Who can do tax audit in India?

Who conducts a tax audit? A chartered accountant or a firm of CAs conduct this audit. However, the tax audit limit rests at 60 audits per CA. In case of a firm, the tax audit limit is applicable to each of the firm’s partners.

How can I become a tax auditor in India?

Eligibility to become Auditor

  1. To become an auditor, the candidate must have a bachelor’s degree in Accounting. However, some employers prefer candidates with a relevant master’s degree in accounting or an MBA.
  2. Candidates can also take up a course in computer accounting software such as Tally or other related diplomas.

Can a CMA do tax audit?

CA /CMAs are authorized to conduct audit of GST under section 42(4) of the Model act. Every tax payer exceeding the prescribed threshold limit will be subject to such audit. Already CA/CMAs are recognized to undertake VAT audit under various State VAT Act, however for service providers there is no such requirement.

Who are required to get their accounts audited?

Audit Requirements

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Tax Payer Compulsory Audit required when
A person carrying on Business If total sales, turnover or gross receipts are more than Rs. 1 crore
A person carrying on Profession If gross receipts are more than Rs. 50 lakh

How do I get a tax audit?

Tax Audit Report to be filed Electronically by the chartered Accountant to the Income Tax Department. After filing the Income Tax report by the Chartered Accountant, the taxpayer needs to approve the submitted reports using an E-filing account with the Income Tax Department.

IS Auditor a good job?

It’s a job in high demand.

As long as there is business to be done, there will be a job for auditors. Experts say the number of jobs for accountants and auditors will grow 11 percent from 2014 to 2024, faster than the average for many other occupations.

Is CA and auditor are same?

In India, Institute of Chartered Accountants of India offers the CA program. Those who have done IRCA certified auditor-training program can as well become auditors. … Most of the auditors carry out private practice, as it is more lucrative.

Is CMA easier than CA?

Is CMA easier than CA? CMA is a bit easier than ca when compared to CA Vs CMA and here are the reasons: … The duration of CMA USA is 3 -4 years which is considered less when compared to CA which is expected to take at least 5 years. Students are free to choose CMA exam dates where it’s not possible in the case of CA.

Is CA or CMA better?

Going through the difference between CA vs CMA, you must have gotten a complete idea of the courses. According to the experts, in the current market CA has a lot of scope and demand. But if you are planning for the future say after 10-15 years then you can opt for CMA which is expected to grow with the passage of time.

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How many audits can CMA do?

CMAs are allowed to do financial Audit, Internal Audit, GST Audit, Excise Audit, VAT audit, stock audit, etc. as well as financial audit of all US-Securities Exchange Commission listed companies.

Is tax audit compulsory for companies?

A tax audit is mandated on all companies, limited liability partnerships (LLPs), and individuals whose turnover crosses a particular threshold limit. Taxpayers who get their accounts audited under any other law do not have to get their accounts audited again for a tax audit.

What is turnover limit for audit?

Update: The threshold limit of Rs 1 crore for a tax audit has been increased to Rs 5 crore with effect from AY 2020-21 (FY 2019-20) if the taxpayer’s cash receipts are limited to 5% of the gross receipts or turnover, and if the taxpayer’s cash payments are limited to 5% of the aggregate payments.

Which audit is compulsory by law?

Statutory Audit means an audit which is compulsory by any statute.

How many audits can a CA do?

The maximum number of tax audits that can be undertaken by a Chartered Accountant is limited to 60. In case of a firm the restriction on tax audit limit will be applicable for each of the partners.

What documents are required for tax audit?


  • Appointment Letter defining scope. …
  • Management representation letter. …
  • List of related parties & transactions. …
  • Trial Balance. …
  • Financial statements duly signed by the owners. …
  • Notes on accounts and Disclosure.


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What is the limit for audited accounts?

Context: “As per section 44AB of the Income Tax Act,1961, any person carrying the business is required to get his books of accounts audited if the gross receipts/turnover exceeds ₹1 crore during the year (In case of presumptive taxation u/s 44AD, the threshold limit is ₹2 crore).

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