Sole Proprietorship Audit

Like partnership firms, sole proprietary concerns are also not legally required to get their financial statements audited by independent financial auditors but on satisfying the prescribed criterion, partnership firms are required to get their accounts audited under the provisions of Income Tax Act, 1961. However, many such concerns get their financial statements audited voluntarily as it helps the sole proprietor to manage its books of accounts properly and the audited books of accounts are relied well by the statutory authority, banks, insurance companies etc.