How to find a Tax Auditor for conducting Income Tax Audits?
What is the best way to find a Tax auditor for conduting tax audits?
What are the qualitites one must verify before appointing a Chartered Accountant for Income Tax Audit under Section 44AB?
Should one consider cost while select Tax Auditor?
An independent auditor like me who is not a chartered accountant and takes signature from other chartered accountants, what should i make sure before selecting a chartered accountant to conduct tax audits for my clients?
The different methods to find Chartered Accountant or any other service provider are:
- Database with the institute governing professionals
- Artiles or knowledge sharing portals
You can select any service provider from classifieds or from any other medium where the data of these service providers is stored.
The things to watch before contacting a chartered accountant are:
- Verify whether he competent to conduct audits, only a full time practicing chartered accountant can sign the financial statements.
- Verify whether Chartered Accountant is following the ethics guidelines issued by Institute of Chartered Accountants of India (ICAI).
- Never select a chartered accountant if his website appeares in google search, if you search keywords like Chartered Accountants in Bangalore etc. Because the website is SEO optimized and institute does not allow any kind of advertising. However SEO is allowed but keywords which amount to advertisement are not allowed.
- You can verify the details of a Chartered Accountant from ICAI website.
Regarding your question of whether cost should be considered, i would say select the auditor based on quality and not cost.
They are consultants, a bad advice can damage the business. Cost should not be a major deciding factor.
Whether you appoint a Chartered Accountant or your client, rules are same.
To add on What Pulkit has mentioned. The client is always under a fiction of choice or a chance.
With changing laws & regulations, it becomes quite important one should get updated with events across the environment, however most of CA's fail on this due to their limited capacity to balance work and continuing professional eduction.
I suggest the following in order before a CA is selected.
a. Client base of the Chartered Accountant, what kind of industry is the CA taking care of, what exposure does the CA have on those. Depth of understanding on client business.
b. Technical knowledge, now most of have an opinion that whatever the CA says should be correct, but in fact in most cases CA is wrong due to changes in law or regulations or due to limited capacity. An error by CA will cost client a good amount by way of settlement or a penalty. Cross check what CA says from circle of friends, go with options when you approach CA for doubts and discuss which would work best and not the one CA will suggest.
c. CA's Knowledge is best known by the way he speaks on the subjects like economy, industry trend, pratical difficulties in Laws and compliances. The CA who speaks to the subject is either too educated or least knowledgeable. There is no hindrances to share knowledge. Knowledge is like a ocean, sharing it will not reduce the flow.
d. CPE Attendance, if the CA is making a point to finish the required hours in a streach means, he is just complying, but the CPE Hours are spread across, signifies that CA is on continous knowledge hunt.
e. Quality aspect is what most of them lack in todays scenario, however with laws becoming stringent, the laws will make away a path to those who are a praticing CA and a CA in pratice.
Thanks for the wonderful reply. I have some doubts.
As you told that CPE attendance and Quality of services should be considered.
How do we check CPE attendace, is this available online for public?
How do we verify the quality of services without availing the services?
Generally the trend is better the service more the fees. How can we rate the services, because law is same and will not depending on which chartered accountant we select?
Yes Law is same but INTERPRITITIONS are different. Attitude matters a lot, positive or negative attitude makes a difference.
Chartered Accountants are not lawyers, the services are not only limited to compliances but CA's are also good advicers, consultants and business doctors.
How do we differentiate service quality in Insurance or Banking sector. Premium or Rates are not the only factors to choose a perticular service provider. Similarly services by a CA should be analysed from all dimensions.