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Statutory/Tax Audit

Tax Audit

In case the turnover of the taxpayer (irrespective of its category) is equal to or more than Rs. 1 Crore from the business or Rs. 50 Lac from the income from profession then as per The Income Tax Act, 1961 an audit known as Tax Audit by a practicing-chartered accountant (CA) is required to be done under section 44AB. The tax audit report must be filed online at the income tax portal before 30th September of the assessment year.

Statutory Audit

Statutory Audit is an audit which is prescribed by the different statute like Reserve Bank of India, Income Tax, Companies Act, etc. A Chartered Accountant need to conduct many audits as per the different statute requirement.
Statutory Audit of banks is mandatory. Statutory Auditors are appointed by RBI in association with the ICAI. Every year after the end of the previous financial year, in every branch of the banks, a very rigorous audit is conducted.


Tax Audit Report Forms



FORM NO. 3CA


The tax audit report needs to be prepared as per prescribed form 3CA in case the assessee is also required to get its books of accounts audited under any other law. For instance, in cases of the company, every company is required to get the books audited under the companies act, 2013



FORM NO. 3CB


In case the assessee /taxpayer is not required to get it's books of the account audited under any law then the tax audit report need to be prepared as per prescribed form 3CB. For instance, in case of a salaried individual or firms, if their income is more than Rs. 1 crore.



FORM NO. 3CA


Form 3CD is an annexure to form 3CA or 3CB as the case may be. The tax auditor is required to fill particulars of the taxpayer for which tax audit was conducted. The form 3CD is in the form of an information memorandum and forms part of the audit report u/s. 44AB.




Difference Between Tax Audit & Other Forms of Audit



Audit Under Company Act


Every company registered in India under the companies act,2013 is required to get its books of account audited irrespective of its turnover. This kind of audit is a thorough checking of the books of account, the vouchers and supporting documents so that the auditor can express their opinion as required under the law.



Audit Under LLP Act


Under LLP act, 2008 only those LLP is required to get their books audited where the contribution/capital of the LLP is equal to or more than 25 lac or where the turnover of the LLP has reached or crossed Rs. 40 lac. The scope of the audit is similar to company audit, and it also is known as the statutory audit for LLP.



Audit Under GST


The new law of The goods and services tax act imposes a universal audit on all persons registered under GST act in case the turnover of the taxpayer is equal to or more than one crores. This audit is a detailed reconciliation report prepared and certified by a practicing chartered accountant concerning the GST Act.



Procedure For Patent Registration in India



Process to Conduct a Statutory Audit

A. Cash Verification Procedure
B. Tax-Related Items
C. Verification of Loan Accounts
D. Audit Report