An LLP is liable to appoint an auditor for Statutory Audit when the turnover exceeds 40 lakhs or the capital contribution exceeds 25 lakhs. When the turnover exceeds 1 crore both Statutory and Tax Audits are required.

A Statutory and a Tax Audit are not a compulsory requirement for all the Limited Liability Partnerships. However, an LLP is liable to get a statutory audit conducted only when it crosses a threshold limit in terms of either Turnover or Capital Contribution and a Tax Audit is mandatorily conducted if the turnover exceeds the threshold.

LLP has a privilege over other entities, with regard to compulsory statutory audit. Other forms of business structures are required to get a statutory audit, irrespective of their contribution or turnover.