30 July 2010
Hello expert, 1) What is the diff. b/w tax audit & statutory audit? 2)to whom is tax audit applicable? 3)for a Pvt. ltd. company are both tax & stat. audit applicable?
30 July 2010
Statutory Audits are those mandated by a statute. So by that definition even tax audit is a statutory audit.
Statutory audit (under the Companies Act) include statutory financial audit and statutory cost audit. Statutory Financial audit is conducted by a Chartered Accountant and Statutory Cost Audit is conducted by a Cost Accountant. The statutory financial audit is compulsory for all companies where as Statutory cost audit is applicable only to certain industries on fulfilling certain criteria.
Similarly Tax Audit (Section 44 AB) under the Income Tax Act is done by a Chartered Accountant.
30 July 2010
For Every company having gross receipts from business of Rs.40 Lacs or more (60 Lacs from FY 2010-11) tax audit is mandatory. But statutory financial audit is mandatory in any case.
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