Last-Minute Tax Audits | Evaluating the Auditor’s Options for Safeguarding

In a situation where the assessee approaches a CA on the last day for filing the tax audit report, in accordance with section 44AB of the Income Tax Act, 1961 by giving the consent to include a “Disclaimer of Opinion” in the audit report, for timing constraint to conduct the tax audit.

In such scenarios the dilemma for the tax auditor arises i.e. whether he can issue an audit report with a “Disclaimer of Opinion” under the Standards of auditing. Also whether a tax audit report in Form 3CA/3CB containing a disclaimer of opinion as to the financial statements and statement of particulars in Form 3CD satisfy the requirements of section 44AB?

This story explores whether declining such audits can serve as a safeguard for auditors in last-minute tax audit scenarios, or issuing a disclaimer of opinion as a final recourse is a more practical approach.

Click Here To Read The Full Story