Difference Between Statutory Audit and Tax Audit

Tax Audit is an audit made compulsory by the Income Tax Act if the turnover of the assessees reaches the specified limit. Statutory Audit is performed by external auditors whereas tax audit is conducted by a practising Chartered Accountant. ... Conversely, Tax Audit is the audit of tax related transactions.

1. Is statutory audit compulsory for all companies?
2. What is the difference between statutory audit and internal audit?
3. What is the meaning of statutory audit?
4. What is the difference between 3CA and 3CB?
5. Who is liable tax audit?
6. What is the limit for tax audit?
7. Which is better internal audit or statutory audit?
8. What comes under statutory audit?
9. How many types of audit are there?
10. Who appoints the statutory auditor?
11. Is Auditing compulsory?
12. What is statutory audit in banks?

Is statutory audit compulsory for all companies?

Statutory Audit as the name suggests is a compulsory audit for all companies. Every entity which is registered under the Companies Act, as a Private Limited or a Public Limited company has to get its books of accounts audited every year.

What is the difference between statutory audit and internal audit?

2. 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 check of the accuracy of the financial statements and records of a company or government.

What is the difference between 3CA and 3CB?

A company is required to get its accounts audited compulsorily under Companies Act 2013. So, it will furnish Form 3CA. Form 3CB – In respect of a taxpayer carrying on a business or profession but who is not required to get his accounts audited under any other law.

Who is liable tax audit?

Every person who earns income by any business or profession has to maintain his books of accounts get a tax audit done except those who opted for presumptive taxation under section 44AD, 44ADA, 44AE of the income tax act 1961.

What is the limit for tax audit?

Tax Audit Limit for AY 2020-2021

The tax audit limit of Rs 1 crore has been 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.

Which is better internal audit or statutory audit?

Statutory audit is better than internal audit .... In Internal audit work u ll start feeling as if instead of article u r an employee of the company or firm of which u r doing internal audit.. internal audit work is monotonous too....

What comes under statutory audit?

Statutory Audit is a type of audit which is mandated by a Law or a Statute to ensure the books of accounts presented to the regulators and public are true and fair. Statutory audit is mandatory if certain criteria are being met by the business.

How many types of audit are there?

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.

Who appoints the statutory auditor?

How is the appointment of an Auditor for different kinds of Companies done? -Appointed by the Board Of Directors. -This has to be done within 30 days from the date of Registration. -Appointment can also be done by Members at Extraordinary General Meeting within 90 days of information.

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 is statutory audit in banks?

Statutory audit of banks can be defined as an audit to ensure that the financial statements and books of account presented to the regulators and the public are fair and accurate. It is an audit that is prescribed by a different statute such as Income Tax, Reserve Bank of India, Companies Act and so on.