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As according to the provisions provided under the Limited Liability Partnership rules every company needs to go through auditing.

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What is the need of Audit in LLP ?

If the partners do not go for auditing they need to account for the LLP statement which gives the Statement of Account.

Appointing an Auditor

Step 1

The Auditing has to start 30 days before the beginning of the next Financial Year which is before 1st March of every Year. The auditor for the same needs to be appointed before the end of the first financial year.

Step 2

The partners designated has the duty to appoint the auditor in the company

Step 3

And if that doesn’t happen, the partners of the company appoints the auditor

Step 4

The auditor is appointed in the office until the new auditor gets appointed in case the partners have given a notice against the appointment of the existing auditor.

Process of Auditing

  • 1

    Step 1

    A practicing Chartered Accountant can be the Auditor of the company.

  • 2

    Step 2

    The auditor needs to write a written consent for agreeing to the criteria given in Section 141 of the company.

  • 3

    Step 3

    After this letter is received the board of director appoints a resolution to appoint the Auditor

  • 4

    Step 4

    The auditor then needs to audit the accounts before the end of the each financial year.

Frequently Asked Questions:

Is every LLP liable to maintain the file accounts?+
Can registrar call for information from LLP?+

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