the course of audit if we demanded evidences regarding the entries which we thought fishy and the client don’t want to disclose then we are left with only two options, one is to complete the audit without those requirements and gave the clean chit otherwise loose the audit as one of our fellow brother sitting in office adjoining to us is ready to complete audit without those requirements. I want to ask fellow members, how many members have ever sign a qualified report or the percentage of qualified reports to the total reports signed by him.
It means we are given both the responsibility to procure work as well as to do the audit work with due diligence. For procuring work our client should be happy from us otherwise he don’t want our services, one more issue is the payment of fee as the fees plays a major role in procuring audits only because of this fee structure people are forced to do more than 45 audits as prescribed by our Institute.
This is a serious problem it is hampering the status and goodwill of our esteemed profession. If anybody has any suggestion to tackle this problem please share.
I have one solution which I want to share in this forum: If the audits (tax audits) are allotted by the institute as much of the data of client is with I.T deptt. and the assessee who is new assessee means who would fall in the category of the Tax audit for the first time is required file application for allotment of auditor and register his pan with Institute well in time with the requisite details of Turnover, PAN address etc from which institute should allot the audit to any ca of his local vicinity or from nearby place the fee structure should be fixed keeping in view some criteria like turnover or total of balance sheet . the total no of audits allotted to one firm can never me more than 45 audits per member. The Firms constitution is recorded in ICAI so firm should be allotted audits as per no of partners and partners are strictly bound to sign there share of audit reports. The allotment of audits of big concern be according to the turnover of audit firms.
There should be rotation of auditor every year and no body is fixed auditor for a given concern.
In this manner the audits will be conducted in independant, impartial and unbiased atmosphere.
If members do not agree with my suggestion pls let me know with there valuable suggestion, and those who agrees with my suggestion should show the way to implement these suggestions.
Regards
CA Gaurav Jain
+9215515019
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