Audit of OPC

Statutory Audit of OPC is mandatory however a tax audit is required when the turnover of an OPC exceeds Rs. One Crore.

Overview

Auditing is a systematic examination of books of accounts, documents, and vouchers to verify the financial position of the company. The need of the audit arises to ensure the true and fair view of accounts of the company. Every company registered under the Companies Act, 2013 required to appoint an auditor to audit the accounts every year.

Types of Audit Required

law which ensures the correct view of the book of accounts to the public. Every company has to appoint an auditor within 30 days from the date of incorporation. As per the Companies Act, the company required to appoint a qualified chartered accountant as an auditor. Irrespective of the paid up share capital or turnover of the company, financial accounts needs to be audited every financial year.
• Tax Auditing: Every OPC registered with the MCA (Ministry of Corporate Affairs) is under an obligation to comply with the tax audit if turnover exceeds Rs.50 lakhs for services and Rs.2 crores for other business. A qualified chartered accountant has to be appointed to get tax audit done.

Related: Search all OPC Registered with MCA (Companies Master Data)

Appointment of auditor

Removal of an auditor

The auditor can be removed from the office either at the end of the tenure period of by resigning from the company.

If the maximum office holding period gets expired then such auditor will be removed from the office after the end of the tenure period. In other business entities the auditor can be appointed again by virtue of mandatory rotation of auditor, but in case of OPC such provision is not applicable.

If in case auditor resigns on its own before expiration of the tenure period then auditor shall file the statement containing the reason to his resignation to the company and ROC as well within 30 days from the date of resignation.

Penalty provisions