Tax audit on loss

No

Correct.....

As per Sub-section 44AD (5).....

(5) Notwithstanding anything contained in the foregoing provisions of this section, an eligible assessee to whom the provisions of sub-section (4) are applicable and whose total income exceeds the maximum amount which is not chargeable to income-tax, shall be required to keep and maintain such books of account and other documents as required under sub-section (2) of section 44AA and get them audited and furnish a report of such audit as required under section 44AB.]

But the main problem is, for next four years the firm cannot opt for sec. 44AD, if opted for the section in  preceeding year ......