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MCQ Self Challenge # 0075 on Audit of LLP under various Acts

LLP AUDIT under Various Acts

 

Dear Professional Seniors & Friends,
Warm Greeting!

Here is the Next post of #MCQ on concept based practical professional knowledge on #Audit of LLP under various Acts in a unique manner to be self answered by participants. The detailed answer of these MCQs shall be posted next day for the self assessment of the participants.

MCQ 75.1: ABC and CO LLP, a firm of Professionals has capital of Rs 20 lakhs and turnover of Rs 45 Lakhs during the year 2017-18? Which among the following is correct in relation to audit of LLP?

A) Audit of LLP is required in both LLP and Income Tax Act.
B) Audit under LLP act is required but audit under Income Tax is not required.
C) Audit is not required under both Acts.
D) None of the above.

MCQ 75.2: What if in the above question turnover is Rs 30 Lakhs?

A) Audit of LLP is required in both LLP and Income Tax Act.
B) Audit under LLP act is required but audit under Income Tax is not required.
C) Audit is not required under both Acts.
D) None of the above.

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CA Sanjay Kumar Agrawal
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Answer MCQ Self Challenge # 0075

 

Dear Professional Seniors & Friends,

Warm Greetings!

 

This post of MCQ is on provisions relating to audit under various acts.

 

Answer to MCQ 75.1: C) Audit is not required under both Acts.

 

Answer to MCQ 75.2: C) Audit is not required under both Acts.

 

Practical Analysis for MCQ 75.1& 75.2:-

  • LLP’s in India are governed by LLP Act which is altogether having different rules & regulations as compared to companies Act & Income Tax Act.
  • It is necessary to understand that since the law governing all types of organisation structures are different, requirement of audit is also different as per different laws.
  • The law relating to each type of organisation is described below
OrganisationCompaniesLLP’sPartnership Firms of Individuals
LawCompanies ActLLP ActPartnership Act
AuditMandatory in all casesMandatory if Turnover exceeds Rs 40 Lakhs and Contributions exceeds Rs 25 LakhsNot required
  • However audit under income tax act is applicable to all types of organisation structure and is independent to rules & regulations covered under different laws.
  • As per Income Tax act, every person is required to get its accounts audited if its turnover exceeds Rs 1 crore in case of business or Rs 50 lakh in case of professionals.
  • Based on the above analysis, correct answer MCQ 75.1: C) Audit is not required under both Acts.

 

  • Correct answer MCQ 75.2 : C) Audit is not required under both Acts.

 

(Disclaimer: The objective of the MCQ post is just to discuss the concept, it may happen, by change of facts, the answer may be different. Please do not treat this as professional opinion; you can definitely have your own opinion.)

 

Sincere Regards!

 

CA Sanjay Kumar Agrawal

Mobile: 9810116321 WhatsApp:8799772245

 

To access MCQ posts regularly, please Join Telegram Channel:
https://t.me/caSanjayKumarAgrawal

 

For All MCQ post please click on:

Webpage: http://www.casanjay.me/

Facebook: https://www.facebook.com/CA.Sanjay.K.Agrawal/

Linkedin: https://www.linkedin.com/in/ca-sanjay-kumar-agrawal/

 

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