Statutory audit and tax audit

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Querist : Anonymous

Querist : Anonymous (Querist)

17 September 2015 If a company is also subject to tax audit u/s 44AB, will it have 2 audit reports one as per statutory audit and 1 as per Tax Audit or Tax Audit Report (in the form of 3CD and 3CA) form part of Audit Report?

Also, as far as i know Statutory Auditor of the company can act as the Tax Audito for the company. Please correct me if i am wrong.

Amol S Joglekar

Amol S Joglekar (Expert)
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17 September 2015 you are right.
There will be 2 audits viz. tax audit and statutory audit
Both the auditors may be same

Querist : Anonymous

Querist : Anonymous (Querist)

17 September 2015 How does the process of audit differ in these two audits?
And will tax audit report form part of the statutory auditor's report or vice versa?

Amol S Joglekar

Amol S Joglekar (Expert)
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17 September 2015 The very purpose of audit is different
Tax audit is under Income tax Act,
Statutory audit may be under the respective Act viz. Companies Act.

Querist : Anonymous

Querist : Anonymous (Querist)

17 September 2015 yeah i know that..
But i wanna know how exactly do they differ..i havent seen a tax audit report i just know it includes forms 3CD and 3CA. (I have seen its format) Other than that what else is included in Tax Audit Report?

Tax audit is done based on the financials of Statutory Audit?

I just wanna get clarity on how these two audits defer and wt purpose do they serve

I know statutory audit is compulsory for all companies incorporated under Companies Act and the auditor in dis case reports to the Shareholders and Tax Audit is carried out in case the turnover of the entity is more than 1 Cr and the tax auditor reports to the Income Tax. other than dis what is the difference between these two audits?

Amol S Joglekar

Amol S Joglekar (Expert)
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18 September 2015 Please go through form 3 CD, item by item. And you will come to know the AREAs of tax audit.
Right from naming the nature of business, name of partners, if any, till % of profit etc.
This itself is the major difference that the tax audit is conducted with the prime intention of reporting the ANMOLIES with respect to Income tax Act, with special reference to the items provided in the form 3 cd