Limited Liability Partnership (LLP) Audit Report Format
Table of Contents
Criteria for LLP Audit
LLP audit requires to be conducted in the following cases: LLP Audit Report Format
- Turnover of Limited Liability Partnership (LLP) exceed Rs. 40 lakhs
- Partners contribution exceeds Rs 25 lakhs
After completion of LLP audit, audit report from Practicing Chartered Accountants needs to be obtained. Below is sample LLP Audit report format.
Content of LLP Audit Report Format
LLP Audit Report format may have below content
- Name of LLP & Registration Number
- LLP Audit Period
- Scope of Audit
- Management Responsibility
- Audit Opinion
- Auditor Name & Firm Details
LLP Audit Report Format
To The Partners of ________________ LLP
(LLPIN: ________)
Opinion
We have audited the accompanying Statement of Accounts of M/s XYZ LLP (“the LLP”), which comprise the Statement of Assets and Liabilities as at 31 March 202X, the Statement of Income and Expenditure, Cash Flow Statement for the year then ended, and notes to the Statement of Accounts, including a summary of the significant accounting policies (collectively referred to as “the Statement of Accounts”).
In our opinion, the accompanying Statement of Accounts give a true and fair view of the financial position of the LLP as at 31 March 202X, and of its financial performance and its cash flows for the year then ended in accordance with the Accounting Standards issued by Institute of Chartered Accountants of India (“ICAI”).
Basis for Opinion
We conducted our audit in accordance with the Standards on Auditing (SAs) issued by ICAI. Our responsibilities under those SAs are further described in the Auditor’s Responsibilities for the Audit of the Statement of Accounts section of our report. We are independent of the LLP in accordance with the Code of Ethics issued by the Institute of Chartered Accountants of India, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.
Responsibilities of the Management for the Statement of Accounts
The LLP’s Management (designated partners) is responsible for the preparation of the Statement of Accounts in accordance with the Rule 24 of the Limited Liability Partnership Rules, 2009 (“the Rules”), and for such internal control as management determines is necessary to enable the preparation of the Statement of Accounts that are free from material misstatement, whether due to fraud or error.
In preparing the Statement of Accounts, LLP’s Management is responsible for assessing the LLP’s ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless LLP’s Management either intend to liquidate the LLP or to cease operations, or has no realistic alternative but to do so.
Management is also responsible for overseeing the LLP’s financial reporting process.
Auditor’s Responsibilities for the Audit of the Statement of Accounts
Our objectives are to obtain reasonable assurance about whether the Statement of Accounts as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditors’ report that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with SAs will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these Statement of Accounts.
As part of an audit in accordance with SAs, we exercise professional judgment and maintain professional skepticism throughout the audit. We also:
• Identify and assess the risks of material misstatement of the Statement of Accounts, whether due to fraud or error, design and perform audit procedures responsive to those risks, and obtain audit evidence that is sufficient and appropriate to provide a basis for our opinion. The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control.
• Obtain an understanding of internal control relevant to the audit in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the LLP’s internal control.
• Evaluate the appropriateness of accounting policies used and the reasonableness of accounting estimates and related disclosures made by the LLP’s Management.
• Conclude on the appropriateness of the LLP’s Management use of the going concern basis of accounting and, based on the audit evidence obtained, whether a material uncertainty exists related to events or conditions that may cast significant doubt on the LLP’s ability to continue as a going concern. If we conclude that a material uncertainty exists, we are required to draw attention in our auditor’s report to the related disclosures in the Statement of Accounts or, if such disclosures are inadequate, to modify our opinion. Our conclusions are based on the audit evidence obtained up to the date of our auditors’ report. However, future events or conditions may cause the LLP to cease to continue as a going concern.
We communicate with the LLP’s Management regarding, among other matters, the planned scope and timing of the audit and significant audit findings, including any significant deficiencies in internal control that we identify during our audit.
For ____________
Chartered Accountants
Firm Regn No – _________
Proprietor/Partner Name____________
Membership No : _______
UDIN : ________
Date :_________
Place : Bengaluru
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