ICAI

Internal Auditor cannot undertake GST Audit of same entity simultaneously- ICAI Clarification

Internal Auditor cannot undertake GST Audit of the same entity simultaneously- ICAI. Bar on internal auditor regarding tax audit also apply to GST Audit 

The ICAI had received the following query from the members and other stakeholders as to:

Whether an internal auditor of an entity can also undertake GST Audit of the same entity as required under the Central Goods and Service Act, 2017?

With respect to a similar question regarding Tax Audit u/s 44AB of the Income Tax Act, 1961, the ICAI in 2008 had held that internal auditor of an assesee, whether working with the organization or independently practising Chartered Accountant being an individual chartered accountant or a firm of chartered accountants, cannot be appointed as his Tax auditor.

The Council of the Institute in its 378th Meeting held on 26th and 27th September, 2018, noting its earlier decision and decided that based on the conflict in roles as statutory and internal auditor simultaneously, the bar on internal auditor of an entity to accept tax audit (under Income Tax Act, 1961) will also be applicable to GST Audit (under the Central Goods and Service Act, 2017).

Accordingly, it was clarified that an Internal Auditor of an entity cannot undertake GST Audit of the same entity

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