Internal Audit Fee Expense

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Our CA advised to book Internal audit and cost audit fees in ledger of Professional Fees

and Statutory audit fees in Audit Fees

Why can't we book all the above expenses in Audit Fee Only

Please advise with facts
Replies (1)

Summary: Your CA advised separating these fees to provide clarity in financial reporting. Statutory audit fees relate to mandatory external audits, whereas internal audit and cost audit fees are often classified as professional or specific compliance-driven expenses. Keeping these ledgers separate improves budgeting transparency and makes it easier for auditors to verify compliance during their review.

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