“Auditing is a systematic examination of financial statements through collection of sufficient and appropriate evidence with an intention of expressing an opinion whether the financial statement give true and fair picture or not”.
Audit is one of the most important tools to ensure legal business operation of companies. Our basic goal is to provide shareholders and investors with information that reflects the true and valid financial position of the company. Our qualified auditors are to help you in your decision-making process.
All audits are not the same. They are different based on to whom it is to be reported and on which area it is to be reported. For e.g. Statutory audit is conducted by government authority and it is them to whom it is to be reported.
1. Statutory Audit
Statutory audits are conducted in order to report the state of a company’s finance and accounts to the government. The audit report of statutory audit is made in the form prescribed by the government agency. This audit is to be conducted by a qualified and independent auditor.
2. Tax Audit
As per section 44AB- Every person or entity must have their accounts audited by an independent chartered accountant;
Incase of Business
If a turnover or gross receipts of a business is Rs. 1 crore or more
In Case of Profession
If gross receipts of a profession is Rs. 25 lacs or more
In Other Cases
Any assessee carrying on a business, declaring his income at an amount less than the amount computed under section 44AD and whose income exceed the basic exemption limit for the relevant previous year shall also get his accounts audited u/s 44AB.
The Tax audit report is to be obtained by September 30th after the end of previous fiscal year.
Non compliance attracts penalty of 0.5% of turnover or INR 1 Lacs whichever is lower.
3. Internal Audit
This audit is conducted by the management of the company. We can say internal audit is a preparation for other independent audits. But the main intention of internal audit is to check the status of finance and operational efficiency of the company. This audit can be conducted by an independent party or by a company’s own staff. The report of internal audit is to be submitted to management.
4. System Audit
System means collection or unification of activities, instruments, material, and people to achieve a specific goal. For e.g. Information system is collection of hardware and software acting together to serve a common purpose of providing information. When we talk about a system audit we most specifically refer to management system audit. A system audit is an audit of system/subsystem against system requirement. The main purpose of this audit is to check whether the system/subsystem is working according to the prescribed requirement or not.
5. Due Diligence
Due diligence is a process of thorough and objective examination that is undertaken before corporate entities enter into any major transactions such as mergers and acquisitions, issuing new securities, project financing, debt-securitization amongst others.Due diligence assists the purchaser or investor in gathering all the necessary information about the organization he is acquiring or investing in prior to completion of transaction including critical success factor as well as strength and weakness.
Due diligence can be sub classified as follows
- “Commercial or operational due diligence
- Financial due diligence
- Tax due diligence
- Information systems due diligence
- Legal due diligence
- Environmental due diligence
- Personal due diligence”
6. Fixed Assets Audit
All private and public entities are required to conduct an annual physical count of all fixed assets to verify actual assets in hand and value and ensure the accuracy of related financial records.
7. VAT Audit
VAT are the most significant indirect taxes that every business entity encounters in the course of doing business. Under the VAT system, a major thrust is laid on the ‘self assessment’ of tax liability by the assessee. Hence arises the need for an independent auditor to audit business entities from the VAT angle. Our team of professionals facilitate the determination of any under or over assessment made by the assessee, through the appropriate interpretation and application of the VAT provisions by offering VAT audit services.
- Concurrent Audit
- Stock Audit
- Investigation Audit
- Forensic Audit