Verifying GST registration of a company, Statutory audit and tax audit are two distinct types of audits conducted for different purposes.
Statutory audit:
A statutory audit is perform to ensure that a company’s financial statements provide an accurate and fair view of its financial position and performance. It is a legal requirement mandate by the Companies Act, 2013 in India.
The objective of a statutory audit is to assess whether the financial statements comply with the applicable accounting standards and regulatory requirements.
The audit is conduct by an independent auditor appoint by the shareholders of the company. The auditor examines the financial records, transactions, internal controls.
And other relevant information to express an opinion on the financial statements in the audit report.
Tax audit:
A tax audit is conduct to verify the accuracy and compliance of a taxpayer’s income tax return as per the provisions of the Income Tax Act, 1961. It is mandate for certain taxpayers whose annual turnover or income exceeds the specified threshold. The tax audit is perform by a chartered accountant who examines the taxpayer’s books of accounts.
Financial statements, and other relevant documents to ensure the proper disclosure of income, deductions, and compliance with tax laws. The purpose of the tax audit is to detect any discrepancies, under reporting.
or non-compliance with tax provisions and to report the findings in the tax audit report.
In summary, while a statutory audit focuses on evaluating the accuracy and fairness of a company’s financial statements.
A tax audit is specifically conduct to assess the accuracy and compliance of a taxpayer’s income tax return with the provisions of the Income Tax Act.
To visit https://www.gst.gov.in/
