What happen when Failure to get accounts audited Section 271B of the Income Tax Act mandates a penalty for failure to comply with the audit requirements under Section 44AB. However, Section 273B provides relief by allowing the penalty to be waived if the assessee can prove a reasonable cause for such failure. While Section 271B …
CBDT has issued revised instructions on the SOP for managing internal audit objections. CBDT has issued Instruction No. 2/2024, which introduces an updated Standard Operating Procedure (SOP) for managing internal audit objections. Revised instructions aim to ensure that the internal audit process remains relevant in the evolving faceless tax administration environment by leveraging digital …
All about the Provision of Presumptive Taxation Scheme in India Presumptive taxation allows small taxpayers to declare income at a prescribed rate without the burden of maintaining detailed books of accounts and undergoing audits. This scheme simplifies tax compliance for eligible businesses and professionals under sections 44AD, 44AE, and 44ADA of the Income Tax Act. …
Tax audit applicability under income tax law DOCUMENTATION OF AUDIT & WORKING PAPER FOR AUDIT The skill of an accountant can always be ascertained by an inspection of his working papers. Documentation Standard on Auditing (SA) 200, “Basic Principles Governing an Audit” (Paragraph 11), states, “The auditor should document matters which are important in providing …
NFRA has imposed a significant penalty INR 2.5 crore The National Financial Reporting Authority (NFRA) has imposed a significant penalty on M/s Shridhar & Associates and CA Ajay Vastani, totaling ₹2.5 crore, due to various audit violations during their audit of Reliance Commercial Finance Limited (RCFL) for the fiscal year 2018-19. This decision highlights the …
How Enhanced Transparency & Compliance Can Be Achieved by using Audit Trail (Edit Log) An audit trail, also known as an edit log or audit log, is a chronological record of activities related to a specific process or system. Implementing an audit trail can lead to increased compliance and transparency in various ways: An audit …
Financial Forensics and Forensic Audit Techniques Financial forensics and forensic audit techniques are specialized fields within accounting and finance that involve investigating financial transactions, statements, and records to uncover fraud, embezzlement, or other financial misconduct. Here’s an overview of these concepts and some common techniques used in forensic audits: Definition: Financial Forensics: This involves the …
Overview about the Forensic Audit Introduction of Forensic Audit: Definition: A forensic audit is a specialized financial investigation aimed at gathering evidence for legal proceedings. Purpose: It covers a wide range of activities, including investigating embezzlement, fraud, and other financial crimes, but also non-fraudulent situations like business closures and divorces Process: Similar to a traditional …
Myth vs Facts – Decoding Tax Audit u/s 44AB(e):44AD Nature of Business or Profession When audit is Mandatory? Business loss In case of loss from carrying on of business and not opting for presumptive taxation scheme Total sales, turnover or gross receipts exceed Rs 1 Crore If taxpayer’s total income exceeds basic threshold limit but he …
AI (Artificial Intelligence) may help CA’s Deliver High Quality Audits Current scenario of Chartered Accountants Audit Services Now a days Chartered Accountants are faces challenges like poor work life balance; less time for business expansion; process inefficiency, limited availability of skilled resources and manual management leading to higher operational cost; poor traceability & visibility of …