Audit under LLP Act

Audit under the Limited Liability Partnership Act, 2008 is a statutory examination of the books of account of an LLP to ensure that financial statements present a true and fair view and comply with the LLP Act, LLP Rules, and the partnership agreement.

Unlike companies, audit for LLPs is not universal — it is triggered when turnover or contribution crosses prescribed thresholds. However, every LLP is required to maintain proper books of account and file annual returns with the Registrar, regardless of audit applicability.

We provide complete LLP audit and compliance services — covering statutory audit, tax audit, ROC filings (Form 8 and Form 11), and partner-level reporting — to help LLPs stay compliant, transparent, and ready for funding, conversion, or restructuring.

Our LLP Audit Services

Statutory Audit of LLP

Independent audit of LLP accounts under the LLP Act, 2008 and Rule 24 of the LLP Rules, 2009 once turnover or contribution thresholds are crossed.

Tax Audit u/s 44AB

Tax audit for LLPs whose turnover or gross receipts exceed prescribed limits under the Income Tax Act, with Form 3CB-3CD reporting.

Form 8 & Form 11 Filings

Preparation and filing of Statement of Account & Solvency (Form 8) and Annual Return (Form 11) with the ROC.

Books of Account Review

Verification of mandatory books, vouchers, ledgers, and supporting records on cash or accrual basis as adopted by the LLP.

Partners' Capital & Drawings

Review of contribution accounts, drawings, profit-sharing, remuneration, and interest on capital as per LLP agreement.

LLP Agreement Compliance

Examination of compliance with terms of the LLP agreement, including profit ratio, contribution, and decision-making rules.

Conversion & Restructuring Audit

Audit and certification support for LLP-to-company conversion, partner changes, and capital restructuring transactions.

Compliance Health Check

Periodic review of LLP statutory compliance, ROC filings, KYC of partners, and remediation of past defaults.

Our Audit Process

Applicability Check

Assessment of turnover, contribution, and tax thresholds to determine audit applicability under LLP and IT Act.

Engagement & Planning

Acceptance, scope finalisation, review of LLP agreement, and audit plan based on business activity.

Audit Execution

Verification of books, partner accounts, statutory dues, and substantive testing of transactions.

Reporting

Issuance of audit report, signed financials, and recommendations for partners and management.

ROC & Tax Filings

Support in filing Form 8, Form 11, income tax return, and tax audit report on respective portals.

Why Audit under LLP Act Matters

✓ Mandatory compliance once thresholds are crossed

✓ Verifies true and fair view of LLP financials

✓ Ensures correct profit allocation among partners

✓ Avoids heavy late-filing fees on Form 8 and Form 11

✓ Reduces risk of MCA and ROC penalties

✓ Strengthens credibility with banks and investors

✓ Supports conversion, restructuring, and exits

✓ Improves financial discipline and partner trust

FAQs on Audit under LLP Act

Is audit mandatory for every LLP?

No. Audit is mandatory under Rule 24 of the LLP Rules, 2009 only when an LLP's turnover exceeds the prescribed threshold or its contribution exceeds the specified limit in any financial year. Below these thresholds, audit is optional, but proper books of account and annual filings are still mandatory.

Who can be appointed as the auditor of an LLP?

Only a Chartered Accountant in practice or a firm of Chartered Accountants can be appointed as the auditor of an LLP. The auditor is appointed by the designated partners through a written communication and must remain independent of the LLP's management.

What is the difference between Form 8 and Form 11?

Form 11 is the Annual Return of an LLP that captures details of partners and contribution and is generally due within 60 days of the close of the financial year. Form 8 is the Statement of Account & Solvency that contains financial information and a solvency declaration, and is generally due within 30 days from the end of six months of the close of the financial year.

Is tax audit applicable in addition to LLP audit?

Yes. Even if an LLP is audited under the LLP Act, a separate tax audit under Section 44AB of the Income Tax Act may be required if its turnover or gross receipts exceed prescribed limits. In such cases, both LLP audit and tax audit are conducted, often by the same auditor.

What happens if an LLP fails to file Form 8 and Form 11 on time?

Late filing of Form 8 and Form 11 attracts daily additional fees per day of delay, with no upper cap, which can quickly escalate into substantial amounts. Continued non-compliance may also lead to the LLP being marked as defaulting and possible action against designated partners.

Are LLPs required to maintain books on accrual basis?

LLPs may maintain books either on cash basis or accrual basis as adopted in the LLP agreement. However, once an LLP becomes liable to audit or tax audit, the auditor will examine consistency in the basis adopted and ensure that statutory disclosures are appropriately made.

What records must an LLP maintain?

Every LLP must maintain proper books of account showing receipts and payments, sales and purchases, assets and liabilities, and statements of cost of goods purchased, inventories, work-in-progress, finished goods, and cost of goods sold, along with supporting vouchers, contracts, and partner-related records, for the period prescribed under the LLP Rules.

Stay LLP-Compliant Without the Stress

Partner with our LLP audit experts to manage statutory audit, tax audit, and ROC filings end to end.

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