ICAI Sets 60-Audit Cap for Individual Chartered Accountants, Effective April 2026

The Institute of Chartered Accountants of India (ICAI) has announced that, starting from April 1, 2026, individual chartered accountants will be restricted to performing a maximum of 60 tax audits per financial year. This move comes as part of ICAI’s ongoing effort to enhance quality control and curb malpractices in tax auditing.

According to ICAI President Charanjot Singh Nanda, while the overall system already permits each chartered accountant to conduct up to 60 tax audits, the restriction will now be applied uniformly to audits signed both in an individual capacity and as a partner in a firm. Under the new guidelines, even if a partner in a multi-partner firm is involved in additional audits—for instance, when partners audit one another—the aggregate limit of 60 tax audits per individual will apply. This means that although an audit firm may conduct up to 240 audits through its partners collectively, each partner’s individual contribution remains capped.

Nanda emphasized that the decision aims not only to streamline audit practices but also to reinforce the integrity of the auditing process. “With the UDIN system in place, we are able to exercise complete oversight on each audit. This step is crucial for reducing malpractices and preventing incidents such as forged signatures,” he stated during a briefing in New Delhi.

The UDIN (Unique Document Identification Number) system, which generates a unique number for every document attested by a practising chartered accountant, has already been pivotal in strengthening accountability within the profession. The new cap is seen as an additional measure to ensure that audit quality is not compromised by excessive workloads.

Alongside this major announcement, ICAI also extended the deadline for submitting public comments on the draft overseas networking guidelines for domestic CA firms until July 16. The guidelines are part of the regulatory body’s broader efforts to help domestic firms build robust global networks and better compete internationally.

With over four lakh members, ICAI continues to implement reforms aimed at maintaining high professional standards and adapting to the evolving needs of the financial and regulatory landscapes. The new cap on individual tax audits underscores the organization’s commitment to quality and ethical auditing practices in an increasingly complex business environment.