Chapter VII · Reserved to chartered accountants
Audit and assurance
Audit and attest work is reserved by law to chartered accountants. Under the guidelines of the Institute of Chartered Accountants of India, it is described here for information only, for visitors who ask for it.
What the work covers
- Statutory audit of companies under the Companies Act, 2013
- Audit of limited liability partnerships where the LLP Rules require it
- Tax audit under the Income-tax Act, 2025
- Certificates and attest reports required under other statutes
- Audit of trusts and societies where the governing law requires one
The law it sits in
| Law | Provision | What it provides |
|---|---|---|
| Companies Act, 2013 | ss. 139–148 | Appointment, rotation, powers and duties of auditors; the auditor's report |
| Companies (Auditor's Report) Order, 2020 | para 3 | Matters the auditor reports on for companies within its scope |
| LLP Rules, 2009 | r. 24(8) | Audit of accounts where turnover exceeds ₹40 lakh or contribution exceeds ₹25 lakh |
| Income-tax Act, 2025 | s. 63 | Tax audit (formerly s. 44AB of the 1961 Act) |
What an audit is, and is not
A statutory audit is an independent examination of financial statements, ending in an opinion on whether they give a true and fair view. It is carried out under the Standards on Auditing issued by the Institute of Chartered Accountants of India.
The auditor is appointed by the members of a company, not by its management, and reports to them. Independence rules in the Companies Act, 2013 restrict the other services an auditor may provide to the same company (s. 144).
Tax audit under the new Act
From 1 April 2026 the tax audit requirement sits in section 63 of the Income-tax Act, 2025. Audits for the financial year 2025-26 are still reported under the 1961 Act in the forms that applied to it; the consolidated report under the new rules applies to later years.
The firm’s addresses and the request form are on the offices and contact pages.
Related notes
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