MCA proposed to do away with Statutory Audit as per the Companies Act 2013 for small companies

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MCA proposed to do away with Statutory Audit as per the Companies Act 2013 for small companies

The profesional of auditing is all set to change. Already the tax audit limit under Income Tax Act has been raised to Rs. 10 Cr if the assessee is doing more than 95% transactions in digital mode. Now it’s the amendment that is likely to be there in the Companies Act.
As per news updates, the Ministry of Corporate Affairs (MCA) might do away with Statutory Audit as per the Companies Act 2013 for small companies. This decision has been taken in line with the ease of doing business.
In order to promote, ease of doing business,  first Turnover limit of Tax Audit was increased, then GST Audit was abolished, and now the government is planning to do away with Statutory Audit for certain classes of companies.
Once Statutory Audit for companies is done away with, companies will no more need CA Certification on their Financials and the Director of the company can self certify the documents and upload it on ROC website.
News suggests that companies with paid-up capital of up to Rs. 2 Cr and Turnover of up to Rs. 20 Cr are small companies and this benefit may be provided to them from next Financial year.

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