Audit and assurance services
Statutory, tax, internal and stock audits carried out under the applicable standards and reporting requirements.
An audit is an independent examination of financial records against the framework that applies to your organisation. What that framework is — the Companies Act, the Income Tax Act, or an internal mandate from management — determines the scope, the procedures and the form of the report.
Our audit work is led by a Chartered Accountant and carried out in accordance with the Standards on Auditing issued by the Institute of Chartered Accountants of India.
Which audit applies to you
A statutory audit is required of every company, irrespective of turnover, and of certain other entities under the laws governing them. A tax audit is required under the Income Tax Act where turnover or gross receipts exceed the prescribed limits, with those limits varying according to the proportion of receipts and payments made digitally.
Internal and stock audits are not statutory in most cases. They are commissioned by management or by a lender, and their scope is agreed in advance rather than set by statute.
What an audit does not do
An audit provides reasonable, not absolute, assurance. It is designed to detect material misstatement in the financial statements; it is not a guarantee that no error or irregularity exists, and it is not a valuation or a certification of the future prospects of the business.
Being clear about that scope at the outset avoids a common misunderstanding about what the report is intended to convey.
What this covers
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Statutory audit
Audit of companies and other entities under the law applicable to them, with the report in the prescribed form.
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Tax audit
Examination and reporting under the Income Tax Act where the turnover thresholds are crossed.
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Internal audit
Review of processes and controls against a scope agreed with management.
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Stock audit
Physical verification of inventory against the books, commonly required by lenders.
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Observations you can act on
Findings reported with the context needed to decide what, if anything, to change.
How the process works
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Scope and planning
Which framework applies, what period is covered, and what the reporting requirement is.
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Records and access
We list the books, statements and confirmations we will need.
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Fieldwork
Testing and verification, with queries raised as they arise rather than held to the end.
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Draft observations
Findings discussed with you before anything is finalised.
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Report
The report issued in the applicable form, with the annexures required.
Documents required
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Books of account for the period
Ledgers, cash book and journals.
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Financial statements
Trial balance, profit and loss account, balance sheet.
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Bank statements and reconciliations
For every account operated.
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Statutory returns filed
GST, TDS and income tax returns for the period.
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Fixed asset register
With additions and disposals during the period.
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Inventory records
Stock statements and valuation basis.
The list above is indicative. Additional documents may be required depending on your case and the current departmental requirements.
Related services
Statutory Audit
Audit required by the law governing an entity, with the report in the prescribed form.
Tax Audit
Examination and reporting under the Income Tax Act where the turnover thresholds are crossed.
Internal Audit
Review of processes and controls against a scope agreed with management.
Stock Audit
Physical verification of inventory against the books, commonly required by lenders.
Frequently asked questions
What is the difference between a statutory audit and a tax audit?
A statutory audit is required by the law governing the entity — every company requires one regardless of turnover — and results in an opinion on whether the financial statements give a true and fair view.
A tax audit is required under the Income Tax Act where turnover or gross receipts cross the prescribed limits, and results in a report on specified particulars relevant to computing taxable income. An entity may require both.
Does a tax audit apply to my business?
It depends on your turnover or gross receipts for the year, and on the proportion of your receipts and payments made other than in cash — a higher threshold is available where cash transactions stay within a small proportion of the total.
Because of that, two businesses with identical turnover can reach different answers. Share your figures with us and we will confirm the position for your case.
Does an audit guarantee that there is no fraud in my business?
No. An audit provides reasonable assurance, not absolute assurance. It is designed to detect misstatement that is material to the financial statements as a whole, using risk-based and selective testing rather than examination of every transaction.
Where detecting irregularity in a specific area is the objective, an internal audit or a focused review with an agreed scope is the more suitable engagement.
Need an audit for the coming year?
Tell us about your organisation and we will confirm which audit applies and what the timeline involves.