Limited Liability Partnership Firm
This query is : Resolved
Quick Summary
24 October 2025
I required draft of audit report and financial statements for Limited Liability Partnership Firm
24 October 2025
https://www.chhotacfo.com/blog/audit-report-format-of-limited-liability-partnership-llp/
24 October 2025
As per the 2025 ICAI Guidance Note on Financial Statements of Limited Liability Partnerships (LLPs) and the Limited Liability Partnership Act, 2008, the required financial statement format for an LLP audit report follows a structured presentation similar to Schedule III under the Companies Act, 2013, but customized for non-corporate entities.
Core Financial Statements Required
Every LLP subject to audit must prepare the following financial statements as part of its audit report :
Balance Sheet (Statement of Financial Position)
Details assets, liabilities, and partners’ capital as of the financial year end.
Statement of Profit & Loss (Income and Expenditure Statement)
Shows the LLP’s operating and financial performance for the year.
Cash Flow Statement
Mandatory for large LLPs (based on turnover and capital threshold); optional for smaller LLPs.
Notes to Accounts and Accounting Policies
Provides explanatory details, narrative descriptions, and disclosure of additional information related to each main statement.
Comparative Information
Prior period figures must be presented except for the first financial year.
Core Financial Statements Required
Every LLP subject to audit must prepare the following financial statements as part of its audit report :
Balance Sheet (Statement of Financial Position)
Details assets, liabilities, and partners’ capital as of the financial year end.
Statement of Profit & Loss (Income and Expenditure Statement)
Shows the LLP’s operating and financial performance for the year.
Cash Flow Statement
Mandatory for large LLPs (based on turnover and capital threshold); optional for smaller LLPs.
Notes to Accounts and Accounting Policies
Provides explanatory details, narrative descriptions, and disclosure of additional information related to each main statement.
Comparative Information
Prior period figures must be presented except for the first financial year.
24 October 2025
Prescribed Structure for Financial Statements
The standard format, as per ICAI’s 2025 Guidance Note , is summarized below:
Report Component ...... Major Headings to Include
Balance Sheet
I. Partners’ Funds (Capital, Current Accounts, Reserves)
II. Non-Current Liabilities
III. Current Liabilities
IV. Non-Current Assets
V. Current Assets
Profit & Loss Statement
I. Income (Revenue, Other Income)
II. Expenses (Operating, Employee, Finance Costs, Depreciation, Taxes)
III. Profit before and after tax
Cash Flow Statement
A. Operating Activities
B. Investing Activities
C. Financing Activities
Notes to Accounts
Significant Accounting Policies, Partner Remuneration, Contingent Liabilities, Related Party Disclosures, etc.
The standard format, as per ICAI’s 2025 Guidance Note , is summarized below:
Report Component ...... Major Headings to Include
Balance Sheet
I. Partners’ Funds (Capital, Current Accounts, Reserves)
II. Non-Current Liabilities
III. Current Liabilities
IV. Non-Current Assets
V. Current Assets
Profit & Loss Statement
I. Income (Revenue, Other Income)
II. Expenses (Operating, Employee, Finance Costs, Depreciation, Taxes)
III. Profit before and after tax
Cash Flow Statement
A. Operating Activities
B. Investing Activities
C. Financing Activities
Notes to Accounts
Significant Accounting Policies, Partner Remuneration, Contingent Liabilities, Related Party Disclosures, etc.
24 October 2025
Key Formatting and Disclosure Rules
Accounting Basis: Books must be maintained on a cash or accrual basis using the double-entry system.
Rounding-off: LLPs with income under ₹100 crore can round figures to the nearest hundred/thousand/lakh; those above ₹100 crore to the nearest lakh/million/crore.
Audit Criteria: Audit is mandatory if turnover exceeds ₹40 lakh or contribution exceeds ₹25 lakh.
True and Fair View: Financial statements must comply with ICAI Accounting Standards and give a true and fair view of LLP affairs.
Accounting Basis: Books must be maintained on a cash or accrual basis using the double-entry system.
Rounding-off: LLPs with income under ₹100 crore can round figures to the nearest hundred/thousand/lakh; those above ₹100 crore to the nearest lakh/million/crore.
Audit Criteria: Audit is mandatory if turnover exceeds ₹40 lakh or contribution exceeds ₹25 lakh.
True and Fair View: Financial statements must comply with ICAI Accounting Standards and give a true and fair view of LLP affairs.
24 October 2025
Audit Report Format
The LLP audit report typically includes :
Title and Addressee – “Independent Auditor’s Report to the Partners of [LLP Name]”
Opinion – Statement that financials give a true and fair view under ICAI standards.
Basis for Opinion – Reference to compliance with Standards on Auditing.
Responsibilities – Management’s and Auditor’s responsibilities.
Report on Other Legal and Regulatory Requirements – Compliance with LLP Act and MCA requirements.
Thus, an LLP audit report must enclose financial statements in the above prescribed format per ICAI’s 2025 Guidance Note, ensuring statutory compliance and transparency.
The LLP audit report typically includes :
Title and Addressee – “Independent Auditor’s Report to the Partners of [LLP Name]”
Opinion – Statement that financials give a true and fair view under ICAI standards.
Basis for Opinion – Reference to compliance with Standards on Auditing.
Responsibilities – Management’s and Auditor’s responsibilities.
Report on Other Legal and Regulatory Requirements – Compliance with LLP Act and MCA requirements.
Thus, an LLP audit report must enclose financial statements in the above prescribed format per ICAI’s 2025 Guidance Note, ensuring statutory compliance and transparency.
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