Why savings account required for audit if AP run a proprietorship firm with many transactions?

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• What documents are required for the audit?

  A questionnaire in Word format will be emailed to you. You are required to fill it out, sign it, and send it back along with the following documents: Bank account statements (last 12 months) Demat account statements (last 12 months) The auditor will ...

• How many months of bank statements are required for audit?

  It is mandatory to provide all bank account statements to the auditors during the audit. Typically, statements for the last 6 months (or as specified by the audit team) should be kept ready and up to date.

• How many months of bank statements are required for the audit?

  Bank statements are required from the date of the last audit up to the date of the current audit. Ensure all statements within this period are complete and readily available for review.

• Can an AP hold a demat account with another broker?

  No, an AP is required to close any demat account held with another broker. This is to avoid any conflict of interest and ensure compliance with regulatory guidelines.

• Is it okay if relatives transfer money to AP account for personal reasons?

  Such transactions are acceptable at the first level. However, if the volume or frequency is high. For example, transactions exceeding ₹5 lakhs in a year they may raise red flags during an audit. In such cases, the auditor will seek a written ...