AUDIT

Appointment of an auditor

All companies registered in India are required to appoint an Auditor and have its book of accounts audited each year.

What is the purpose to appoint an auditor in the company?

The purpose for Appointment of Auditor. The auditors’ job is to safeguard the interests of the company’s shareholders. The auditor is required by law to analyze the accounts kept by the directors and to notify them of the company’s true financial position.

Appointment of Auditors. Within thirty days from the date of the registration of the Company other than the Government Company, it’s Board of Directors need to appoint an individual or a firm as the first auditor of the company. The members shall ratify the appointment of the first auditor in the first annual general meeting of the company.

Procedure for the appointment of First Auditors :

For the appointment of first auditors, a company may adopt the following procedure.

1. Any member of the company may nominate a person, to be appointed as First Auditor.

2. At least 14 days’ notice should be given to the members before the scheduled date of the meeting.

What are the documents required for filling form ADT-1?

The list of documents to be attached with the form ADT-1 are: Company’s Board resolution copy Written consent from the Auditor A certificate from the auditor that he/she not disqualified to be appointed as an Auditor Points to remember: Filing of form ADT-1 is mandatory for all companies either listed/unlisted/private/public/others.

Income tax audit

As per Section 44AB of the Income Tax Act, 1961, every person carrying on the business & maintaining books of accounts are required to get their books audited from a Chartered Accountant, if the gross receipt or turnover from business during the previous year exceed Rs. 1 Crore. (Tax Audit Limit is of Rs. 2 Crore in case of Presumptive Taxation u/s 44AD).

What is the income tax Audit objective?

The main objective of the tax audit is to compute the taxable income according to the law and for maintaining transparency in the financial statements filed by the assesses with the Income-tax department.

Income tax audit evaluates whether an individual or company has filed tax returns of the assessment year appropriately. Section 44AB of the Income Tax Act of 1961 lays down the provisions for an income tax audit.

What is the difference between tax audit and fiscal audit?
The tax audit is an objective examination of compliance with tax obligations. Where the financial audit focuses more on the compliance of the accounts. The fiscal audit focuses on the accounting results.

Audits Services

  • Appointment of an Auditor 1 (Form ADT-1)
  • Income Tax Audit (Above 1 Crore Upto 2 Crore)
  • Income Tax Audit (Above 2 Crore Upto 5 Crore)
  • Income Tax Audit (Above 5 Crore Upto 10 Crore)
  • Income Tax Audit (Upto 1 Crore)
  • Appointment of an Auditor 1 (Form ADT-1)
  • Income Tax Audit (Above 1 Crore Upto 2 Crore)
  • Income Tax Audit (Above 2 Crore Upto 5 Crore)
  • Income Tax Audit (Above 5 Crore Upto 10 Crore)