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TMI BlogEFFECTIVE HANDLING OF AUDITX X X X Extracts X X X X X X X X Extracts X X X X ..... EFFECTIVE HANDLING OF AUDIT X X X X Extracts X X X X X X X X Extracts X X X X ..... lowing points for handling of the audit - a) The audited financial statements, directors reports, cost audit report, Income tax audit reports, and the notes to accounts may be asked to get an idea as to the financial position and background of enterprise. b) Assessee should not refuse to produce books and records as this could lead to penal action going beyond limitation period citing suppressio ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... n. c) The advance intimation of same is generally given by department. The written confirmation of timeline of audit is also given. d) The responsible team should be formed in office to answer to the queries of audit team. e) The access to books and records may be allowed only during office hours. f) No books should be allowed to be removed from premises. If they seek to take records, it shoul ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... d be done under a written request and acknowledgement. g) Documents should be furnished only for the period under audit. h) The delivery of books and records to them should be acknowledged by departmental officers. i) The staff of concern may avoid staying beyond office hours so as to avoid possible harassment. j) When audit team fails to understand the explanation to their his query, it may b ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e asked to give their views in writing. k) No SCN can be issued or demand raised nor assessment can be made during audit. l) No summons can be issued during audit. m) The assessee can make his views known to the audit team in advance prior to raising audit objections. n) The audit team can only make factual observations and should not draw conclusion on points of law. o) After audit is over, ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... auditor may be discouraged from coming to auditee's premises. p) Questioning for long hours under stress and duress should be brought to the notice of higher authorities. q) Trade formulas and secrets should be given only on written request from auditors. r) Assessees should not panic, and react blindly by complying with the departmental officers instructions in such a situation. s) The audite ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e could refer the matters to a professional, and seek advice, when the audit team is raising a number of issues. In order to verify claims made by team. t) When a number of records are continuously asked by audit team, it is better to get an internal review of records done so that it knows where it stands as far as compliances are concerned. = = = = = = = = = = = Reply By SHIVKUMAR SHARMA as = ..... X X X X Extracts X X X X X X X X Extracts X X X X .....
Sir I want to know What is the maximum period of Audit. Whether Audit party can ask more than 5 Years of records for audit.
Shivkumar sharma
Dated: 4-12-2012 X X X X Extracts X X X X X X X X Extracts X X X X
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