What is a Statutory Audit of Partnership Firms?

In a tax audit, a Chartered Accountant checks the firm's accounts and tax records and gives a report in the prescribed forms:

• Form 3CA or Form 3CB: The audit report. Form 3CB is used for firms that are not otherwise required to get their accounts audited under any other law
• Form 3CD: A detailed statement of particulars, with more than 40 clauses, such as method of accounting, depreciation, loans, payments in cash, TDS, GST details, partner payments and more

The report is filed online on the Income Tax portal, and the firm's Income Tax Return (ITR-5) is filed after it.

CA Arpit Gupta helps partnership firms check whether an audit is needed, complete the tax audit or voluntary audit, and file the Income Tax Return on time.

Why Might a Partnership Firm Choose a Voluntary Audit?

Even when the law does not require it, many firms take an audit because it helps in:

• Getting a bank loan or a higher limit
• Admitting or removing a partner
• Settling disputes between partners with clear numbers
• Applying for tenders where audited accounts are asked
• Finding errors and leakage in the business
• Taking an investor or franchise deal
• Visa or foreign applications where proof of income is needed
• Closing or selling the business with clear accounts

The Partnership Deed can also say that the accounts must be audited every year. If it does, the firm should follow it.

What Documents Are Needed for the Audit of a Partnership Firm?

• Partnership Deed and all changes
• Registration certificate of the firm, if registered
• PAN and TAN of the firm
• Trial balance and ledgers
• Bank statements for the full year
• Sales and purchase invoices
• Expense vouchers and bills
• Fixed asset register and purchase papers
• Stock details and stock valuation records
• Loan statements and agreements
• Partners' capital, drawings and remuneration records
• GST returns and reconciliation
• TDS returns and challans
• Salary, PF and ESI records
• Debtor and creditor lists with balances
• Previous year's audited accounts and Income Tax Return

If your books are not up to date, we can help you complete them before the audit begins.

How Does Our Audit Process Work?

1. Call or WhatsApp us on +91-7081220600
2. Tell us about your firm: nature of business, turnover and the past audit status
3. We check if a tax audit is needed for your firm this year, or if a voluntary audit will help
4. We share the proposal and fee after checking our independence
5. We send the list of documents and a timeline
6. You share the books and records
7. We audit the accounts and check entries, balances, partners' accounts and tax details
8. We discuss the findings and the corrections needed
9. We finalise the accounts, the audit report and Form 3CD, with UDIN
10. We file the audit report and the ITR-5 on the Income Tax portal
11. We remind you about the next due dates

What Mistakes Should You Avoid?

• Thinking that no audit is ever needed for a firm
• Missing the tax audit when the turnover crosses ₹1 crore
• Not checking the 5% cash limit before using the higher limit of ₹10 crore
• Leaving the presumptive tax scheme without checking the results
• Paying partners' remuneration and interest that the deed does not allow
• Not keeping bank reconciliation and stock records
• Mixing partners' personal expenses with the firm's expenses
• Filing the audit report after the due date
• Not matching the figures in GST returns, books and the Income Tax Return

Why Choose CA Arpit Gupta for Partnership Firm Statutory Audit?

• Practising Chartered Accountant
• Honestly we tell you if an audit is needed, so you do not spend on what is not required
• Complete tax filing
• Help with presumptive tax planning
• Partners' account clarity
• One CA for all needs
• Clear conversation, no confusing terms
• Easy contact

Get Your Firm's Audit Done on Time

Do not let a late audit turn into a penalty. Share your firm's details with CA Arpit Gupta, and we will check your audit needs and complete the audit and the return.

Call or WhatsApp CA Arpit Gupta at: +91-708122060.