AUDIT & ASSURANCE
Statutory Audit
An audit is the independent examination of an entity’s financial statements and accompanying disclosures. The result is an auditor’s report that attests to the accuracy and fairness of the presentation of these statements. This report must be provided along with the financial statements when they are shared with intended recipients.
In India, a statutory audit refers to an audit that is required by law. The term “audit” broadly means an examination, review, or inspection. Different laws prescribe various types of audits, such as company law requiring a company audit, and cost accounting law necessitating a cost audit.
When conducting statutory audits, we adhere to the standards on auditing (SAs) issued by the Institute of Chartered Accountants of India (ICAI). Our team comprises experienced professionals with the expertise required to effectively carry out the audit process.
Tax Audits
As per the Income-tax Law, certain taxpayers are required to have their business or profession accounts audited to ensure compliance with tax regulations.
Section 44AB of the Income-tax Act outlines the provisions for the taxpayers who must get their accounts audited by a Chartered Accountant. The purpose of the audit under this section is to verify compliance with the provisions of the Income-tax Law and to meet other statutory requirements. This audit, conducted by the Chartered Accountant, is referred to as a tax audit.
The Chartered Accountant performing the tax audit must provide a report with findings and observations. The audit report is submitted in the prescribed formats, Form Nos. 3CA/3CB and 3CD.
Goods & Services Tax (GST) Audit
An audit refers to the examination of records, returns, and other documents maintained or submitted by a registered person under GST or any other applicable law, to verify the accuracy of declared turnover, taxes paid, refunds claimed, and input tax credit availed, as well as to assess compliance with the provisions of the Act and related rules.
Types of GST Audits
There are three main types of GST audits:
- Goods & Services Tax audit by a Chartered Accountant (CA).
- Goods & Services Tax audit by tax authorities.
- Goods & Services Tax – Special audit.
We approach GST audits with professionalism, recognizing the extensive time and effort required for the preparation and filing of GST annual returns and GSTR-9C for audit purposes.
Internal Audit
As per Section 138 of the Companies Act, 2013, certain classes of companies are mandated to appoint an internal auditor. The internal auditor must be a Chartered Accountant, Cost Accountant, or another professional as determined by the company’s board, to conduct an internal audit of the company’s functions and activities.
Companies required to appoint an internal auditor:
The following companies must appoint an internal auditor (either an individual, partnership firm, or a body corporate):
- Every listed company.
- Every unlisted public company with:
- Paid-up share capital of ₹50 crore or more during the preceding financial year.
- Turnover of ₹200 crore or more during the preceding financial year.
- Outstanding loans or borrowings from banks or public financial institutions exceeding ₹100 crore at any point during the preceding financial year.
- Outstanding deposits of ₹25 crore or more at any point during the preceding financial year.
- Every private company with:
- Turnover of ₹200 crore or more during the preceding financial year.
- Outstanding loans or borrowings from banks or public financial institutions exceeding ₹100 crore at any point during the preceding financial year.
Our Services:
- Conducting internal audits as per applicable regulatory requirements.
- Reporting to management on areas of concern or improvement.