AUDIT
Audit and Assurance Services
Statutory audit and tailored assurance services provided by experienced and highly qualified Partners and staff
Whether you require an audit by law or choose to opt for a statutory audit, our team of experienced auditors will provide a focused, sharp and timely service. Our approach is to focus of the areas of higher perceived risk, tailoring our methods to target the key areas. Our report can focus on the areas which are most relevant to you.
Partner-led service, risk driven approach by highly experienced and qualified auditors.
As a firm, we pride ourselves in being large enough to be able to service all your needs but small enough to provide a personal service. Our key strengths have stood us at the forefront of local audit firms for many years.
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Auditing in India is a system of independently reviewing the records/activities and expressing an opinion thereon.
AUDITING IN INDIA
Basic audits in India are generally classified into two main types:
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Statutory Audits
Internal Audits
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Statutory audits are conducted to report the current state of a company’s finances and accounts to the Indian government and shareholders. Such audits are performed by qualified auditors working as external and independent parties. The audit report of a statutory audit is made in the form prescribed by the government agency.
Internal audits are conducted at the behest of internal management in order to check the health of a company’s finances, and analyze the organization’s operational efficiency. Internal audits may be performed by an independent party or by the company’s own internal staff.
In India, every company whose shares are registered on the stock exchange must have an internal auditing system in place. A company whose shares are not listed on the stock exchange, but whose average turnover during the previous three years exceeds INR 50 million, or whose share capital and reserves at the beginning of the financial year exceeds INR5 million, must also have an internal auditing system in place. The statutory auditor of the company must additionally report on the company’s internal auditing system of the company in the final report.
STATUTORY AUDITS:
In India, statutory audits are conducted for each fiscal year (April 1 to March 31) and not the calendar year. The two most common types of statutory audits in India are:
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TAX AUDITS:Tax audits are required under Section 44AB of India’s Income Tax Act 1961. The tax audit report is to be completed by September 30 after the end of the previous fiscal year. Non-compliance with the tax audit provisions may attract a penalty of 0.5 percent of turnover or INR100, 000, whichever is lower. There are no specific rules regarding the appointment or removal of a tax auditor.
COMPANY AUDITS:The provisions for company audits are contained in the Companies Act 1956 and Companies Act 2013 as applicable. Every company, irrespective of its nature of business or turnover, must have its annual accounts audited each financial year. For this purpose, the company and its directors must first appoint an auditor at the outset. Thereafter, at each annual general meeting (AGM), an auditor is appointed by the shareholders of the company who will hold the position from one AGM to the conclusion of the next AGM. After the completion of the term, the auditor must be changed.
Only an independent chartered accountant or a partnership firm of chartered accountants can be appointed as the auditor of a company.