A Few Words on
Audit & Assurance
Understanding Audit Service
Know About it
We are aware that the integrity and reputation of a client’s management could reflect on the reliability of their accounting records and financial representations and, therefore, on the Firm’s reputation. The Firm requires evaluation of all potential new audit and assurance service clients.
Types of Auditing Service we provide
1. Statutory Audit
Statutory Audit of both Public and Private Companies, Banks, Financial Institutions, PSU’s, firms and Sole-Proprietor’s. A Statutory Audit of the financial statements requires an auditor to provide reasonable assurance that the accounts and financials have been prepared in accordance with the Generally Accepted Accounting Principles (GAAP) and Standards on Auditing (SAs), and that they are free from misstatements and errors.
Our team uses a combination of tailor made systems and controls to obtain audit evidence ensuring adherence with the provisions of Companies Act, 2013 across all organizations including those that are held by the government, publicly listed and privately held. It also fulfils the statutory assurance function for non-corporate entities based on the applicable statute and laws relevant to them.
- Risk based Audit Program and Sample Techniques.
- We follow materiality concept
- Primary auditing / cross checking.
- Compliance with Indian Accounting Standards (IAS).
- Use of analytics and statistical tools.
- We emphasize on communication with auditees/clients; whether personally or/ and written in formal communication.
2. Tax Audit
A Tax Audit involves an expression of the tax auditors’ opinion on certain financial details, given by an assessee to enable an assessment of its tax, by the Tax Authorities. Our endeavour is to help our clients undertake a correct assessment of their tax by reviewing the incomes chargeable to tax, disallowances and deductions there from, under the various provisions of Income Tax Act, 1961.
Our dedicated team of trained professionals conducts the audit keeping in mind the latest judicial pronouncements, amendments, circulars, notifications and tax accounting standards notified by the CBDT, as applicable for publicly listed, privately held, and other organizations.
3. Concurrent Audit
Concurrent Audits are a systematic and timely examination of the financial transactions on a regular basis to ensure accuracy, authenticity and compliance with procedures and guidelines. Concurrent audits do not emphasis test checking but substantial checking of a transaction. The main objective is to detect arithmetical errors and manipulation deliberately made (if any). Our endeavor is to conduct concurrent audits as per the scope of the entity and it usually includes
- A Systems review to understand the existing system and procedures, to enable us to suggest areas for system improvement and strengthening of controls
- Bringing to light violations of procedures (if any)
- Ascertaining whether sanctions for advances and expenditures is taken from a competent authority
- Ensuring compliance with the procedures and policies
- Review of the Funds Flow Statement and analysis of the utilization of the funds & various resources that were available
- Detection and arresting of leakages of income, (if any)
- Reporting inefficiencies at any operational level
4. Stock Audit
Stock Audit is a term which is generally used in manufacturing industries where in raw material purchased is converted in to finished goods. It is important from the perspective of having vigil over the quantity and quality of raw materials remaining in stores as more than 70% of product cost involves material cost. So, to monitor the purchase, store and issue of materials a stock audit is done. In any company inventory management is one area that the managements always focus on when it comes to improving business efficiencies and cutting costs. An inventory reduction drive always yields results, which are visible and releases cash back into business. We provide the following services
- Cutoff analysis
- Observe the physical inventory count.
- Reconcile the inventory count to the general ledger
- Test high-value items
- Test error-prone items.
- Test inventory in transit
- Test item costs
- Review freight costs
- Test for lower of cost or market
- Finished goods cost analysis.
- Direct labor analysis
- Overhead analysis
- Work-in-process testing
- Inventory allowances
- Inventory ownership
- Inventory layers
Stock audits are performed on behalf of banks and financial institutions. The objective is to ensure that the security against which funds are lent by the bank is safe and valued correctly.
5. Due Diligence
We assist clients in conducting financial, legal and accounting reviews in case of mergers, acquisitions and investments. A sound understanding of local laws, regulations and accounting practices enables us to vet all critical issues in detail.
Effective Due Diligence depends on identifying and managing significant transaction issues, anticipating and identifying potentially important risk and negotiation issues. The objective is to improve future performance of the organization by forecasting potential risk outcomes and attempting to improve the efficiency and effectiveness of the existing business processes. Our approach is to save time, money and effort as well as to help in influencing the price at the outset of the deal.
- Independent analysis and evaluation of financial and commercial information prepared at an early stage of a disposal or strategic divestment
- Gather, analyze and interpret financial, commercial and tax information in detail
- Compilation and review of financial information
- Audit of special purpose accounts
- Interfacing with purchaser and their accounting advisors on accounting matters and challenging due diligence findings of the purchaser
- Identifying contract warranties
Investigation is carried out when a lapse already exists in an organization in order to pin point the reason and person involved in it so that responsibility for such lapse could be fixed.
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