Yes, Statutory audit is applicable for law firms if their turnover exceeds Rs. 40 lakhs in any of the three preceding years. This is under Rule 24 of the Limited Liability Partnership Rules, 2009.
The audit must be conduct by a chartered accountant who registered with the Institute of Chartered Accountants of India.
The audit report must be file with the Registrar of Companies within six months of the end of the financial year.
Statutory audit report is requir to verify the accuracy of the law firm’s accounts and to ensure that the law firm has comply with the applicable laws and regulations.
The audit report will also look at the law firm’s internal controls over its financial reporting.
If the law firm fails to get its accounts audited, it will be liable to a penalty of Rs. 1 lakh.
Here are some of the benefits of getting a statutory audit for a law firm:
- It can help to ensure that the law firm’s accounts are accurate and reliable.
- It can help to identify any areas where the law firm can improve its internal controls over its financial reporting.
- It can help to protect the law firm from legal action.
- It can help to improve the law firm’s credibility with its clients and other stakeholders.
To visit: https://www.mca.gov.in/
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