Question: What Is Difference Between Statutory Audit And Tax Audit?

What is the difference between tax audit and company audit?

GST Audit is a new audit type, which is conducted under the Goods and Service Act.

In this type of audit, any entity whose turnover is more than Rs….GST Audit.Basis of differenceApplicabilityStatutory AuditAll CompaniesTax AuditAllGST AuditAll6 more columns.

What are the steps in statutory audit?

What Is The Process Of A Statutory Audit In India?Statutory Audit: It is an official inspection based on the Companies Act of 2013. It should be conducted every year in every company by an independent body: an auditor or an audit firm. … Assets. … Inventories. … Loans. … Deposits. … Statutory Dues. … Profit and Loss. … Other Dues and Payments.More items…

Is Auditing compulsory?

An audit of annual accounts is compulsory for every: public limited company having more than two shareholders. state accounting entity. local government.

What companies need to be audited?

A company must have an audit if at any time in the financial year it has been:a public company (unless it’s dormant)a subsidiary company within a group which is not small.an authorised insurance company or carrying out insurance market activity.involved in banking or issuing e-money.More items…•

Is tax audit compulsory for company?

A tax audit is mandated on all companies, limited liability partnerships (LLPs), and individuals whose turnover crosses a particular threshold limit. Taxpayers who get their accounts audited under any other law do not have to get their accounts audited again for a tax audit.

What is the due date for statutory audit?

For those taxpayers whose accounts need to be audited, the deadline has been extended by two months till January 31, 2021, the finance ministry said. The due date for completion of statutory audit and presenting them in the AGM was already extended to December 31, 2020.

Can tax audit and statutory auditor be same?

3. Is it necessary to appoint statutory auditors as tax auditors? Section 44AB does not specify that only the statutory auditor appointed under the Companies Act should perform the tax audit. Therefore the tax audit can, be conducted either by the statutory auditor or by any other CA in practice.

What are the 3 types of audits?

What Is an Audit?There are three main types of audits: external audits, internal audits, and Internal Revenue Service (IRS) audits.External audits are commonly performed by Certified Public Accounting (CPA) firms and result in an auditor’s opinion which is included in the audit report.More items…•

How do you pass an audit?

8 Tips to Help You Pass Compliance AuditsPerform a Self-Compliance Audit. … Identify Users Accessing Shared Credentials. … Ensure You Have a Compliance Audit Trail. … Monitor Activity of Privileged Users, Business Users & Vendors. … Stay Tuned to Security Events Within Your Industry. … Watch Out for New Regulations.More items…•

What is the difference between statutory audit and internal audit?

Statutory Audit is done annually to form an opinion on the financial Statement of the Company i.e. whether they are showing the true and fair views of the affairs of the Company or not Whereas Internal Audit is done basically to detect and prevent errors and frauds.

What is the meaning of statutory audit?

A statutory audit is a legally required review of the accuracy of a company’s or government’s financial statements and records. An audit is an examination of records held by an organization, business, government entity, or individual, which involves the analysis of financial records or other areas.

Who is liable for statutory audit?

Meanwhile, a limited liability partnership (LLP) has to undergo a statutory audit only if its turnover in any financial year exceeds INR 4 million (US$55,945) or its capital contribution exceeds INR 2.5 million (US$34,963).

What is the limit for tax audit?

NOTE: The threshold limit of Rs 1 crore for a tax audit is proposed to be increased to Rs 5 crore with effect from AY 2020-21 (FY 2019-20) if the taxpayer’s cash receipts are limited to 5% of the gross receipts or turnover, and if the taxpayer’s cash payments are limited to 5% of the aggregate payments.

What is the audit process?

Although every audit project is unique, the audit process is similar for most engagements and normally consists of four stages: Planning (sometimes called Survey or Preliminary Review), Fieldwork, Audit Report, and Follow-up Review. Client involvement is critical at each stage of the audit process.

How can I apply for statutory audit of bank?

A statutory audit must review the documents below for evaluating the bank’s preliminary process.Prescribed Application form.Loan Application.KYC Compliance.Latest Audited Financial Statements.Project Report, Projected P&L, Balance Sheet and Cash Flow Statement.Board Resolution for Availing the Credit Facilities.More items…

Is statutory audit and external audit same?

Statutory Auditors are a part of the external audit process are focused on the various financial accounts or risks associated with the domain of finance and are appointed by the shareholders of the company. … The external audit is related to the reports on financial statements of the corporate entity.

How statutory audit is done?

A statutory audit can be defined as a legally required review that is performed to check the overall accuracy of a company’s financial records and statements. … It is performed by closely examining accounting information from bookkeeping records, bank balances and financial transactions.

What is audit evidence and examples?

Auditing evidence is the information collected by an auditor to ascertain the accuracy and compliance of a company’s financial statements. … Examples of auditing evidence include bank accounts, management accounts, payrolls, bank statements, invoices, and receipts.