As per section 44AB of Income Tax Act, audit is basically concerned with verification of data, determining the accuracy and reliability of reports.
As we know there are various kinds of audit being conducted under different laws such as company audit/statutory audit conducted under company law provisions, cost audit, stock audit etc.Similarly, Income tax law also mandates an audit called ‘Tax Audit’. As the name itself suggests, Tax audit is an examination/review of accounts of the business /profession from income tax viewpoint such as income, deductions, compliance with income tax law etc. Tax audit makes the income computation for filing the return easy.
Ensure proper maintenance and correctness of books of accounts and certification of the same by tax auditor. and the reporting of observations/discrepancies noted by tax auditor after a methodical examination of books of account.