Revision of Tax Audit Report- Circumstances in which it can be revised and How to revise it

The cases in which revision of tax audit report is done are often rare in real practice.    One should give due care and caution for the importance of the matter. Such an action by the auditor not only demonstrates the independence of the auditor to act with full freedom but also boosts the confidence of the users of the tax audit report and the person involved in the profession.

A revision of tax audit report gets to be distinctly vital as cases having reasons like mistakes apparent from the information in the report, revelation of facts existing at the date of the audit report which are recognized subsequently, etc. The reasons differ from one company to another depending upon the conditions and circumstances. It includes many conditions which may exist or cease to exist and Revision of Tax Audit Report may be required depending on the facts and conditions of the specific case involved.

The auditor can amend or revise the audit report till the results are adopted in the AGM (annual general meeting) in the case of companies. However, where an assesse isn’t required to adopt the books of accounts, the auditor can revise the tax audit report within an acceptable period depending upon the considerations and situations but not after issuance of the audit report for the accounts of the next accounting period.

Also Read- No Penalty where tax Audit report is delayed for bona fide reasons

In the case of revision of the tax audit report, the audit report must be given in the specified manner recommended by the Institute of Chartered Accountant of India in Standards on Auditing 560 (Revised) “Subsequent Events”.

In general, the Tax audit report U/s 44AB of the Income Tax act, should not be revised. Though, at times an auditor may be required to revise the audit report on basis such as:

1. Revision of accounts of a company after its adoption in the AGM (annual general meeting).
2. Amendment or Changes in law e.g., the retrospective amendment in law.
3. Change/Clarification in interpretation, e.g. CBDT’s circular, judgments, notification etc.
4. Or by any other reasons like software/system error requiring a change in a report previously uploaded.

In case, where an auditor is called upon to report on the accounts so revised, then he must cite in the revised report that the aforesaid report is a revised one and a reference should be made to the previous report also. The member is also required to mention the reasons for revising the audit report in such revised audit report. The e-filing portal permits uploading of such Revised Audit Report by the Chartered Accountant for the same PAN and Assessment Year.