MCA proposed to do away with Statutory Audit as per the Companies Act 2013 for small companies
Please note that wide announcement dated 06th September 2021, ICAI President has clarified that MCA has no plan to remove Small Company Audit.
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.
This news has been confirmed by CNBC Awaaz
#AwaazStory | छोटी कंपनियों को जल्द ही #TaxAudit की तर्ज पर Statutory Audit में भी राहत मिल सकती है। सूत्रों के मुताबिक #Easeofdoingbusiness को बढ़ावा देने के लिए सरकार ये कदम उठा सकती है। खबर पर ज्यादा जानकारी दे रहे हैं @aloke_priya pic.twitter.com/DMrKA9AQjS
— CNBC-AWAAZ (@CNBC_Awaaz) August 26, 2021
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.
As per sources, 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.