HA coveys to its client about
Audit as-
All U Do Is Think Of Reassigning work
Because we specialize in Tax and Audit Support too!
What is tax audit?
The word Audit is derived from the word “Audire” which means to hear. The history of auditing goes back to Mesopotamia, Greece, Egypt, Rome, the UK, and Indian civilization. It is as old as an Accounting system. Indian auditing & accounting system is Arthasashthra written by Kautilya.
During the initial days, auditing existed as a method to maintain governmental accountancy and record-keeping. In Industrial Revolution (1750 to 1850) auditing took one of the mainstream positions in Financial & Accounting. With the growth of trade and commerce when the small companies expanded and the hold of companies’ management from one man changed to team managing. Such need of an hour laid the foundation for professional auditors.
With the years auditing has taken many forms and has changed with time. Currently, the Income Tax Act of 1961, under Section 44B Auditing is managed under.
Types of Auditing
There are mainly three types of audit-
1. Filed Audit
2. Office Audit
3. Correspondence Audit
Statutory Audit & Tax Audit
A statutory Audit is a compulsory audit for companies governed by the Companies Act/ Trust Act/ RBI Act. Its carried out by an external auditor. Whereas Tax Audit is made compulsory by the Income Tax Act (note: If the annual gross turnover of the organization exceeds a specific limit). The Tax Audit is conducted under Section 44AB.
Focusing majorly over Tax Audit
According to the latest amendments the tax audit limit has been increased from Rs. 1 crore to Rs. 5 crore
Section 44AD presumptive taxation states that business owners whose annual gross turnover doesn’t exceed Rs. 2 crores are eligible for taking up this scheme. And if the
Business turnover exceeds 1 crore but is below Rs. 2 crores then one has to carry out taxation under section 44AB
The other classification of Auditing is based upon the specific area of work.
In the mid-1980s Risk-Based Auditing (RBA) was introduced where auditors will focus on the areas which are error-prone. Due to digitalization, auditing is also taken a Digital shape. Computer Assisted Audit Techniques commonly known as CAAT are introduced too.
Navigating Tax and Audit related issues with HA TAX
Since there is a lot to know about tax audits & their related processes HA doesn’t want you to invest your precious business time in looking for or managing such a job.
Our finest expert team which has been in this field for ages is here to make things comfortable for you.
We promise to give you get your taxation work done before the due dates as with our digital mobile and desktop application one can select service, set deadline dates, and continuously monitor the work progress.
We assure you to extend the top-notch tax and audit support service at an affordable cost.
Advantages of Standards in Auditing
To establish uniformity in the system Auditing Standards are set up.
Quality of financial information the flows out of firm will be more refined & accurate.
All compliances can be met which can prevent any penalty or error.
Auditors increase shareholders trust towards the company.
It improves management integrity and more.
How Auditor report his observation?
Auditors report their findings in a prescribed format which is called Form 3CA or in Form 3CB and the comprehensive report is stated over Form 3CD
What is the GST Audit procedure?
GST audit procedure is just like any other auditing.
The government has given the option to carry out GST audits in two ways, that is Audit is carried out by CA/ CMA which requires a GSTR-9 form and the other is by tax authorities (which can be ordered by Commissioner or by Depty/ Assistant Comissioner). As per the new amendments GST turnover limits have been increased to Rs. 2 crores.
Remember 31st December is the last date of filing an annual GST return.
