Partnership Firm Audit :
Partnership Act, 1932 does not provide compulsory audit of Partnership Firms in India. But on satisfying the prescribed criterion, partnership firms are required to get their accounts audited under the provisions of Income Tax Act, 1961. Many partnership firms voluntarily gets their accounts audited as audited accounts helps in proper valuation of goodwill, distribution of share of the deceased Partner to their legal heirs etc. The audited accounts are also useful to get the loan sanctioned from the banks. The audit should be carried out as per the terms of partnership deed and Partnership Act.