ICAI’s New Tax Audit Limit: Max 60 Audits Per Partner from FY 2026–27

The Institute of Chartered Accountants of India (ICAI) has set a new cap: starting FY 2026–27, each partner can sign no more than 60 tax audits per fiscal year, whether individually or as part of a firm. This marks a significant shift toward improving audit quality and reducing workload concentration.

1. What’s Changing?

• 🗓 Effective from FY 2026–27 (AY 2027–28)
  Each partner’s total signing count—across solo and firm assignments—will be capped at 60 tax audits/year :contentReference[oaicite:1]{index=1}.
• Proxy signing is now banned. Partners will no longer be allowed to sign audits on behalf of others :contentReference[oaicite:2]{index=2}.

2. Why This Reform?

• Promotes fairness: Prevents senior partners from hoarding audit assignments under junior signatures :contentReference[oaicite:3]{index=3}.
• Improves audit quality: Ensures better accountability and attention to each audit :contentReference[oaicite:4]{index=4}.
• Broadens opportunity: Gives junior and mid-level partners a chance to build credibility :contentReference[oaicite:5]{index=5}.

3. Impacted Stakeholders

Stakeholder	Change
Individual Partners	Must track and ensure they don’t exceed the 60-audit cap.
CA Firms	Need to redistribute audits strategically to comply.
Junior Partners	Will gain more responsibility and career growth opportunities.

4. What’s Not Included

• Audits mandated under specific sections of the Income Tax Act (e.g., certain statutory audits) are not counted toward the 60-audit cap :contentReference[oaicite:6]{index=6}.

5. How Firms Should Respond

1. Audit Tracking: Implement internal trackers to monitor audit count per partner.
2. Workload Planning: Distribute audits evenly among partners.
3. Grow Capacity: Promote partners or hire to cover audit volume.
4. Ensure Compliance: Avoid proxy signings and document each partner’s signed reports.

Final Takeaway

ICAI’s new rule marks a major shift toward quality-driven, accountable, and distributed tax audit practices. Firms must adapt with better systems, and partners—including juniors—will get fairer access and recognition.

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