Audit Under the LLP Act

Q: When is audit mandatory for an LLP?

An LLP must have its accounts audited once annual turnover or capital contribution crosses the prescribed threshold under the LLP Act. Below this, audit is generally optional.

Q: What is the Statement of Account and Solvency?

An annual filing declaring the LLP's financial position and ability to meet liabilities. Where audit applies, it should be consistent with audited financial statements.

Q: Can an LLP below the audit threshold still choose to get audited?

Yes. LLPs below the mandatory threshold can voluntarily opt for an audit for additional assurance or to satisfy lender or investor requirements.

Q: What happens if an LLP fails to comply with audit requirements?

Failure to comply can result in penalties for the LLP and designated partners, and complications when filing the Statement of Account and Solvency or annual return.

Q: Does LLP audit cover tax audit requirements as well?

No, the LLP Act audit and Income Tax Act tax audit are separate requirements with different thresholds. An LLP may require both depending on circumstances.

Audit Compliance for Limited Liability Partnerships

Limited Liability Partnerships are required to have their accounts audited once turnover or contribution exceeds prescribed thresholds under the LLP Act. This audit ensures that financial statements give a true and fair view of the LLP's affairs and supports accurate filing of annual returns and statements of account.

Our LLP audit services are designed to keep partnerships fully compliant while providing clear insight into financial performance. This service complements our tax audit services and broader audit and assurance offering, giving LLPs a coordinated approach to all their audit obligations.

Our LLP Act Audit Services

Applicability Assessment

Determining whether your LLP crosses the turnover or contribution threshold that triggers mandatory audit under the LLP Act.

Statutory LLP Audit

Conducting the audit of LLP financial statements in accordance with applicable accounting and auditing standards.

Statement of Account & Solvency Review

Verifying the accuracy of the Statement of Account and Solvency before filing with the Registrar.

Partner Capital Account Verification

Reviewing partner capital accounts, contributions, and profit-sharing arrangements for accuracy.

Books of Account Review

Examining the LLP's books of account, vouchers, and supporting financial records.

Annual Filing Support

Supporting timely filing of audited financials alongside annual return requirements under the LLP Act.

Our Approach

Confirming whether the LLP meets the audit applicability threshold
Reviewing books of account, partner contributions, and capital accounts
Performing audit procedures consistent with applicable standards
Verifying the Statement of Account and Solvency for accuracy
Preparing the audit report and supporting timely regulatory filing

Benefits of a Properly Conducted LLP Audit

Ensures compliance with mandatory audit thresholds under the LLP Act
Builds confidence among partners regarding financial accuracy
Supports accurate and timely annual filings with the Registrar
Identifies discrepancies in partner accounts or contributions
Reduces the risk of penalties for non-compliance
Strengthens the LLP's credibility with lenders and business partners

Why Choose Us?

Clear assessment of audit applicability based on turnover and contribution
Experienced in handling LLP-specific audit and reporting nuances
Coordinated support with tax audit and other compliance services
Timely delivery to support annual return filing deadlines
Practical advisory beyond just the audit report

Frequently Asked Questions

When is audit mandatory for an LLP?

An LLP is required to have its accounts audited once its annual turnover or capital contribution crosses the prescribed threshold under the LLP Act. Below this threshold, audit is generally optional, though the LLP must still maintain proper books of account.

What is the Statement of Account and Solvency?

The Statement of Account and Solvency is an annual filing that LLPs must submit, declaring the LLP's financial position and confirming its ability to meet liabilities as they fall due. Where audit applies, this statement should be consistent with the audited financial statements.

Can an LLP below the audit threshold still choose to get audited?

Yes. LLPs below the mandatory audit threshold can voluntarily opt for an audit if partners want additional assurance over financial statements, or if lenders, investors, or other stakeholders request audited financials.

What happens if an LLP fails to comply with audit requirements?

Failure to comply with mandatory audit requirements where applicable can result in penalties for the LLP and its designated partners, and may also create complications when filing the annual Statement of Account and Solvency or annual return.

Does LLP audit cover tax audit requirements as well?

No, the LLP Act audit and the Income Tax Act tax audit are separate requirements with different objectives and thresholds. An LLP may be required to undergo both audits depending on its turnover and circumstances, and we coordinate both engagements where applicable.

Stay Compliant with LLP Audit Requirements

Professional audit services tailored to the specific needs of your LLP.