OVERVIEW If you own a business, the annual audit can sometimes feel like a time-consuming and expensive process that only benefits
the statutory authorities. We make sure all your onerous reporting requirements are met as painlessly as possible- keeping
banks, creditors, finance providers, and even the inland revenue, happy.
But more than that - we aim to offer you the kind of business advice that could help you to run your company efficiently and
cost-effectively. We also offer expert corporate tax planning advice, to make sure you’re as tax-efficient as possible.
Understanding an Audit An audit is an examination of records held by an organization, business, government entity or individual. Generally, this involves
the analysis of various financial records but can also be applied to other areas. During a financial audit, an organization’s
records regarding income or profit, investment returns, expenses and other items may all be included as part of the audit process.
The purpose of a financial audit is often to determine if funds were handled properly and that all required records and filings
are accurate. At the beginning of an audit, the auditing entity makes known what records will be required as part of the examination.
The information is gathered and supplied as requested, allowing the auditing entity to perform its analysis. If inaccuracies are found,
appropriate consequences may be levied.
We provide following audit services
1. Statutory audit The term statutory means defined by statute. A statutory audit is a legally required review of the accuracy of a company's
(or government's) financial statements and records. The purpose of a statutory audit is the same as the purpose of any
other type of audit: to determine whether an organization is providing a fair and accurate representation of its financial
position by examining information such as bank balances, bookkeeping records and financial transactions.
2. Internal audit Internal auditing is an independent, objective assurance and consulting activity designed to add value and improve an organization's
operations. It helps an organization accomplish its objectives by bringing a systematic, disciplined approach to evaluate and improve
the effectiveness of risk management, control and governance processes.
Internal audits evaluate a company’s internal controls, including its corporate governance and accounting processes. They ensure
compliance with laws and regulations and accurate and timely financial reporting and data collection, as well as helping to maintain
operational efficiency by identifying problems and correcting lapses before they are discovered in an external audit.
The difference between internal audit and statutory audit are highlighted below:
| S.no. | Particulars | Internal Audit | Statutory Audit |
| a | Appointment | Generally appointed by manager | Appointed by shareholders in general meeting |
| b | Legal requirement | Is a need of the management, no legal obligation | Is a legal requirement |
| c | Qualification | Doesn’t require any qualification as per provision of law | Qualification of statutory auditor is specified |
| d | Conducting of audit | Is of regular nature | Conducted after preparation of final accounts |
| e | Status | Is a staff appointed by manager | Independent person appointed by shareholders |
| f | Scope of work | related to the examination of books of accounts and other activities of an organization Scope of internal audit is vague | checks the books of accounts and related evidential documents
scope of statutory audit is limited |
| g | Removal | By the management | By annual general meeting |
| h | Remuneration | Fixed by management | Fixed by shareholders |
| i | Report | needs to give suggestions to improve weakness but no need to present report | requires to prepare report after the completion of work on the basis of facts found during the course of audit and present such report to the appointing authority |
3. Transfer Pricing Audit
Transfer pricing (TP) is a term used to describe inter-company pricing arrangements relating to transactions between related
entities. These can include transfers of intellectual property, tangible goods, services, and loans or other financing transactions.
Such inter-company transactions, domestically and across borders, are growing rapidly and are becoming much more complex.
Compliance with the differing requirements of multiple overlapping tax jurisdictions is a complicated and time-consuming task.
At the same time, tax authorities both local and regional, are imposing stricter penalties, mandatory documentation requirements,
increased information exchange and carrying out intensive audits.
If you
need to better understand TP compliance requirements and the expectations of the tax authorities?
need to respond to a tax authority transfer pricing audit / enquiry ?
require a more in-depth understanding of what happens during TP audits?
want reasonable assurance that your internal controls over transfer pricing are sufficient?
want to know what are the "best practices" for managing your transfer pricing policies and practices?
want to understand your options available for resolving disputes involving two or more territories?
Whatever your transfer pricing needs are our dedicated professional team are ready to work with you.
4. Stock Audit Stock audit, in general usage is considered as an important auditing term which refers to the physical verification of the
inventory.However at times, it may also involve the valuation of the inventory but it would depend on the terms of
reference or the engagement letter of the assignment. As far the stock audit process is concerned, the process mainly
involves the counting of physical stock presenting the specified premises and verifying the same with computed stock
maintained by the company. The reason and purpose behind executing this is to correct the discrepancies present in the
book stock when compared to physical stock by passing necessary adjustment entries.
Here are a few listed key benefits of stock audit :
a. Direct impact on costs
b. Prevent pilferage and fraud
c. Identifies slow moving stock, obsolete stock, dead stock and scrap
d. Third party independent opinion, especially for agent warehouses
e. Identifies gap in current inventory management process
f. Enable accurate valuation of inventory
5. Tax Audit Audit mandated by Income tax law are called ‘Tax Audit’. As the name itself suggests, Tax audit is an examination/review
of accounts of any business /profession carried out by the taxpayer from an income tax viewpoint. A Tax audit makes the
process of income computation for filing of return of income, much easier.
Tax audit is conducted to achieve the following objectives:
a. Ensure proper maintenance and correctness of books of accounts and certification of the same by tax auditor
b. Reporting of observations/discrepancies noted by tax auditor after a methodical examination of books of account
c. Reporting prescribed information such as tax depreciation, compliance of various provisions of income tax law etc.
This in turn enables and also saves time of tax authorities in verifying the correctness of income tax return filed
by the taxpayer such as total income, claim for deductions etc.