The Institute of Chartered Accountants of India (ICAI) has clarified that an internal auditor in a company cannot undertake GST audit of the same entity, citing the issue of conflict of interest.
"The (CA Institute) Council 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 Act, 1961) will also be applicable to GST Audit (under the Central Goods and Service Act, 2017)," The ICAI said. "Accordingly, it is clarified that an internal auditor of an entity cannot undertake GST audit of the same entity."
The clarification came after the Institute received enquiries from the members at large and other
stakeholders whether an internal auditor of an entity can also undertake GST Audit of the same entity as required under the Central Goods and Service Act, 2017.
"The (CA Institute) Council 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 Act, 1961) will also be applicable to GST Audit (under the Central Goods and Service Act, 2017)," The ICAI said. "Accordingly, it is clarified that an internal auditor of an entity cannot undertake GST audit of the same entity."
The clarification came after the Institute received enquiries from the members at large and other
stakeholders whether an internal auditor of an entity can also undertake GST Audit of the same entity as required under the Central Goods and Service Act, 2017.