Chartered accountant: role in audit, tax and compliance
A chartered accountant is an ICAI member qualified in accounting, audit and tax. Only practising CAs can do company statutory audits and income-tax audits.
Short answer
A chartered accountant (CA) is a member of the Institute of Chartered Accountants of India (ICAI), the statutory body under the Chartered Accountants Act, 1949. CAs are qualified in accounting, auditing, taxation and financial advisory work. Only practising chartered accountants can conduct statutory audits of companies and tax audits under the income-tax law.
- Professional body
- Institute of Chartered Accountants of India
- Law
- Chartered Accountants Act, 1949
- Exclusive work
- Company statutory audit; income-tax audit
- Certifies
- Many tax, FEMA and regulatory forms
What chartered accountants do
CAs provide a wide range of services to businesses, some of which only practising members can perform under the law. The most common services used by startups in their first few years are these.
- Statutory audit of companies under the Companies Act
- Tax audit and income-tax return filing
- GST returns, refunds and notice replies
- TDS compliance and returns
- Accounting, bookkeeping and financial statements
- Valuation certificates for FEMA pricing
- Certificates for foreign remittances and other regulatory forms
- Financial due diligence and advisory
Independence and limits
A company's statutory auditor must be independent. Section 144 of the Companies Act bars the auditor from providing certain services to the company, such as accounting and bookkeeping, internal audit and investment advisory, directly or through associated entities. Many startups therefore use one CA firm for statutory audit and another for accounting or tax work. CAs are bound by ICAI's code of ethics and can face disciplinary action for misconduct.
Why it matters for startups
A good CA is essential from incorporation, for setting up accounts, GST and TDS processes and the first audit. Choose a firm with startup experience, clarify which services are prohibited for your auditor, and check the CA's membership and practice status on ICAI's records. Agree the scope, fees and timelines in an engagement letter.
Related services
Sources
Written by the Refogo Editorial Team from the official sources above and checked on 2026-10-31. Laws, rates and due dates change, and authorities often extend deadlines, so confirm your own case with a qualified professional. This is general information, not legal or tax advice. Read our editorial policy or report an error to support@refogo.com.
Common questions
Is a CA required for a startup?
A practising CA must audit a company's accounts every year. For other work, such as accounting and tax filing, a CA is strongly advisable though not always legally required.
Can the statutory auditor also file my GST returns?
Tax compliance is not among the prohibited services for auditors, but accounting and bookkeeping are, so check section 144 before combining roles.
How do I verify a chartered accountant?
Use ICAI's member verification facility with the membership number.