Institute of Chartered Accountants of India (ICAI) has issued Technical Guide on Audit of Charitable Institutions under Section 12A of the Income-tax Act, 1961.
One of the mandatory conditions for eligibility of exemption for charitable and religious institutions under Section 11 and 12, as prescribed under Section 12A(b) is that where total income of the trust or institution as computed under the Act without giving effect to the provisions of section 11 and 12 exceeds the maximum amount which is not chargeable to income tax, the accounts of such trust or institution should have been audited and audit report is furnished.
The object of “Technical Guide on Audit of Charitable Institutions under Section 12A of the Income-tax Act, 1961” issued by Institute of Chartered Accountants of India is to provide guidance to the auditors for conduct of audit. This Technical Guide will also be useful for those in charge of governance of charitable institutions for discharging their respective responsibilities towards audit of accounts of charitable institutions under section 12A(1)(b)(ii) of the Act This Technical Guide intends to;
(i) assist in understanding the respective responsibilities of the institution and the auditor.
(ii) guide the auditor as to the nature and scope of information to be obtained by him from the institution to enable him to conduct the audit.
(iii) provide guidance on the verification procedures to be adopted by the auditor for giving the audit report and the necessary information in the annexure thereto.
(iv) to give an idea about the various aspects including issues relating to the law of taxation of public charitable institutions and
(v) explain the circumstances where a disclosure or qualification or disclaimer may be required from the auditor while giving his audit report.
(vi) to provide guidance in ensuring compliance with the Accounting Standards issued, prescribed and made mandatory by the Institute of Chartered Auditors of India.
(vii) to facilitate compliance of Auditing and Assurance Standards issued, prescribed and made mandatory by the Institute of Chartered Auditors of India
READ / DOWNLOAD TECHNICAL GUIDE:
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