Statutory audit, tax audit and internal audit

Three audits with different legal bases, owners and outputs.

	Statutory audit	Tax audit	Internal audit
Legal basis	Companies Act (and the LLP Act for LLPs above the prescribed limits)	Income-tax Act, Section 44AB, above the prescribed turnover or receipts limits	Companies Act, Section 138, for the prescribed classes of company; otherwise by choice
Who must have one	Companies, and LLPs above the prescribed limits	Businesses and professionals above the prescribed limits, or under certain presumptive-tax conditions	Prescribed companies; any business that wants a controls review
Who performs it	An independent authorised professional	an authorised professional	an authorised professional, cost accountant or other professional appointed by the board
Main output	The auditor's report on the financial statements	The tax audit report (Form 3CA or 3CB with Form 3CD)	Internal audit reports and recommendations to management

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General guidance only. Suitability and current statutory requirements must be reviewed for your circumstances.