After registering a private limited company, there are many compliances that the company has to follow under the Companies Act, 2013 (‘Act’). One such mandatory requirement a company must follow is to conduct an audit irrespective of its turnover or nature.
A company audit means the inspection of its books of account to ensure that they are correct. The company must appoint an auditor to conduct the audit. The objective of an audit of the company’s financial statements is to allow the auditor to express his/her opinion.
The auditor will have to check various books of accounts, vouchers and bills to check if they are accurate and properly maintained. The audit of a private limited company is an annual compliance requirement under the Act and Company Law Rules.
Types of Audit Of A Private Limited Company
There are different types of audits of a private limited company carried out for various purposes. A few important types of audit of a private company are as follows:
Statutory Audit
The statutory audit is a mandatory audit that every private limited company must conduct irrespective of its profit or turnover. A company incurring loss must also conduct a statutory audit. Every private limited…
