What we do
Our work in this practice group is structured around the records, deadlines, and decisions involved:
- Independent review of LLP books and financial records.
- Assessment of financial statement accuracy and completeness.
- Identification of accounting discrepancies and control weaknesses.
- Review of applicable statutory and tax compliance matters.
- Improved reliability of financial reporting.
- Audit documentation and reporting support.
- Guidance on identified accounting and compliance observations.
How the engagement works
LLP audit requirements are primarily governed by the Limited Liability Partnership Act, 2008 and applicable rules. Under Section 34 of the LLP Act, an LLP is required to maintain proper books of account and prepare a Statement of Account and Solvency. Audit of LLP accounts is required where prescribed thresholds or other conditions under the applicable rules are met. The exact applicability should be determined based on the LLP’s turnover, contribution, and other relevant circumstances for the financial year.
Scenario 1: An LLP crosses the applicable turnover or contribution threshold and requires a statutory audit of its accounts.
Scenario 2: An LLP wants an independent review of its books and financial statements before completing annual filings.
Scenario 3: Partners want to identify accounting discrepancies, unusual transactions, or weaknesses in financial controls.
Scenario 4: An LLP requires audited financial statements for banking, lending, investment, business restructuring, or other institutional requirements.
Scenario 5: An LLP wants professional assistance with audit finalization and preparation of documents required for its annual statutory compliance.
Audit Applicability Assessment
We review the LLP’s turnover, contribution, financial records, and other relevant information to determine whether audit is applicable under the prescribed LLP requirements.
Books & Accounting Records Review
We examine the LLP’s ledgers, vouchers, invoices, bank statements, journal entries, fixed assets, receivables, payables, capital accounts, and other relevant records.
Financial Statement Review
We review the Statement of Account and Solvency, income and expenditure or profit and loss information, balance sheet, schedules, and supporting financial records.
General questions
01What is an LLP audit?
An LLP audit is an independent examination of an LLP’s books of account, financial statements, transactions, and relevant records in accordance with the applicable LLP law and auditing requirements.
02Is audit mandatory for every LLP?
No. LLP audit applicability depends on the conditions and thresholds prescribed under the Limited Liability Partnership Act, 2008 and applicable rules. The LLP’s turnover, contribution, and other circumstances should be reviewed for the relevant financial year.
03What is the audit threshold for an LLP?
Under the applicable LLP Rules, audit requirements generally depend on whether the LLP’s turnover exceeds the prescribed threshold or the partners’ contribution exceeds the prescribed limit. The thresholds and conditions should be checked against the rules applicable to the relevant financial year.
04What documents are required for an LLP audit?
Common records include the trial balance, general ledger, bank statements, sales and purchase records, invoices, expenses, fixed asset records, partner capital accounts, loan statements, tax records, and other financial schedules and supporting documents.
05What is a Statement of Account and Solvency?
The Statement of Account and Solvency is a statutory financial statement prepared by an LLP under the LLP Act and applicable rules, reflecting the LLP’s financial position and solvency information.
06Does an LLP audit cover partner accounts?
Yes. Where relevant, audit procedures may include review of partner capital contributions, drawings, remuneration, interest, profit-sharing, current accounts, and other transactions between the LLP and its partners.
07Can an LLP audit be required for bank or loan purposes?
Yes. Even where statutory audit is not mandatory, a bank, lender, investor, or other institution may request audited financial statements or an independent financial review as part of its own requirements.
08Can you handle the complete LLP audit process?
Yes. We can assist with audit applicability assessment, planning, accounting record review, financial statement audit, partner account review, compliance observations, finalization, and applicable audit reporting.
