Internal auditor cannot undertake GST audit of the same entity: ICAI

An internal auditor of an enterprise cannot undertake GST audit of the same entity, the CA Institute has said. This clarification comes in the wake of queries raised by stakeholders as to whether an internal auditor of an entity can also undertake GST audit of same entity under the Central Goods and Services Act 2017. Upon consideration at its recent Council meeting on September 26 and 27, the CA Institute has 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 law) will also be applicable to GST audit (under the Central Goods and Services Tax Act 2017). It may be recalled that the CA Institute’s central council had in its 281st meeting on October 3-5, 2008 decided that internal auditor of an assessee, whether working with the organisation or independently practising Chartered Accountant being an individual or a CA firm cannot be appointed as his tax auditor (under income tax law). Srivats.kr@thehindu.co.in