What is Tax Audit & What role a Chartered Accountant plays in that?

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Bashmakh Co (Chartered Accountant)

• What is Tax Audit ?

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Chartered Accountant
https//bashamakh.co/
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What is Tax Audit What role a Chartered
Accountant plays in that?
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What Is Tax Audit?Tax audit is an investigation
of your tax return by the Internal Revenue
Service (IRS to verify that your earnings and
deductions are correct.
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What is the origin of a Chartered Account?
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Many of us may be aware that the very first need
of a Best Chartered Accountant was due to a
requirement of examining of books of
accounts.The Indian Constitution was of the
opinion that there should be an Authority who
should take up the responsibility of the
correctness of the books of accounts of the
corporate.With such intention, our Constitution
decided to form an official body of accountants
those are experts in knowing the accounting
protocols and on whom the reliance could be
placed. A Chartered Accounts conducts an Audit
procedures and signs an Audit report prepared by
him based on his/her observations and analysis
and such Audit report provides a ground on which
every official Authority in India places their
reliance and trust.
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What is the meaning of the term Audit?
Chartered Account
The term Audit means an official inspection of
the books of accounts and accounting reports in
order to express true and fair view and thus
giving reliability to investors as well as share
holders of an organization. It is also referred
to a systematic review or assessment of something.
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What are the different types of Audit being
conducted?
There are various kinds of audit being conducted
under different laws such as company
audit/statutory audit conducted under company law
provisions, cost audit, stock audit etc.
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Why is Audit compulsory in some scenarios?
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Income tax law mandates an audit called Tax
Audit for Some Scenarios. As the name itself
suggests, tax audit is an examination or review
of accounts of any business or profession carried
out by the taxpayers from an income tax point of
view.Tax Audit is conducted to ensure proper
maintenance and correctness of books of accounts
and certification of the same is done by a Tax
Auditor.In case of a tax audit, the auditor,
after a methodical examination of the books of
accounts, reports observations or discrepancies
in the periodical Audit report prepared by
him.From the preparedness of the Audit report,
it enables the Tax authorities in verifying the
correctness of income tax returns file thereby
cross checking the calculations and verification
of total income, claim for deductions etc.A
person becomes eligible of having carried out a
tax audit only if the sales, turnover or gross
receipts of the business exceeds Rs. 1 crore in a
financial year.
Why is Audit compulsory in some scenarios?
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If you are looking chartered accountant for Tax
Audit and Consultation so you can contact call us
anytime at this number (91) 8779526602. Thank
You
https//bashamakh.co/