We provide Society audit in Patna Bihar Ranchi Jharkhand. Get society auditing services in Patna, Bihar Ranchi Jharkhand. Society is runs for benefit of the society and needy peoples of our society. Societies are not for profit organization means it is a type of NGO (non government organization). Accepting donation from governments, others Companies, foreigners, other individuals is main source of income of the Societies. Society has to do its books of accounts audited by auditors. We will give you all important information about Society auditing services in this article in brief.
Society auditing services
Societies are registered under the rules and regulation of the society act, 1860. Societies are worked for the benefit of the society. Main object of the societies are educational developments, religious development, economical, cultural etc. Societies are not involved in business activities. Societies are not sharing its profit between its members. Income of society is exempted from income tax after getting registration under section 12A but auditing of its books is important. Societies are getting /accept grant or donation from third party so uses of the amount is need to be checked. In societies fraud and misuse of the donation fund is normal, so audit of society’s books of accounts is mandatory. Auditor appointed by the member of the society in general meeting. Filing of the appointment of the auditor before the registrar of the society is mandatory. All books of accounts of society have to be checked by the auditor during audit. After audit auditor has issued audit report. If societies exceeds the limit of the income 1crore than tax audit is compulsory for societies. Auditor of society makes independent inquiry during auditing process. Auditor of society also clears all the details of the members of the society. Auditors check all books of society during auditing process. Societies have to maintain all types of books as per society act like cash book, expenses books, donation book, member’s book, etc. Societies are established and runs for social welfare that why it’s all transactions are clear and easy to understand by any one. Society auditing services is important and mandatory as per the rules and regulation of the law. Audit is done once in a year and as per audit report income tax return is filled by societies.
Procedure of Society Auditing
- Ask for all Documents from the society.
- Checks the details of grants received by society.
- Thoroughly checks the cash and bank accounts documents.
- Balance sheet and profit and loss accounts preparation.
- Checks the all papers of property which is registered in the name of society.
- Audit report issued by auditor.
Documents required in society auditing services
- Bank statements of society.
- Pan card of society.
- Cash vouchers and receipt of society.
- Cash book.
- Expenses related books.
- Members’ books of society.
- Details of donation from outside India.
- Details of grants from government.
- Other documents which is demand by the auditor.
Advantage of Society auditing
- Find out the fraud and inefficiency in society.
- Operational improvement under the organization.
- Increase the value of society.
- Taking out information about profit or loss of society.
- Assessing the tax amount.
- Maintain reputation of the organization.
- Comply with relevant rules.
Disadvantage of Society auditing services
- Extra cost to the organization.
- Some time Chances of fraud.
- Unsuitable change.
Society auditing is done once in a year by the auditor. All documents checks and examine by the auditor and if he thinks that all are proper than he is issued his report. Balance sheet and profit and loss accounts are made and signed by the auditors with his audit reports. Generally in case of society there is no income or income exempted as per section 12 A of the income tax act. But if tax is levied society have to pay the tax amount. Charted accountant is appointed as auditor of the society. So it is good and important for the all society to get audited his all books of accounts by auditor. We will do your wok, no need to visit our office. Send us all documents with sign and stamp through emails. You can pay our fee online.