What are the requirements for a statutory audit?

The accounts of a Limited Liability Partnership (LLP) must be audited if it has an annual turnover of Rs. 40 lakhs or more or Rs. 25 lakhs or more capital contribution. Tax audit on the other hand is required for Proprietorships and Partnership Firms that have cross a certain threshold of sales.

Where the statutory audit is applicable?

1. For LLP: Statutory audit is applicable if turnover in any financial year exceeds Rs. 40 Lakhs or its contribution exceeds Rs. 25 Lakhs.

What is the procedure of statutory audit?

What Is The Process Of A Statutory Audit In India?

1. Assets. The auditor should physically visit and verify the fixed assets.
2. Inventories. The auditor must physically verify the inventories of the company.
3. Loans.
4. Deposits.
5. Statutory Dues.
6. Profit and Loss.
7. Other Dues and Payments.
8. Loan Usage.

Is statutory audit compulsory?

Statutory Audit as the name suggests is a compulsory audit for all companies. Every entity which is registered under the Companies Act, as a Private Limited or a Public Limited company has to get its books of accounts audited every year.

Which type of audit is statutory audit?

Types of Statutory Audit Cost Audit as prescribed under Section 148 of the Companies Act, 2013. Secretarial audit as prescribed under Section 208 of the Companies Act, 2013. Tax Audit as prescribed under Section 44AB of the Income Tax Act, 1961. GST Audit as prescribed under 35(5) of the GST Act, 2017.

Is statutory audit mandatory in India?

India is unique among the big economies of the world in statutorily mandating compulsory audit for all companies, irrespective of their size and characteristics. Even in India, income tax audit is now not compulsory where the turnover is Rs. 10 crore or less provided not more than 5\% of the transactions are in cash.

What is statutory audit and how to conduct it?

Statutory audit is one of the main types of audits, required legally to review the accuracy of a company or government’s financial accounts. It is conducted to gather different information so that the auditor can give his opinion on the true and fair view of the company’s financial position as on the balance sheet

Are independent auditors employees of the company?

The independent auditors are not employees except may be in the case of internal audit. All audits, whether statutory or voluntary, are not conducted by the Chartered Accountants. Large number of statutory audits are conducted by Cost Accountants.

What is applicability of audit to any organization?

Applicability of audit to any organization doesn’t state that it is an inherent sign of doing wrong acts. Instead, it is the way that helps in preventing such activities. E.g., like misappropriation of funds by ensuring continuous examination of data, which may be in the scope of other types of audits.

Is the cost audit conducted under Section 148 of Companies Act 2013?

And while reckoning the experience as statutory auditor, the cost audit conducted under section 148 of the Companies Act, 2013 is not considered as statutory audit. Who are lawfully eligible for appointment as Internal Auditors in Public Companies under section 138 of the Companies Act, 2013