​When an entity (other than LLP/ Company)  declares profits and gains for the previous year in accordance with section 44AD  i.e 6% / 8% profit of his total sales, turnover or gross receipts. 

​Every entity whether it is proprietorship Partnership, LLP or company carrying on business and his total turnover in business exceed ten crore rupees, if expense/receipt in cash less than 5% of total payment/receipt during the year.

​When an entity (other than LLP/ Company)  declares below profits as mentioned in section 44AD  i.e 6% / 8% profit of his total turnover of his income exceeds the maximum amount which is not chargeable to income-tax in any previous year,  Also in case where such person claimed his income to be lower than the deemed profits under section 44AE or section 44BB or section 44BBB, as the case may be, and his income exceeds the maximum amount which is not chargeable to income-tax in any previous year. 

When a professional entity carrying on profession shall, if his gross receipts in profession exceed fifty lakh rupees in any previous year.

​When an entity (other than LLP/ Company)  declares below profits and gains for the previous year in accordance with the provisions of section 44ADA  i.e 50% profit of his total sales, turnover or gross receipts and his income exceeds the maximum amount which is not chargeable to income-tax in any previous year. 

​There is a lot of merit in conducting internal audits. For example, if you have many branches across the country or the world even, it is important to take stock of what is happening in these branches all over the world. The only actual and plausible way of doing that is setting a standard of all the rules, regulations and documentation that needs to be in place when they actually have to get an external auditor. These steps will make the process all that much easier.a

​This is another compliance that a company has to abide by as it follows for better internal control. This is an important step to account for all the capital assets and depreciation and whether or not it complies with the objectives of the management. All this information will help the company create a much more accurate balance sheet as well.

​This is a much more technical process and is usually a part of the annual audit that takes place. This is the process that will allow the auditor to balance and check the tax returns information with the ones found in the actual business returns in their internal books.

​There needs to be a physical verification of the physical stock of the company. There are different approaches to stocks as they vary greatly in their nature. It is not possible to view each stock with the same metric. This stock audit has to take place annually as well. This is so that the digital and physical stocks actually match and that is the job of the auditor to ensure and check.