Scope of Manual
Auditing is an independent, objective assurance and consulting activity designed to add value and improve an organization’s operation. It helps an organization accomplish its objective by bringing a systemic, disciplined approach to evaluate and improve the effectiveness of risk management, control and governance process. Purpose of this manual is to outline broadly, the principles, policies, methodologies and modalities of audits to be conducted by Audit Parties with reference to the Income Tax Act, 1961
(Act), Rules made thereunder and the Circulars and Instructions issued by the CBDT. Guidelines provided herein are intended to ensure that the audit is carried out in an objective, uniform, efficient and comprehensive manner adhering to stipulated principles and policies. The manual covers subjects that are related to principles, policies and issues that pertain to conduct of audit with reference to the Act, but it does not deal with legal interpretations and judicial rulings.
The manual does not contain solutions to all the issues that may arise in the day to day audit work. The Audit Party has to apply its mind keeping the spirit of the principles, policies outlined in the manual and facts of each case. The manual has incorporated the workflow related to audit on ITBA.
Subsequent changes in the Act and the Rules made there under, administrative policies and procedures have to be kept in mind while conducting audit.