What is a Statutory Audit of an LLP?
A statutory audit of a Limited Liability Partnership (LLP) is a yearly check of its books of accounts by an independent Chartered Accountant (CA). The audit is required by the Limited Liability Partnership Act, 2008 and the LLP Rules, 2009. The auditor checks whether the accounts show a true and fair view of the LLP's financial position, and gives a written Auditor's Report.
The rule for an LLP is different from the rule for a company. A company must be audited every year. An LLP needs a statutory audit only when it crosses the limits set by law. Even when an audit is not required, the LLP must still maintain proper books and file its annual forms.
CA Arpit Gupta provides audit and compliance services for LLPs, from checking the audit limit to filing the forms with the Registrar of Companies (ROC).
When is a Statutory Audit Required for an LLP?
An LLP must get its accounts audited if either of these conditions is met in any financial year:
| Condition |
Limit |
|
Annual turnover
|
More than INR 40 lakh
|
|
Total contribution of the partners
|
More than INR 25 lakh
|
If both the turnover and the contribution are within these limits, a statutory audit is not compulsory. But the LLP may still choose a voluntary audit, which is useful for a bank loan or an investor.
Note: Turnover means the total income from the business of the LLP in the year. Contribution means the capital that the partners have put in, as per the LLP Agreement and the records filed with the ROC.
Who Can Audit an LLP?
Only a practising Chartered Accountant or a firm of CAs can audit an LLP. The auditor must be independent. A partner or designated partner of the LLP cannot be its auditor, and a person with a conflict of interest should not accept the work.
When we take an audit, we check our independence first. If there is any issue, we will tell you honestly.
What Are the Annual Compliance Forms for an LLP?
Every LLP, whether it has an audit or not, must file these forms every year:
| Form |
What It Is |
|
Form 11
|
Annual Return
|
|
Form 8
|
Statement of Account and Solvency
|
|
DIR-3 KYC
|
KYC of designated partners with DIN
|
|
ITR-5
|
Income Tax Return of the LLP
|
An LLP with no business and no income must still file Form 11, Form 8 and the Income Tax Return.
Note: Dates can change through government notices. Please confirm the current dates with us.
What Documents Are Needed for an LLP Statutory Audit?
- LLP Agreement and all changes made to it
- Certificate of Incorporation, PAN and TAN of the LLP
- Trial balance and ledgers
- Bank statements for the full year
- Sales and purchase invoices
- Expense vouchers
- Fixed asset register and purchase papers
- Stock details, if any
- Loan statements and agreements
- Debtor and creditor lists with balances
- Partners' capital, drawings and remuneration details
- GST returns, TDS returns and tax payment challans
- Salary, PF and ESI records
- Details of related party dealings
- Previous year's audited accounts, Form 8, Form 11 and Income Tax Return
- Details of any DIN and DPIN KYC status of the designated partners
If your books are not complete, we can help you write and correct them before the audit.
How Does Our LLP Audit Process Work?
- Call or WhatsApp us on +91-7081220600
- Tell us about your LLP like type of business, turnover, partners' contribution and the filing status
- We check if a statutory audit is needed for your LLP this year
- We check our independence and share the proposal and fee
- The LLP appoints us as auditor by a partners' decision and a letter of appointment
- We share the document list and the audit timeline
- You send the books and records
- We audit the accounts and check entries, balances, bank records, partners' accounts and tax dues
- We discuss the findings and the corrections needed
- We finalise the financial statements and the Auditor's Report with UDIN
- We prepare and file Form 8, along with Form 11 and the Income Tax Return
- We remind you about the next due dates
Why Choose CA Arpit Gupta for LLP Audit?
- Practising Chartered Accountant
- Clear limit check
- Complete filing Form 8, Form 11, DIR-3 KYC and ITR-5 from one place
- Help with old defaults
- Honestly we tell you about errors and risks in your accounts
- One CA for all needs
- We explain every point clearly
- Easy contact
Get Your LLP Audit and Filing Done on Time
Do not let a no-cap late fee build up. Share your LLP details with CA Arpit Gupta, and we will check your audit needs, complete the audit and file your forms.
Call or WhatsApp CA Arpit Gupta at: +91-7081220600.
