A business example
A business has completed its financial-statement audit and assumes no further tax reporting assessment is needed.
Financial audit
The auditor reports under the applicable financial-reporting framework.
Tax applicability
The business separately checks the income-tax audit conditions for its facts and year.
Tax records
If covered, the relevant tax audit information and report are prepared.
What this shows
One audit's completion does not answer whether another legally distinct reporting requirement applies.
What it is often confused with
A statutory financial audit and an income-tax audit have different purposes and reporting requirements.
What to look at in your business
Review the current applicability guide and preserve the books and tax reconciliation.
Context and further reading
This entry explains the business term. The related guide below provides the next layer of context; any applicable legal test depends on the transaction and relevant period.
Kosha.Services · Updated 2 October 2026