Types of Audit Services We Provide
| Audit Type | Required For | Governing Authority |
|---|---|---|
| Statutory Audit | All companies (even zero revenue) | Companies Act 2013 |
| Tax Audit (3CA-3CD) | Businesses with turnover > ₹1 Crore; Professionals > ₹50 Lakh | Income Tax Act, Section 44AB |
| Internal Audit | Companies above specified thresholds | Companies Act 2013 (Section 138) |
| GST Audit | Previously mandatory for turnover > ₹2 Crore (now abolished but reconciliation still critical) | CGST Act |
| Stock Audit | Companies with large inventory (bank requirement) | Banks / Internal requirement |
| Cost Audit | Specified manufacturing companies | Companies Act 2013 (Section 148) |
Statutory Audit — Key Requirements
- Every company registered under Companies Act 2013 must appoint a Statutory Auditor
- First auditor must be appointed within 30 days of incorporation
- Auditor tenure: 5 years (individual CA) or 10 years (audit firm), with mandatory rotation
- Auditor issues Independent Auditor's Report on financial statements
- Audit report must be included in Annual Filing with ROC
Tax Audit (Section 44AB) — Who Must Get It?
- ✅ Business with gross receipts/turnover > ₹1 Crore
- ✅ Professionals with gross receipts > ₹50 Lakh
- ✅ Persons opting for Presumptive Taxation (44AD) with income below 8% of turnover
- ✅ The audit report is in Form 3CD — a comprehensive 44-clause checklist
Audit Services FAQs
No. A Chartered Accountant who prepares or maintains the books of accounts of a company cannot audit that same company — this is a fundamental independence requirement under Section 141(3)(f) of the Companies Act. LegalPehchan maintains separate teams for bookkeeping and audit services.
The company and every officer in default are liable for a fine of minimum ₹25,000 and maximum ₹5,00,000 for each default. For not conducting tax audit, the penalty is 0.5% of turnover subject to a minimum of ₹1.5 Lakh.