Tax Simply Services / Auditing & Assurance Services
Tax Simply Services / Auditing & Assurance Services
We are blessed with team of qualified Chartered Accountants highly efficient in Auditing and assurance services. Our wide range of services are aimed for financial stability of the clients and take care of the decision making abilities. The services we provide are in comply with the legal environment.
The requirement is enforced and mandated by law
Statutory Audit is a type of audit which is mandated by a Statute or Law to ensure true and fair view of the book of accounts of a Business and is presented to the Regulators and the Public. Unlike Internal Audit, Statutory Audits are not optional and must be performed.
Statutory Audits must be completed by qualified Chartered Accountants in practice, who are independent of the Business. Further, the report prepared by the Auditor on his/her findings must be presented in the format prescribed by the Regulator. Assessing the transparency and reliability of financial statements and other source data for evaluating accounting systems and internal controls.
As per Companies Act, 2013, every company, irrespective of its sales turnover or nature of business or capital must have its book of accounts audited each financial year.
Thus, the Board of Directors of a Company are required by law to appoint an Auditor within 30 days of incorporation and thereafter conduct an audit of its financial statements each financial year.
All companies (Private Limited Company, One Person Company, Limited Company,) irrespective of nature of business and sales turnover must appoint a Statutory Auditor.
Conduct of Statutory Audit of Books of Accounts of entity every year and preparation of Independent Audit Report forming an opinion whether books of Accounts give a true and fair view.
To determine whether the information is properly disclosed in the financial statements, audit may involve.
The tax audit report is prepared in following three forms based on the type of the tax audit undertaken.
The tax audit report needs to be prepared as per prescribed form 3CA in case the assessee is also required to get its books of accounts audited under any other law.
In case the assessee /taxpayer is not required to get its books of account audited under any law then the tax audit report need to be prepared as per prescribed form 3CB.
Form 3CD is an annexure to form 3CA or 3CB as the case may be. The tax auditor is required to fill particulars of the taxpayer for which tax audit was conducted. The form 3CD is in the form of an information memorandum and forms part of the audit report u/s. 44AB
The tax audit as required under the Income tax act has an entirely different objective, wherein the tax auditor is required to prepare a detailed report in a specified format, i.e. 3CA/ 3CB and 3CD giving details of the compliance with various provisions of the Income Tax Act. In other words, the tax audit is narrow in its scope in comparison with the statutory audit.
Under section 44AB, a Compulsory Tax Audit is required to be Conducted by a Practising Chartered Accountant if total sales/turnover of business exceeds Rs. 1 crore or gross receipts of Professionals exceeds Rs.50 lacs as per Income Tax Act, 1961. However, the above limit will be Rs. 10 crore if aggregate cash received and aggregate cash paid does not exceed 5% of total amount received and total amount paid during the previous year.
Tax Audit refers to the independent verification of the Books of Accounts of the assessee to form an opinion on the matters related to taxation compliances carried out by the assessee.
While preparing the Books of Accounts of the Business or Profession for the purpose of Income Tax filing, the assessee has to comply with the provisions of Income Tax Act, 1961 particularly from section 28 to section 44.
The provisions in these sections deal with the income from business or profession which is chargeable to tax, how such incomes are computed, chargeability, various allowances or disallowances and the rate of depreciation on the various assets held by the assessee, deduction for making investments, deductions for making donations, treatment and tax compliances on borrowed capital, treatment and tax incidence on bad debts, statutory funds, accounting methods etc.