Quick Answer: Is Statutory Audit Compulsory For LLP?

What is difference between tax audit and statutory audit?

Statutory Audit is applicable to all the Companies registered under Companies Act 2013 and erstwhile Companies Acts.

Tax Audit is applicable on all Companies, LLP’s, Partnership Firms as well as Individuals or Professionals whose turnover or Gross Receipts crosses the threshold limit..

What is the difference between internal and external audit?

Internal auditors are company employees, while external auditors work for an outside audit firm. … Internal auditors will examine issues related to company business practices and risks, while external auditors examine the financial records and issue an opinion regarding the financial statements of the company.

What is the meaning of statutory audit?

A statutory audit is a legally required review of the accuracy of a company’s or government’s financial statements and records. An audit is an examination of records held by an organization, business, government entity, or individual, which involves the analysis of financial records or other areas.

Which audit is not a statutory requirement?

The non-statutory audit is the audit of financial statements that are not required by law. It is different from the statutory audit that the entity needs to engage with an audit firm to perform its review in financial statements.

What is the difference between statutory audit and external audit?

Statutory audit is an external audit that is conducted by an audit firm or individual external to the organisation. … One of the key differences is that statutory auditors report to the shareholders of the company, whereas internal auditors report to management of the Company.

How do I start a statutory audit?

1) First you examine Documentary Evidences regarding appointment/reappointment of an Auditor. 2) Examine Last Year’s copy of Audited Balance sheet, profit & loss account , schedules, notes on accounts along with 3CA/3CB, 3CD & Audit Report. 3) Carefully Examine the internal control system of the company.

What are the 3 types of audits?

What Is an Audit?There are three main types of audits: external audits, internal audits, and Internal Revenue Service (IRS) audits.External audits are commonly performed by Certified Public Accounting (CPA) firms and result in an auditor’s opinion which is included in the audit report.More items…•

What is the turnover limit for statutory audit?

The Act states that if the turnover of any enterprise is more than 1 crore, and in case of professionals if the value of services is more than Rs. 50 lacs then they have to get their books of accounts audited by a Chartered Accountant.

What is the difference between statutory and non statutory audit?

While statutory audits are primarily concerned with financial activities, non-statutory audits are not limited to financial reporting. A non-statutory audit can be conducted for any function of an organization. … PKF Sejong provides independent audit assurance that is tailored to meet your auditing requirements.

Who is eligible for statutory audit?

Ans: To be eligible as a statutory auditor, the person must be a Chartered Accountant, i.e. a member of the ICAI. In case of a firm, the majority of its members must be chartered accountants in their own right. Then the firm can be eligible to be in charge of a statutory audit of a company.

What is the due date for statutory audit?

Due date for Statutory Audit report and Income Tax Return filing: 30.11. 2020. Where statutory Audit is not required the due date for Income tax return filing for FY 2019-20 is 30.11. 2020 – As extended.