Auditing Services

We Provide End to End Process and Support in all types of Auditing Service

“An audit is an independent examination of financial information of any entity, whether profit oriented or not, irrespective of its size or legal form, may be mandated by any laws or recommendatory in nature or for internal purpose and decision making. There are Various types of audits mandated in India, the main purpose of audit is to examine the accounting books and information as required by is conducted with a view to express an opinion thereon. It also attempts to ensure that the books of accounts are properly maintained by the concern as required by law. Auditing has become such a important phenomenon in the corporate and the public sector that business entity perform there audits by the Auditors who perceive and recognize the propositions before them for examination, obtain evidence, evaluate the same and formulate an opinion on the basis of their judgement which is communicated through their auditing report.”

Types of Audits :

Statutory Audits Under Companies Act 2013
Tax Audit Under Income tax 1961
GST Audits
Stock Audits
Internal Audits
Bank Audits
Transfer Pricing Audit

Statutory Audit under Companies Act 2013

The expression financial statement includes following items:

A balance sheet as at the end of the financial year

A profit and loss account, or in the case of a company carrying on any activity not for profit, an income & expenditure account for the financial year

A statement for changes in equity, if applicable;

Cash flow statement for the financial year;

Any explanatory note annexed to, or forming part of, any document referred

Tax Audit Under Income Tax Act 1961.

What is Tax Audit ? :

As the name it self suggest, TAX Audit is the audit under Income tax 1961, for an examination or review of accounts of any business or profession carried out by taxpayers from an income tax viewpoint, It is the Audit to make Assessee as Tax complaint under Income tax act which is carried out by only practicing chartered accountants, It is mandated by the act and hence mandatory in nature. It Records all the tax information and helps assessee to compute taxable income and determine tax liability under Income tax act.

Applicability of Tax Audit to Tax Payers :

A taxpayer is required to have a tax audit carried out if the sales, turnover or gross receipts of business exceed Rs 1 crore in the financial year. However, a taxpayer may be required to get their accounts audited in certain other circumstances.

We have categorized the various circumstances in the tables mentioned below:

Category of person

Business

Carrying on business (not opting for presumptive taxation scheme*)
Carrying on business eligible for presumptive taxation under Section 44AE, 44BB or 44BBB
Carrying on business eligible for presumptive taxation under Section 44AD
Carrying on the business and is not eligible to claim presumptive taxation under Section 44AD due to opting out for presumptive taxation in any one financial year of the lock-in period i.e. 5 consecutive years from when the presumptive tax scheme was opted
Carrying on business which is declaring profits as per presumptive taxation scheme under Section 44AD

Profession

Threshold

Total sales, turnover or gross receipts exceed Rs 1 crore in the FY
Claims profits or gains lower than the prescribed limit under presumptive taxation scheme
Declares taxable income below the limits prescribed under the presumptive tax scheme and has income exceeding the basic threshold limit
If income exceeds the maximum amount not chargeable to tax in the subsequent 5 consecutive tax years from the financial year when the presumptive taxation was not opted for
If the total sales, turnover or gross receipts does not exceed Rs 2 crore in the financial year, then tax audit will not apply to such businesses.

Stock and Fixed Assets Audits

Stock audit or inventory audit or fixed assets audit is a term that refers to physical verification of a company or institution’s inventory or assets. There are types of stock audits depending on the purpose and every stock audit will require a different approach.

Every business institution at least needs to perform a stock audit once a year and Fixed Assets once every Two year depending upon the nature of entity to update and ensure that the physical stock or assets and the stock or fixed assets as per books of account is matched. A stock audit helps correct discrepancies between the physical stock and book stock can be corrected.

Why is a stock audit important?

There are several key reasons why an institution needs to perform a stock audit or Fixed Assets Audit, including:

Identify the slow-moving stock or Assets, deadstock, dead assets obsolete stock or assets, and scrap
Find out discrepancies between book information and physical data
Update the physical stock that matches book stock
Make sure the proper preservation and handling of stocks and assets

Stock audits is also an important factor in determining the benefits that should be offered to institutions. These are the key benefits of stock audits:

To reduce cost and bottom-line
To prevent pilferage and fraud
As information of the accurate inventory value
to reduce gaps in the inventory management process
As special arrangements for third party opinion, including for agent warehouses
As a good control mechanism in running the business

Internal Audits

What is an Internal Audit?

Internal audits evaluate a company’s internal controls, including its corporate governance & accounting processes. They ensure compliance with laws and regulations and help to maintain accurate and timely financial reporting and data collection. Internal audits also provide management with the tools necessary to attain operational efficiency by identifying problems and correcting lapses before they are discovered in an external audit.

Key Takeaways :

An internal audit offers risk management and evaluates the effectiveness of a company’s internal controls, corporate governance, and accounting processes.
The Sarbanes-Oxley Act of 2002 introduced new internal control requirements and holds management legally responsible for their financial statements by requiring senior corporate officers to certify in writing that the financials are accurately presented.
Internal audits provide management and board of directors with a value-added service where flaws in a process may be caught and corrected prior to external audits
Make sure the proper preservation and handling of stocks and assets

Bank Audit

Statutory Audit is an audit which is prescribed by the different statute like Reserve Bank of India, Income Tax, Companies Act, etc. A Chartered Accountant need to conduct many audits as per the different statute requirement.

Statutory Audit of banks is mandatory. Statutory Auditors are appointed by RBI in association with the ICAI. Every year after the end of the previous financial year, in every branch of the banks, a very rigorous audit is conducted.

The Statutory Auditors should ensure that the audit report issued by them complies with the requirements of Revised SA 700 – Forming an Opinion and reporting on financial statements, SA 705 – Modifications to the opinion in the Independent Auditor’s Report & SA 706– Emphasis of matter paragraphs and other matter paragraphs in the Independent Auditor’s Report.

Nowadays, all statutory auditors are given a time frame in which they have to undertake the audit of the branches that are allotted to them. An auditor should immediately accept the appointment send a formal communication to the branch management and all other information that he would require in his audit.

The auditor will have to ensure that their report should include the quantification of advances, deposits, interest income and interest expenses.

The important elements to check in the statutory audit of banks are:

Cash Verification Procedure
Tax-Related Items
Verification of Loan Accounts