For a Limited Liability Partnership (LLP), audit is required when:
ATurnover exceeds Rs. 40 lakhs OR contribution exceeds Rs. 25 lakhs
BAlways, regardless of size
CNever
DOnly on demand of partners
Answer & Solution
Correct answer: A. Turnover exceeds Rs. 40 lakhs OR contribution exceeds Rs. 25 lakhs
1. LLP Rules 2009 (Rule 24) require audit when turnover > Rs. 40 lakhs or capital contribution > Rs. 25 lakhs.
2. Smaller LLPs are exempt.
3. Partners may always opt for voluntary audit.
_Source: ICAI BoS CA Final Paper 3, Ch 5 "Company Audit"_
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