An audit is compulsory for businesses to verify the accuracy of their financial records and increase investor confidence. There are several types of audits including tax, GST, cost, and secretarial audits. Tax audits are mandatory for proprietorships, partnerships, professionals, and companies with over Rs. 1 crore in annual turnover. GST audits are required for businesses over Rs. 2 crore in annual turnover. Cost audits apply to large companies over certain thresholds. Secretarial audits are needed for listed and large public and private companies. Maintaining accurate records through regular audits can help businesses avoid penalties.

1. Why Audit Is Compulsory For Your
Business?

2. An audit sets a precondition for your business
investors and lenders so that they can rely on all
facts and figures you present.
Auditing is done to scrutinize financial records of
business to verify accuracy by a certified
accountant.
Audits increase accuracy of your accounts and
allow investors to invest on your business.

3. Types of audit
 Tax audit
 GST audit
 Cost audit
 Secretarial Audit

4. Tax audit
Who must get their audits done?

5. Proprietorship and Partnership Firms
Compulsory for both the proprietorship and
partnership firms with a turnover more than
Rs. 1 crore.
For professionals with gross receipts more
than Rs. 50 lakhs during the financial year.
**Can apply for Presumptive Taxation Scheme

6. Limited Liability Partnership
LLPs with a turnover more than Rs. 40
Lakh or a contribution more than Rs. 25 Lakh,
has to get audits done.
Every business with gross receipts or
turnover over Rs. 1 crore in the financial year
must get their tax audit done.
Partners of an LLP can get their books of
accounts audited voluntarily as per rules.
**LLPs can't use Presumptive Taxation Scheme.

7. Companies
 Every company must get their books of
accounts get audited.
 On failing, the company will be penalized with
0.5% of total sales turnover or Rs 1. 5L,
whichever is lower.

8. Other types of Audit

9. Who must get their GST audits done?
 Business with turnover more than Rs. 2 Crore
in the financial year
 If the GST department passes an order to
conduct a GST Audit

10. Cost audit
This is for very company specified under Table
(A) of rule 3 (Regulated Sectors)
Companies whose total annual turnover
from all services and products is Rs. 50
crore or more in the financial year.
Total turnover of each product/s or
service/s that have crossed records of about
Rs. 25 crores or more.

11. This is also applicable to every company
mentioned under Table (B) of rule 3 (Non-regulated
Sectors)
Companies whose total annual turnover Rs.
100 crore or more. in the financial year.
The total turnover of product/s or service/s to
be maintained at Rs. 35 crores or more.

12. Exemptions to Cost Audit
Company whose revenue from foreign exports
is more than 75% of its total revenue
A company which operates from a specific
Economic Zone
A company which produces electricity for
captive consumption via Captive Generating
Plant

13. Secretarial Audit
Who must get this audit done?
Listed Companies
Public Companies with paid-up share capital
of Rs. 50 Crore or more
Public Companies with a turnover of Rs. 250
Crore or more
Any Private company that is also subsidiary
to the public companies, mentioned above.

14. The main reason why you must get your audits
done is to maintain accuracy. And paying your
audits timely will save you from penalties.
Need help to keep your financial records
organized?
Connect with Venture Support to keep your book
of accounts updated and get your audits done.

15. Venture Support
703, 704 Merlin Infinite
DN- 51, Sector –V
Salt Lake City
Kolkata – 700091
West Bengal
www.venturesupport.in
Ph. No: 033 46016344