The Statutory (external )audit deals mainly with the examination of the books and financial records of a client firm and reports to the shareholders.Appointed by stakeholders.Stautory Function.Appoinment under Companies ACt
u/s 44AB of Income Tax Persons earning more than Rs. 40 Lakhs, should maintain books of account for the same.
His accounts should be audited by a Chartered Accountant and certify that is called tax audit.Report to Income Tax department (3CA)and details in 3CD in specified format and Return in ITR1-8.This is under Income Tax Act.
These both are colocially used for identifying or classifying different kinds of audits. Statutory audit is an audit conducted as per the requirement or madated under any statute. Tax Audit is one of a statutory audit, which is mandated under Income Tax Act, 1956. An audit conducted to meet the requirements of different laws will have different focus areas and the reporting is also different according the requirement of each law.