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“Where audited accounts are available this may make the accounts more acceptable to the taxation authorities when it comes to agreeing an individual partner’s liability to tax. ” it is a point in advanatages of non statutory audit
can you explain this point?Partners in simple partnerships do not require their business accounts to audited – but they will be assessed for tax on their share of partnership profits. So an advantage to a partnership having its accounts audited is that they will be more readily accepted by the tax authorities. Of course an audit comes at a cost (although the partners’ tax affairs might then be settled more quickly) – so we’re talking about larger partnerships rather than say just a couple of partners.
(When talking about Limited Liability Partnership (LLPs) in the UK, however, they are subject to the same audit regulations as companies.)
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