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statutory audit

Shruti Agarwal (job) (49 Points)

02 December 2010

thank u for all of yours answers.

but i wanted to know whether statutory audit is also performed in case of proprietorship and partnership firms

or it is mandatory only for companies.

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7 Replies

Devendra (Chartered Accountant) (4775 Points)
Replied 02 December 2010

Hi Shruti,

Statutory Audit is conducted in case of Private and Public Ltd. Companies. It does not apply to Sole Proprietorship and P'ship Firms. Whereas Pvt. and Public Ltd Companies, Sole Proprietorship and P'ship Firms are subject to Tax Audit if their Turnover (ie. Gross Receipts) exceeds60 lakhs from A.Y 2011-2012 in case of Business. And in case of Tax Audit of Profession, the turnover limit is Rs. 15 lakhs from A.Y 2011-2012 onwards.

Regards,

Devendra P Kulkarni

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Zahir Ahmad (Articled Assisstant) (25 Points)
Replied 03 December 2010

Hi Dear

I want to know the difinition of Associate and Company.

wat is diffrence b/w these two

Devendra (Chartered Accountant) (4775 Points)
Replied 03 December 2010

Definition of Associate Company :

Firm over which another firm exercises a degree of control which is less than the degree of control exercised over a subsidiary. In accounting, such control is typically taken to mean the ownership of at least 20 percent of voting shares, and some say in the management of the associate firm. Associated companies usually have interlocking directorates to ensure they have common policies and complementary objectives.

Definition of Company :

Company is a voluntary association of persons formed for the purpose of doing business having a distinct name and limited liability. It is a juristic person having a separate legal entity distinct from the members who constitute it, capable of rights and duties of its own and endowed with the potential of perpetual succession. The Companies Act, 1956, states that 'company' includes company formed and registered under the Act or an existing company i .e. a company formed or registered under any of the previous company laws.

Regards,

Devendra. K

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Ajay Mishra (Company Secretary) (74337 Points)
Replied 08 December 2010

Good Efforts Dear Devendra.......................

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sharmila (Admin cum Accountant) (30 Points)
Replied 30 July 2014

Dear Sir,

We are sole proprietor. Last year turnover F.Y 2013-14 75laks and currently we crossed Statuory limit 100laks. Statuory audit when will be applicable either last f.y onwards or current financial year. we confused here. kindly clarify.

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(Guest)

Dear Sharmila, no Statutory audit is conducted for sole prop. its only for companies. you will have to go through tax audit only

sharmila (Admin cum Accountant) (30 Points)
Replied 11 August 2014

Dear Sir,

Thanks for the message. Last finanical year our taxable turnover approx 80lacs currently we are crossing the tax audit limit 100 lacs. Can we go for tax audit now?