What is Auditing?
Auditing of a business is being done to analyse the financial health of a business or an Organization. The respective Auditor understands the propositions before him/her for analysis, procures evidence, evaluates the same, and generates an opinion on the basis of his analysis which is conveyed in the form of Auditing report.
What is the requirement for appointing an auditor?
It is mandatory for every company to appoint its Auditor at the time of their first Annual General Meeting (AGM). and the decision to appoint an Auditor relies on the Board of the Company. And after appointment of an Auditor then that Auditor holds the office for at least 5 consecutive years each for individual and two terms of consecutive five (5) years in case of Auditor Firm.
When do you need an Audit?
Auditor is need when-
-A professional is earning more than 15 Lacs in a year.
-If you own a Private Limited Company, or
-Other businesses having turnover more than Rs. 1 Cr.