A statutory audit is legally required to check the accuracy of a company's or government's financial statements and records. The main purpose of the audit is to determine whether an organization provides a fair and accurate representation of its financial position by examining` information such as bank balances, bookkeeping records, and financial transactions.
The term audit usually refers to the financial statement audit. An audit is an examination of books, accounts, statutory records, documents and vouchers of an organization to ascertain how far the financial statements, as well as non-financial disclosures, present a true and fair view of the concern. Almost all companies receive a yearly audit of their financial statements, such as the income statement, cash flow statement and balance sheet. Lenders often require the results of an external audit annually as part of their debt covenants. The rules regarding company audit are contained in the Companies Act, 2013.
A Limited Liability Partnership is a type of partnership in which partners’ liability is very limited. In limited liability, the term “limited’’ denotes that there is limited liability and partners are not entirely responsible for the company. In an LLP, one partner is also not liable for another partner's misconduct or negligence. This is the fundamental difference from that of an unlimited partnership.
A private limited company is a popular legal entity in India. Private limited companies in India are governed by the Ministry of Corporate Affairs (MCA) under the Companies Act, 2013. Under this act, it mandatory for every company, post-incorporation, has to fulfill some, mandatory legal obligations. The compliance requirements are complex with each falling on different due dates and failing to meet them in a timely manner can greatly impact a company.
After the registration of the public limited company, the next step is to file annual compliances under the (ROC). Public limited companies are required to file annual tax compliances. All registered companies with the Ministry of Corporate Affairs need to file Annual Returns and Statement of Accounts for every Financial Year. It is mandatory for Public limited companies to file a return irrespective of whether it has done any business. Failure in filing compliance on time leads to heavy penalties on business.
XBRL stands for eXtensible Business Reporting Language. It is an electronic communication form of communication for business and data. XBRL is in many countries and its use is increasing all over the world In future XBRL is set to become the standard way of recording, storing and transmitting business financial information. XBRL language can be used throughout the world, whatever the language of the country concerned, for a wide variety of business purposes.
A section-8 company is registered under the central government and the Ministry of Corporate Affairs. The companies registered under this act apply their profits for the furtherance of social cause and do not pay to their members. Any company whether Private limited, LLP and Public Limited which work for the objective of social welfare without any objective of earning profit or dividend can function as the section-8 company registration.