Introduction
A company audit is an essential financial and legal requirement for every registered company. It ensures that a company’s financial statements are accurate, transparent, and compliant with government laws. Audits help companies maintain compliance, avoid fines, and build trust with banks, investors, and government authorities.
What is an audit?
An audit is an independent examination of a company’s financial statements, accounting records, and internal controls. A professional auditor reviews whether the company’s financial activities are true, fair, and compliant with legal and tax standards.
Why is an audit important?
- Ensures accuracy and transparency in financial reporting
- Helps prevent errors, fraud, and misuse of funds
- Builds credibility with stakeholders, banks, and suppliers
- Ensures compliance with tax laws and corporate rules
- Required for tax clearance and annual company filing
Why Is Doing a Company Audit Timely?
There are several legal and practical reasons why every company must complete its audit on time.
1. For Company Adhyawadhi
An audit report is a compulsory document that must be submitted to the OCR when completing the AGM. However, if the AGM is not held on time, a fine will be imposed. A timely audit helps avoid continuous and growing penalties.
2. For Tax Clearance
A company must have an audit report to obtain tax clearance.
3. To Stop IRD Fine Penalties
If your audit report is not submitted on time:
- The IRD charges a late fine of Rs. 100 per month
- The fine starts after the end of Ashoj month
- Uploading the audit report to the IRD portal stops the fine from increasing further
A timely audit helps prevent unnecessary fines and penalties.
Government Tax
Every company must pay tax to the government:
- 25% tax is charged on the profit shown in the company’s financial statements
- An audit ensures that profit is calculated correctly
- Helps avoid disputes or reassessments from the IRD
A proper audit ensures accurate tax computation and smooth compliance.
Late Fine for Audit Report Submission
The audit report must be submitted to the IRD:
- Within 3 months after the fiscal year ends
- Late submission results in IRD fines
- You can also use our IRD late fine tax calculator to estimate your company’s fine
Submitting the audit report early avoids additional charges.
How We Help You
Our auditing service ensures that your company stays fully compliant and avoids penalties. We assist you with:
- Preparing and completing the full audit process
- Uploading the audit report to the IRD portal
- Avoiding late fines, IRD penalties, and AGM-related issues
- Guiding the company on tax rules and profit calculations
- Supporting documentation for tax clearance
- Providing professional financial advice for future compliance
We deliver accurate, timely, and hassle-free auditing services so you can focus on growing your company.
Conclusion
A company audit is not just a legal formality—it is an essential process that protects your company from penalties, ensures tax compliance, and strengthens financial transparency. Completing your audit on time helps you avoid IRD fines, receive tax clearance smoothly, and maintain excellent standing with the government.
If you want professional support and a stress-free audit experience, we are here to help you at every step.
