bnepathshala

 Unit IV  Recent trends in Auditing: Nature and Significance of Cost Audit, Tax Audit, Management Audit.   Tax Audit Tax audit is done by an Auditor on behalf of the Government to make sure that every provisions of Income Tax has been compiled by the assesse or not. Practically it is not possible for the Income Tax department to verify each and every detail of the assesse. Tax audit can be conducted by a Chartered Accountant or any other person who can be appointed as an Auditor u/s 141 of the Companies Act, 2013. Mandatory Tax Audit According to Section(44 AB), provisions relating to Compulsory Tax Audit are as follows − If the total sales or gross receipts of a business during the previous year exceeds Rupees One Crore. If the gross receipt of a profession exceeds Rs. 25 lacs in previous year. If the business or profession of a person is covered under section 44AD, 44AE, 44B, 44BB, 44BBA and 44BBB and assesse claims that his income from said business is less than as compute

  Unit 3 Special Audit, Audit of Banking Companies, Audit of Insurance Companies, Audits of Educational Institutions, Audit of Cooperative Societies, Efficiency Audit, Social Audit etc     Special Audit A Special Audit can be defined as a tightly defined  type of audit  that is conducted in order to probe into a specific area of the organization’s activities. As a matter of fact, it can be seen that this type of audit is mainly initiated by a third party, like a government agency or the tax authority. However, it can also be authorized by any other relevant entity, including any internal authorities that might be in a position to do so. Examples of special audits include Compensation audits, control audits, cost audits, fraud audits, and royalty audits. The Need for A Special Audit Special Audits are mostly needed when some abnormal behavior is suspected within the organization. Mostly, they are called for when it is suspected that the laws and regulations have been overlooked pertaini