Difference between tax audit and statutory audit

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Querist : Anonymous

Querist : Anonymous (Querist)

21 February 2017 Dear Experts,
Pls clarify the difference between tax audit and statutory audit?

Regds
Amit kumar

CS Mitesh Mehta

CS Mitesh Mehta (Expert)

22 February 2017 A statutory audit is an audit, which is made mandatory by law for eg, A company is governed by Companies Act, a trust is governed by Trust Act, Bank by RBI Act, NBFC by RBI Act and Companies Act etc. So it the requirement of that particular act that the organization needs to get its accounts audited. A statutory audit is a compulsory audit.

Whereas threshold limit for tax audit for FY 2016-17 - turnover exceed Rs. 2 crore.for assessee's claiming presumptive taxation benefit under section (u/s) 44AD of the Income Tax Act 1961 (the Act).

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Querist : Anonymous

Querist : Anonymous (Querist)

22 February 2017 Sir,
Thanks for your valuable input...

Pls tell me we are pvt. Ltd. Company engaged in mfg activities. So in this scenario is it mandatory to conduct statutory audit of pvt. Company. If so who will conduct it and what's its procedure.......

CS Mitesh Mehta

CS Mitesh Mehta (Expert)

22 February 2017 Yes it is mandatory. to appoint statutory Auditor to conduct statutory audit. It is conducted by Practicing Chartered Accountant.

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