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Income and Expenditure Account

are not legal...

Question

__________ are not legally required to get their financial statements audited.

A

Companies

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B

Banks

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C

Partnership firms

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D

Insurance companies

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Solution

The correct option is B Partnership firms
No compulsory audit is provided by the Indian Partnership Act, 1932. But as per the Indian Taxation Act, 1961 Tax audit of partnership firm is mandatory if the turnover exceeds Rs. one crore in case of business and Rs. Twenty Five lakhs in case of profession.

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