## Audit of Limited Liability Partnership (LLP)
### Governing Law
Limited Liability Partnership Act, 2008
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### Basic Structure
- Minimum 2 partners required to form an LLP.
- At least 2 Designated Partners are mandatory — each must obtain a DPIN (Designated Partner Identification Number).
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### Small LLP — Definition
An LLP qualifies as a Small LLP if both conditions are met:
| Parameter | Threshold |
|---|---|
| Contribution | Does not exceed ₹25 lakh (or higher amount up to ₹5 crore, as prescribed) |
| Turnover | Does not exceed ₹40 lakh (per Statement of Accounts and Solvency for immediately preceding FY; or higher amount up to ₹50 crore, as prescribed) |
Classification as a Small LLP may affect audit requirements and compliance obligations.
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### Obligation to Maintain Books of Accounts
Every LLP must maintain annual accounts that reflect a true and fair view of its state of affairs.
Books of accounts must contain:
1. Particulars of all sums of money received and expended by the LLP and the matters in respect of which receipt and expenditure takes place
2. (Additional requirements include records of assets, liabilities, and other prescribed particulars)
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### Key Audit Considerations
1. Familiarise with the LLP Agreement — it governs profit sharing, contributions, and operational authority (analogous to the partnership deed).
2. Verify designation of Designated Partners and their DPINs.
3. Confirm the LLP is maintaining books as required and that the Statement of Accounts and Solvency has been filed with the Registrar.
4. Check whether the LLP qualifies as a Small LLP — this affects certain compliance requirements.
5. Unlike companies, LLPs have different audit triggering thresholds — verify whether the specific LLP is required to have an audit at all.