1. Audit Under the Companies Act
The Companies Act mandates statutory audits for companies to ensure financial transparency and compliance. Every company is required to appoint an auditor who examines the financial statements and provides an independent audit report.
2. Audit Under the Income Tax Act
Under Section 44AB of the Income Tax Act, businesses and professionals exceeding specified turnover thresholds must get their accounts audited. This audit ensures accurate reporting of income, expenses, and compliance with tax regulations.
3. Audit Under the Goods and Services Tax (GST) Act
Businesses exceeding the prescribed turnover limits under GST laws must undergo a GST audit. This audit ensures the correctness of tax calculations, ITC claims, and compliance with GST provisions.
4. Audit Under the Limited Liability Partnership (LLP) Act
LLPs having a turnover exceeding ₹40 lakhs or a capital contribution exceeding ₹25 lakhs must undergo an audit. The audit ensures compliance with LLP regulations and financial accuracy.
5. Other Statutory Audits
Various other statutory audits are conducted under different laws, including labor laws, environmental laws, and sector-specific regulations. These audits ensure that businesses adhere to legal requirements and maintain ethical operations.