Statutory Audit and Tax Audit
What is the meaning of statutory audit?
A statutory audit is conducted mandatory according to law to review the accuracy and transparency of the companies financial statements and records.
Who should be carrying out statutory act?
All the companies registered under Companies Act, 2013 needs to do statutory audit.
What is the meaning of tax audit?
A tax audit is the process of verifying the financial records of assesses to determine their accurate taxable income.
Who conducts the work of tax audit?
A practising Chartered Accountant performs the tax audit of the companies and individuals.
Difference between Statutory Audit and Tax Audit
“Statutory Audit” and “Tax Audit” are two essential types of audits that any company must go through. While both audits involve the examination of financial records, their objectives, scopes, and the entities involved differ significantly. Statutory audits focus on financial statement accuracy and compliance with accounting standards, while tax audits focus on tax compliance and the correct calculation of taxes owed by the taxpayer.