Audit And Assurance Services
A Glimpse of Audit Services in India
If you are running a business in India, you must have heard how businesses are concerned about getting the best audit services for their businesses.
An audit is an examination by the auditor of the books of accounts and other records that your business maintains, based on which an auditor issues an audit report. The audit process helps both businesses as well as stakeholders in various ways. For businesses, the advantage is that the businesses can be assured that they are headed in the right direction and that there are no manipulations in the accounts. On the other hand, stakeholders get assurance about the reliability of the financials based on which they can take their important decisions.
Types of Audits
While an audit is a general term, there are various types of audits that your business might undergo. That’s why you must know what the different types of audits are so that you can prepare yourself better for them.
1. Statutory Audits
The name comes from the term “statute” which means “by law”. So, a statutory audit means an audit that is required due to the operation of any law. In India, there are two main types of statutory audits namely company audit and tax audit.
2. Company Audit Services
All companies in India are required to get their annual audit done. The purpose behind company audits is to provide the stakeholders with the assurance that the financial statements of the company are reliable and free from any misstatements. Irrespective of the size or nature of the business, all companies must get their annual audit done. The companies are required to file their annual financial statements along with the audit report with the Ministry of Corporate Affairs, MCA
3. Internal Audits
Internal audits are done for providing an assurance to the management about the effectiveness of the controls placed in the business. An internal auditor will report if any internal gaps are there which affect the operations and the financial health of the company. Internal audits help the management to take corrective actions for their businesses and drive them in the correct direction.
4. Tax Audit Services
Tax audits are governed by Section 44AB of the Income Tax Act of India. The law mandates not only the companies but other businesses and professionals, to undergo a tax audit, in case they meet certain thresholds regarding sales or gross receipts. The purpose of tax audit is to ensure that taxes are correctly calculated and paid to the government. The tax audit forms are to be filed with the tax department every year.
There can’t be a straightforward answer to this question. If you are running your business through a company, then one kind of audit that is mandatory for you is the company audit. No matter what kind of business you do or what sales you achieve, company audit is a must for your company.
On the other hand, tax audit is only required for those businesses that meet certain threshold limits regarding sales or gross receipts. Only when you meet those threshold limits, your business would require a tax audit. The below table explains when you will need to avail tax audit services:
Similarly, internal audits are not a must for all companies. While all listed companies are required to conduct an internal audit, only those unlisted companies need to conduct an internal audit that meets certain conditions regarding sales, borrowings, share capital, and deposits. If you are not clear which audit compliances your company needs to meet, then our professionals at I Nagar & Co. can help you understand your compliance requirements and guide you for the same.
We at I Nagar & Co. believe that each client is unique and so are their business needs. And that is why we provide customized solutions to our clients by understanding their requirements and accessing what should be the best solution for them. We keep pace with the changing global scenarios with the best professionals who have years of experience in delivering quality assurance services to corporates.
We work from scratch to understand your business environment to maximize the benefits that you reap out of your audit arrangement with us. Our team works on building the right approach for your business and communicates all the audit requirements to you on time so that we can together move your business in the right direction.
If you are looking for audit services near Delhi/ NCR, then you can visit our office and we can discuss your requirements face-to-face.
How can we make your audit experience better?
The right mix of people, processes, and technology makes our audit services the right deal to go for! We make use of advanced audit tools that are technology-driven so that risks are reduced. During the audit process, we try to find out the gaps that might be there so that we can create opportunities to improve your business health. Thus, not only do we provide you the audit services but pitch in the game plan to make improvements in your business functions. This not only helps you to reduce your overall risk but also creates a way for improvements.
We provide a range of assurance services including,
- Statutory audit services
- Internal audit services
- Tax audit services
- Dormant company audit services
- IT audit services
- Quality assurance audit services
- Fixed assets audit services
- Revenue audit services
- Bank audit services
We can help you prepare the financial reports in compliance with the local Ind AS and IGAAP, including the following:
- Preparation of Financials for startups
- Creation of internal MIS
- Making useful dashboards for key stakeholders
We use latest auditing tools and methodology to deliver the audit results and our teams work in partnership with your personnel to understand your goals and aspirations.
1. What types of auditing services does I Nagar & Co. specialise in?
Internal audits, Stock audit, Statutory Audit, Concurrent Audit, Tax Audit, Forensic Audit, Internal Revenue Service (IRS) audits, etc. are all provided by I Nagar & Co.’s expert team of auditors.
3. Why is it necessary for a company's accounts to be audited by a Chartered Accountant?
The Companies Act of 2013 mandates that all businesses have their accounts audited. Within 30 days of the date of the financial year’s Annual General Meeting, every firm must submit financial statements and other documentation (including the auditor’s report) to MCA. As an attachment to AOC-4, an auditor’s report is necessary. Every company, regardless of its nature, is required to file an AOC-4.
5. What is a Tax Audit?
Tax Audit is an audit requirement flowing from Income Tax Act. Tax Audit is the systematic audit of the books of Accounts of a certain person as specified under Section 44AB of Income Tax Act, required to be conducted by practicing Chartered Accountants. It is conducted to ensure the truthiness and correctness of the total income of the assessee and to check proper allowances, deductions, and adjustments are done in accordance with the Income-tax laws.
2. How qualified are I Nagar & Co's auditors?
We have a team of professional and experienced auditors who will offer you with the most comprehensive report available for your company.
4. Which businesses are exempt from filing an annual return under the Companies Act of 2013?
Under Companies Act, 2013, Annual return is filed under e-form MGT-7 and e-form FC-4 (in case of foreign company). No company is exempted from filing annual return to ROC under Companies Act, 2013. Companies Act mandated every company to file annual return of a financial year by the specified due date, irrespective of their nature.
6. How long will it take for my audit to be completed?
The length of time it takes to complete an audit is determined by the nature of the business, its complexity, the quantity and the quality of documents, and any anomalies discovered in the Company’s records. .