CMA Intermediate · Business Laws and Ethics · Limited Liability Partnership Act, 2008
Which provision is made in the Act about audit of LLP accounts?
The accounts of LLPs are to be audited in accordance with prescribed rules, but the Central Government may, by Gazette notification, exempt any class or classes of LLPs from this audit requirement.
- AAccounts must be audited under prescribed rules, and the Central Government may exempt classes of LLPs by notificationCorrect
- BEvery LLP must be audited without any exemption possible
- CAudit is voluntary for all LLPs
- DAudit is required only if the LLP has more than twenty partners
Explanation
Section 34(4) provides that LLP accounts shall be audited in accordance with prescribed rules, and the proviso lets the Central Government exempt any class of LLPs by notification in the Official Gazette. So neither a blanket audit nor a voluntary audit is the Act's position.
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