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statutory audit

Shruti Agarwal (job) (49 Points)

02 December 2010

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17 Replies

Sunshine (Helping All) (10575 Points)
Replied 02 December 2010

yes it is mandatory....

Ankur Garg (Company Secretary and Compliance Officer) (114783 Points)
Replied 02 December 2010

Yes it is mandatory...

Audit of accounts is compulsory for all types of companies

All the companies registered under the Companies Act, 1956, whether public or private and whether having a share capital or not, are required to maintain proper books of accounts under Section 209 of the Companies Act, 1956. Companies have also to get their Books of accounts audited as required under section 224 of the Act.

APPOINTMENT OF AUDITORS

Section 224 governs the appointment of auditors. The auditors are to be appointed by the shareholders of the company in an annual general meeting by passing an ordinary resolution. Kindly note appointment of Statutory under section 224(1) is an ordinary business read with Section 173 of the Companies Act, 1956.

First auditors are to be appointed by the Board of directors within one month of the date of registration of the company as per section 224(5).

3 Like

(Guest)

Originally posted by : Sneha..sunshine..
	yes it is mandatory....

(Guest)

yes it is mandatory for for every company

Santhosh Poojary (SIEMPRE AHÍ PARA TI) (15607 Points)
Replied 02 December 2010

Audit of accounts is compulsory for all types of companies

Manmohan ACA, CS (Chartered Accountant ) (14243 Points)
Replied 02 December 2010

Originally posted by : SAN...
	Audit of accounts is compulsory for all types of companies

(Guest)

yws it is compulsory for all type of companies

Nitesh Mangal (CA-PCC Articale Assistant) (269 Points)
Replied 02 December 2010

yes Statutory Audit is mandatory for every company whether public or private.

Tax Audit is mandatory if a Assessee having gross receipt/sale above of Rs.60,00,000 and for professional Receipt is above 15,00,000.

First Auditior is appoinated by BOD within 1 month from date of reg. of the company.IF BOD fails, auditor is appoinated by share holder passing a board solutaion.

swapnil (CA Final) (598 Points)
Replied 02 December 2010

yes nitesh is correct, because tax audit threshoul limit for companies is 60,00,000 and other than companies [individual, HUF, Firm] is 15,00,000, which was earlier 40,00,000 and 10,00,000 respectively.

so tax audit is not only applicable 4 corporate but also other than corporate also

Vivek Romee (Practice) (39 Points)
Replied 03 December 2010

Chill !

Was it a joke Shruti ?

There are mainly 2 kinds Audit for a Company. One is Sattutory Audit & another is Internal Audit.

Statutory Audit is Compulsory for all companies whether Private or Public as well as a Company registered under Section 25.

however Internal Audit is not compulsory unless the Company is listed or having Average turnover exceeding 5 Crores in immaditely preceding 3 financial years & having paid up share Capital & reserves exceeding Rs. 50 lacs (including Revaluation resesrve & Preference Share capital but excluding Share Application money).

Internal Audit is just a process of evaluating managements performance & operational activities.

its almost equal o operational audit with a minute difference.

Since the Company is managed by Board of directors, there must be a proper control & survillance over there activities, thats why Statutory Audit was made compulsory.

I hope this information was helpful.

regards,

Vivek Singh

CA (Final)

Devendra (Chartered Accountant) (4780 Points)
Replied 03 December 2010

Statutory Audit is Compulsory for all companies whether Private or Public as well as a Company registered under Section 25.

Abhishek Jain (RisK Manger) (231 Points)
Replied 03 December 2010

yes stat audit is maindaitory for all companies

Mayur Arora (CA Final) (295 Points)
Replied 03 December 2010

Ya it is mandatory for every private & public limited co. to have their accounts audited every year by the Statutory Auditro.

CA Deepesh Ruhela (Keen to Learn) (3271 Points)
Replied 03 December 2010

Dear Swapnil you are right about Tax audit limit of Companies but 6000000 limit is also applicable for other than companies (non proffessionals) and 1500000 limit is applicable for proffessionals wheather firm or individuals.