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Audit query

krina (student) (1263 Points)

26 August 2012

Hello to all CCI Members..

can someone please explain me the diffrence between TAX AUDIT and normal AUDIT ??

thanks in advance ..

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Giridhar S Karandikar (Team Lead) (7543 Points)
Replied 27 August 2012

TAx Audit means audit which is requried to be performed under the I-T Act. This audit is applicable if the turnover in case of business and gross receipts in case of profession crosses the prescribed limit. Currently the limit is Rs 1Crore for business and 15lacs for profession. IN uchs case the books of accounts are required to be audited by a CA and the report is to be submitted on or before 30th Sept of the A.Y. Normal audit means audit whic is required to be performed even if tax audit is not applicable. For instance under the Co's Act the audit is prescribed by the statue. So even if the turnover is below Rs 1crore then also audit is mandatory under the Co's Act. Similarly under the Co-operative Societies Act the Registered society is required to get the books of the society aduited & submit the Audit Report to the Registrat of Societies.

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