Can statutory auditor and tax auditor be same?

This section does not stipulate that only the statutory auditor appointed under the Companies Act or other similar Statute should perform the tax audit. As such the tax audit can be conducted either by the statutory auditor or by any other chartered accountant in full time practice.

What is meant by statutory audit?

A statutory audit is a legally required review of the accuracy of a company’s or government’s financial statements and records. Firms that are subject to audits include public companies, banks, brokerage and investment firms, and insurance companies.

What is tax audit in India?

A tax audit is an inspection under the Income Tax Act. It helps authorities ensure there are no tax discrepancies. Professional income over Rs.50 lakh necessitates tax audit. Not doing a tax audit can lead to penalties up to Rs.1.5 lakh.

Is GST audit a statutory audit?

Since, we know that GST Audit Service is an audit stated by the statute. So, here the applicability of Section 144 and Section 144(h) is not possible. This means that statutory auditor appoint can be appointed as a GST Auditor for a company. Who can be appointed as GST Auditor?

Is statutory audit compulsory?

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.

Which is an example of statutory audit?

E.g., like misappropriation of funds by ensuring continuous examination of data, which may be in the scope of other types of audits. A statutory auditor can ask for the company’s financial books, records, or information concerning that. It is his right, and the management cannot deny him for the same.

What is statutory audit in commerce?

Statutory Audit means a type of audit mandated by the law or a statute to make sure that the book of accounts is true and fair which is presented to the public and regulators. If the business meets certain criteria, then the statutory audit is mandatory. Generally, statutory audit means financial audit.

What is tax audit limit?

For fiscal 2019-20 i.e. AY 2020-21, limit was Rs 5 crore for businesses and Rs 50 lakh for professionals and due date for original tax audit report was January 15, 2021. New Delhi: The income tax Department has enabled the tax audit utility form on its portal for financial year 2019-20 and 2020-21.

What are the advantages and disadvantages of statutory audit?

Advantages and disadvantages of statutory audits. controls are weak or inadequate, the auditor will provide recommendations for improvement. This will help management in reducing risk and improving the performance of the company. Even where a statutory audit is not required, for example due to small company statutory exemption limits,…

What are processes constitute a statutory audit?

Statutory audit procedures are varied, and include understanding a business entity’s operating environment and controls. Audit procedures also could require auditors to test internal mechanisms as well as account balances and details of accounts.

What work does statutory auditor do?

Statutory Auditor A statutory auditor has the right to access all of the company’s financial books, records, and information. He has the duty to write an auditor’s report. If he is writing a qualified report, i.e. In case the auditor uncovers any fraud during his audit he must report it to the Central Government authorities.

What are the statutory rights of an auditor?

Rights of an auditor: Following are the rights of an auditor. Right to access the books of accounts. Right to get explanation from the staff. Right to receive notice of general meeting. Right to attend general meeting. Right to seek legal and technical advises. Right to claim remuneration.