In order to maintain the quality of tax audit to be conducted by our members. ICAI in the year 1989 imposed a limit on audits to be conducted by a practicing member in any financial year. At that time the limit was specified at 30. The process of fixation of ceiling on the number of tax audits conducted by a member got triggered from a letter dated 19th January, 1988 received by the ICAI from the Officer on Special duty, Central Board of Direct Taxes thereby requesting the ICAI to send comments on the suggestion that there should, be a restriction on the maximum number of audits conducted by a chartered accountant.
Considering the suggestion of the Department and also the fact that a human being can perform a limited amount of work qualitatively, this limit was imposed by ICAI. Thereafter, due to computerization of accounts and various other relevant factors the ICAI decided to enhance the limit to 45 audits per Chartered Accountant.
Extract from the reply of ICAI dated 29.01.2014 to CBDT in respect of Information Provided by Tax Advocate Shri B.S.K Rao and Shri Srikrishna to CBDT
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