Question
What is the difference between statutory audit, tax audit and internal audit?
Answer
Bottom line: Statutory audit applies to every company, tax audit is turnover-based, and internal audit applies to larger companies.
1. Statutory audit
Mandatory for every company under the Companies Act, regardless of turnover.
2. Tax audit
Under Section 44AB, required when business turnover exceeds ₹1 crore (₹10 crore if cash is 5% or less), or professional receipts exceed ₹50 lakh.
3. Internal audit
Under Section 138, mandatory for listed and larger unlisted or private companies above prescribed size thresholds.
Check audit applicability with our Turnover & Audit Calculator.
This answer is general information based on the law as it stood when written and is not professional advice on your specific situation. Verify the current position and consult a qualified professional before acting. See our disclaimer.