Can tax audit be done without statutory audit?

Is it necessary to appoint statutory auditors as tax auditors? Section 44AB does not specify that only the statutory auditor appointed under the Companies Act should perform the tax audit. Therefore the tax audit can, be conducted either by the statutory auditor or by any other CA in practice.

Is tax audit mandatory for all companies?

A tax audit is mandated on all companies, limited liability partnerships (LLPs), and individuals whose turnover crosses a particular threshold limit. Taxpayers who get their accounts audited under any other law do not have to get their accounts audited again for a tax audit.

Can tax audit and statutory auditor be same?

Yes. Section 44AB of the Income-Tax Act, 1961, stipulates that only Chartered Accountants should perform the tax audit. This section does not stipulate that only the statutory auditor appointed under the Companies Act or other similar Statute should perform the tax audit.

What is statutory audit requirement?

A statutory audit is a legally required review of the accuracy of a company’s or government’s financial statements and records. Firms that are subject to audits include public companies, banks, brokerage and investment firms, and insurance companies.

Does a small company need an audit?

By law, all UK companies require an audit. An exemption from audit is available to small companies. A company will be small if it achieves any two of the following thresholds: Turnover: £10.2 million or below.

What’s the difference between statutory and non-statutory audit?

Statutory audit is authorised and governed by law or a statute; whereas the audit got done voluntarily and without any legal or statutory force is non-statutory. Examples of non-statutory audits are the audits of partnership firms and individual proprietary concerns.

Do private companies need to be audited?

Both private and public companies are subject to generally accepted accounting principles (GAAP), although for different reasons. The SEC requires publicly traded companies to provide GAAP-compliant audited financial statements. However, many private companies don’t issue audited financial statements.

What is the difference between statutory and tax 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.

When should statutory audit be completed?

Statutory Audit should be completed within 6 months from the close of the Financial Year but before conducting the Annual General Meeting to present the Audited Accounts to the Shareholders.

Who can audit a company’s accounts?

Companies registered under The Companies Act, 1956 need to get their accounts audited by a qualified chartered accountant, only after the preparation of the financial statements. The statutory auditor presents his report, in which he expresses his opinion on the true and fair view of the final accounts.

What are the different kinds of audits?

There are various kinds of audit being conducted under different laws such as statutory audit, internal audit, cost audit, stock audit etc. Two of the important kinds of Audit which often create confusion among Business owners are Statutory Audit and Tax Audit. A statutory audit is an audit, which is made mandatory under The Companies Act 2013.