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Christine Diaz   10 May 2021

Turnover limit for OPC audit ?

What is the turnover limit for OPC audit ? I have a company that gets 54 lakhs turnover . Thanks everyone for answers in advance !



 18 Replies

CMA Poornima Madhava

CMA Poornima Madhava (CMA)     10 May 2021

Statutory audit is compulsory irrespective of turnover.

Christine Diaz

Christine Diaz   10 May 2021

How different is statutory audit from tax audit  ? I just registered an OPC and i am confused. Thanks for all answers :) This forum is very helpful .

CMA Poornima Madhava

CMA Poornima Madhava (CMA)     10 May 2021

Statutory audit is required to be done as per provisions of Companies Act. Similarly Income Tax Audit u/s 44AB of IT Act, GST Audit as per CGST Act etc.

For more info on OPC: https://www.anbca.com/all-about-opc-audit/

Note: It is a random link, just for info

Christine Diaz

Christine Diaz   10 May 2021

Is IT audit a subset of Statutory audit ?  Is statutory audit harder than tax audit ? I am new to all this.

My OPC will get less than 1 crore turnover this FY. So, should i just get statutory audit ? My auditor will likely charge 25k inr for this .

Thanks :)

CMA Poornima Madhava

CMA Poornima Madhava (CMA)     10 May 2021

No. Both are different: IT Audit is stipulated under Income Tax Law and Statutory Audit under Companies Act.

Only statutory audit is required in this case.

Christine Diaz

Christine Diaz   10 May 2021

Thanks Poornima madam  :) You have such knowledge and will to help others in ignorance . Thanks so much .

So, which is harder ? Statutory or IT audit ??

For statutory audit, will i have to give company bank acc statement to auditor, and all invoices   --- like for tax audit  ?

Christine Diaz

Christine Diaz   10 May 2021

Thanks Poornima madam  :) You have such knowledge and will to help others in ignorance . Thanks so much .

So, which is harder ? Statutory or IT audit ??

For statutory audit, will i have to give company bank acc statement to auditor, and all invoices   --- like for tax audit  ?

CMA Poornima Madhava

CMA Poornima Madhava (CMA)     10 May 2021

1) Nothing is harder. Both are governed by respective statutes.

2) Yes, you are right. You need to provide books of account to a CA.

Christine Diaz

Christine Diaz   10 May 2021

1. Does statutory audit also include tax audit in its report  ?

2. Will the auditor go over every transaction on bank statement and compare with invoices to determine validity and accuracy , in case of statutory audit .

Thanks  :)

CMA Poornima Madhava

CMA Poornima Madhava (CMA)     10 May 2021

1) No (IT Audit is different as already explained)

2) Yes (but this is highly subjective and depends on the auditor as well as the nature of transactions of the company being audited)

Christine Diaz

Christine Diaz   10 May 2021

If the invoice says " go Media llc " and if the company receives payment through paypal via " go Media llc " , will that cause a problem during statutory audit ?

Bank statement would read " paypal " and not " go Media llc " .

How to resolve this issue ?

Thanks for all help :) I thank trillion times !!

 

CMA Poornima Madhava

CMA Poornima Madhava (CMA)     10 May 2021

No, in general, I don't think it would be an issue if you have a business account with Paypal. Go Media is the client and payment received thru Paypal. I think it is very similar to buying from e-commerce operators (where we make payment to the operator and receive invoice from the participant) except that it is a sale transaction here.

But am not sure about this.

Christine Diaz

Christine Diaz   10 May 2021

Thanks Poornima madam :) such help .

I will just show in receipt that payment method was paypal . I guess that would work  ?

Will auditors check both invoice and receipts ? If i invoice for 6000 usd, then receipt will only have 5600 usd because of paypal fees. Should i show auditor both invoice and receipts during auditing ?

CMA Poornima Madhava

CMA Poornima Madhava (CMA)     10 May 2021

I guess that would work.

Yes, all transactions related to OPC to be disclosed to the auditor for audit.


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