The Statutory Audit of the financial statement is an independent examination of the books of account of a company or eligible LLP by an independent chartered accountant in full-time practice. The audit is a very serious business, and the auditor is under obligation to conduct it in a free and fair manner. As per the companies act the audit of a company can be done by an independent auditor who must not be providing any other service to the company like GST filing or maintenance of books of account or any advisory what so ever. In other words, the auditor must be impartial and not advisors of the business which he is auditing. There is very stringent penalty including imprisonment to the CA as well as company and its directors including key managerial personnel in case there is any violation on this.
A company is required to prepare financial statement for period ending 31st March every year. Such financial statement must give a true and fair view of the state of affairs of the company and comply with the accounting standards notified by the central government under Section 133 of the Companies Act. The expression financial statement includes a balance sheet as at the end of the financial year; a profit and loss account or in the case of a company carrying on any activity not for profit, an income & expenditure account for the financial year; cash flow statement for the financial year; a statement for changes in equity if applicable; and any explanatory note annexed to, or forming part of, any document referred above.
Non Appointment of the first or subsequent auditor within stipulated time is punishable with Rs. 5 Lac on company and 1 Lac by every director and officer of the company
The company is required to file the financial statement to the ROC along with audit report within 30 Days of AGM; the non-filing is punishable with a penalty of Rs. 1000 per day until date of filing
Every LLP is required to file the audit report along with its financial statement in Form-8 before 30th October, failure in filing results in a penalty of Rs. 100 for each day of delay.
Tax Audit report must be filed with income tax department on or before 30th September following the previous year, on failure the penalty prescribed is Rs.1,50,000/- or 0.5% of total turnover whichever is lower
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