Audit of LLP
Section 34 of the LLP Act 2008 addresses the maintenance of books of account, other records, and audit requirements. According to this section, the following requirements must be met:
- Every LLP must maintain proper books of account as per Rule 24 of the LLP Rules 2009. These accounts should detail the LLP’s affairs for each year it is in operation, using either a cash basis or accrual basis and following the double-entry system of accounting. These records must be kept at the registered office for the specified period.
- Within 30 days from the end of the first six months of the financial year, every LLP must prepare and file the Statement of Account and Solvency in LLP Form 8 with the registrar. This statement must be signed by the designated partners of the LLP for the relevant financial year.
- As stated in Section 34(4) of the LLP Act 2008, the accounts of every LLP must be audited in accordance with Rule 24 of the LLP Rules 2009. Any LLP with a turnover exceeding forty lakh rupees or a contribution exceeding twenty-five lakh rupees in any financial year must have its accounts audited.
The Designated Partners responsible for the compliances of LLP will be required to appoint the Auditor
- At any time for the first financial year but before the end of the first financial year,
- At least 30 days prior to the end of each financial year (other than the first financial year),
The partners may appoint an auditor or auditors where the designated partners have the power to appoint and have failed to appoint.
Further section 35 of the LLP Act 2008, Every LLP shall file an annual return in LLP Form 11, duly authenticated with the Registrar within sixty days of closure of its financial year in such form and manner and accompanied by such fee as may be prescribed.
Our Team with Qualified Chartered Account will assist the LLP in complying with LLP Audit requirements and Filing of LLP Form 8, LLP Form 11, with Registrar. We also provide the Income Tax Return filing and other compliance Services to LLP’s.
Why Choose Us
Choosing KMG CO LLP means choosing a partner dedicated to your business’s financial health. We offer:
- Expertise: Our team consists of highly qualified Chartered Accountants with extensive experience in LLP auditing.
- Reliability: We ensure all compliance requirements are met accurately and on time.
- Personalized Service: We tailor our services to meet the unique needs of your business.
- Peace of Mind: With KMG CO LLP, you can focus on growing your business while we handle the complexities of financial compliance.
We Are Unique
KMG CO LLP stands out in the field of LLP auditing for several reasons:
- Innovative Solutions: We use the latest technology and methodologies to ensure efficient and accurate audits.
- Client-Centric Approach: Our services are designed around your specific needs, ensuring you receive the best possible support.
- Proactive Communication: We keep you informed at every step, ensuring transparency and trust.
- Comprehensive Support: Beyond audits, we offer a range of compliance services to support your business’s financial health.
An audit for an LLP ensures that the financial statements are accurate and comply with the legal and regulatory requirements. It provides assurance to stakeholders about the financial health and transparency of the LLP.
An LLP must have its accounts audited if its turnover exceeds ₹40 lakh or if its contribution exceeds ₹25 lakh in any financial year, as per Section 34(4) of the LLP Act 2008.
The designated partners are responsible for appointing the auditor. For the first financial year, the auditor should be appointed any time before the end of that year. For subsequent years, the appointment must be made at least 30 days before the end of the financial year.
An LLP must maintain proper books of account on either a cash or accrual basis, and according to the double-entry system of accounting. These records must be kept at the LLP’s registered office.
LLP Form 8 is the Statement of Account and Solvency, which every LLP must prepare and file with the Registrar within 30 days from the end of six months of the financial year. This form must be signed by the designated partners.
LLP Form 11 is the annual return that every LLP must file with the Registrar within 60 days of the end of the financial year. It must be duly authenticated and submitted in the prescribed form and manner.
Failure to get the accounts audited can result in penalties and legal repercussions for the LLP and its partners. It may also affect the LLP’s credibility and ability to secure financing.
Yes, if the designated partners fail to appoint an auditor, the partners of the LLP have the authority to make the appointment.
