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Corporate Law

Secretarial Audit Cost What to Expect
Companies Act compliance

Expert brief on Secretarial Audit Cost What to Expect for businesses, promoters, and individuals. Reconcile with latest notifications before filing.

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Last fact-checked: 2026-06-22
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Audit requirements

What this page helps you decide

  • Confirm if your business or profession exceeds the thresholds for a mandatory Tax Audit under Section 44AB.
  • Check if your company requires a statutory audit under the Companies Act, 2013 (mandatory for all incorporated companies).
  • Verify the applicability of a Secretarial Audit under Section 204 (Form MR-3) for public companies or large borrowers.
  • Ensure all CA-certified reports carry a valid UDIN (Unique Document Identification Number) to prevent reject actions on portals.
Fact check

Accuracy notes before you act

  • Tax audit threshold is ₹1 crore, increased to ₹10 crore if at least 95% of receipts and payments are executed digitally.
  • The due date for submitting a Tax Audit report (Form 3CA/3CB and 3CD) on the e-filing portal is September 30th of the assessment year.
  • Secretarial Audit is mandatory for public companies with capital >= ₹50 crore, turnover >= ₹250 crore, or bank loans >= ₹100 crore.
  • ICAI mandates that all Chartered Accountants must generate a UDIN within 60 days of signing any document/certificate.
  • The penalty for MR-3 Secretarial Audit compliance defaults is ₹2,00,000 on the company and ₹50,000 on directors in default.
Documents

Documents and facts to keep ready

  • Books of accounts, trial balances, journals, and ledger books.
  • Bank statements, digital payment registers, and cash transaction records.
  • Prior year audit reports, ITR returns, and Form 3CD schedules.
  • PAN, Aadhaar, CIN/LLPIN, and GST registration details.
  • UDIN numbers for all certified certificates and audit reports.
Care points

Common mistakes to avoid

  • Uploading tax audit reports without UDIN verification, leading to the report being treated as invalid by the IT portal.
  • Failing to reconcile books of accounts with GST return filings (GSTR-1 vs GSTR-3B vs GSTR-9), leading to audit flags.
  • Missing the September 30th tax audit deadline, which attracts a penalty of 0.5% of turnover (up to a maximum of ₹1.5 lakh).
  • Appointing statutory auditors without filing Form ADT-1 with the ROC within 15 days.
  • Ignoring CARO (Companies Auditor's Report Order) reporting requirements for eligible unlisted companies.
Questions People Ask

Frequently Asked Questions

1. What are the audit and accounting requirements for businesses dealing with Secretarial Audit Cost What to Expect?

Businesses involving Secretarial Audit Cost What to Expect must maintain proper books of accounts under Section 44AA. A tax audit under Section 44AB is mandatory if turnover exceeds ₹1 crore (or ₹10 crore for digital operations).

2. Why is a UDIN mandatory for CA certifications related to Secretarial Audit Cost What to Expect?

All CA-certified financial statements, net worth certificates, or audit reports for Secretarial Audit Cost What to Expect must carry a Unique Document Identification Number (UDIN) generated on the ICAI portal to be legally valid.

3. What is the due date for submitting the Tax Audit report?

The due date to file the tax audit report on the income tax portal is September 30 of the Assessment Year (one month prior to the ITR filing due date of October 31 for audited cases).

4. What is the penalty for not getting books of accounts audited?

Under Section 271B, failure to get books audited u/s 44AB attracts a penalty of 0.5% of the total sales, turnover, or gross receipts, subject to a maximum cap of ₹1.5 lakh (₹150,000).

5. What is UDIN and why is it mandatory for CAs?

UDIN (Unique Document Identification Number) is a unique 18-digit number generated by Chartered Accountants on the ICAI portal for every certificate, audit report, and document they sign, to prevent forgery and verify CA credentials.

6. What happens if a CA fails to generate a UDIN?

Documents signed by a CA without a UDIN are treated as invalid. If not generated within the 60-day window, the CA can face disciplinary action from the ICAI for professional misconduct.

7. What is a Statutory Audit under the Companies Act, 2013?

A statutory audit is a mandatory review of a company's financial records to verify they present a true and fair view. It is compulsory for all companies (Private Limited, Public, OPC) regardless of turnover or capital.

8. What is a Secretarial Audit under Section 204?

A secretarial audit is an audit of compliance with corporate, securities, and labor laws, conducted by a practicing Company Secretary (CS) who submits Form MR-3. It is mandatory for listed and large public/borrowing unlisted companies.

9. What are the thresholds for a mandatory Secretarial Audit?

Secretarial audit is mandatory for: (1) Listed companies. (2) Public companies with paid-up capital >= ₹50 crore or turnover >= ₹250 crore. (3) Any company with outstanding bank/public financial institution loans >= ₹100 crore.

10. What is CARO (Companies Auditor's Report Order)?

CARO is a set of compliance items that statutory auditors of companies must report on, covering areas like fixed assets, inventory verification, loans to related parties, statutory dues, and internal control structures.

11. Are LLPs required to undergo audits?

Under the LLP Act, 2008, an LLP must get its accounts audited if its annual turnover exceeds ₹40 lakh or if its partner contributions exceed ₹25 lakh.

12. What is an Internal Audit? Who is required to appoint an internal auditor?

An internal audit evaluates a company's risk management and internal controls. Under Section 138 of the Companies Act, listed companies and unlisted public/private companies crossing specific turnover or debt thresholds must appoint an internal auditor.

13. What is the difference between Form 3CA and Form 3CB?

Form 3CA is the audit report used when the business is already required to get its accounts audited under another law (like the Companies Act). Form 3CB is used when the audit is required solely under the Income Tax Act.

14. What is Form 3CD?

Form 3CD is a detailed statement of particulars containing 44 clauses that the tax auditor must complete, detailing business income, expenses, depreciation, MSME dues, TDS compliance, and tax adjustments.

15. Can a tax audit report be revised after uploading?

Yes, a tax audit report can be revised if there are changes in the accounts (like corporate restructuring) or adjustments due to subsequent notifications, certified by the same CA with a fresh UDIN.