Audit under Companies Act 2013

Proper and accurate preparation of financial statements by the companies and its disclosure, in a manner that is standardized and understood by stakeholders and its audit under Companies Act 2013 is central to the credibility of the corporates and soundness of investment decisions by the investors. The financial statements preparation, disclosures and its audit for Companies is regulated through solid law with stringent provisions to set high corporate governance and fair reporting among corporates. The Companies Act 2013 has made the audit of accounts of companies’ compulsory. Section 139 to 148 provide for the qualifications, disqualifications...[read more]

Audit of LLP

Section 34 of the LLP Act 2008, deals with Maintenance of books of account, other records and audit. According to this section following requirements are to be complied:

  1. Every LLP shall maintain such proper books of account in accordance with Rule 24 of LLP, Rules 2009, relating to its affairs for each year of its existence on cash basis or accrual basis and according to the double-entry system of accounting and shall maintain the same at its registered office for such period.
  2. Every LLP shall, within a period of 30 days from the end of six months of the financial year...[read more]

Tax Audit under Income Tax Act 1961

The Income-tax Law requires the taxpayer to get the audit of the accounts of his business/profession from the viewpoint of Income-tax Law.

Section 44AB gives the provisions relating to the class of taxpayers who are required to get their accounts audited from a chartered accountant. The audit under section 44AB aims to ascertain the compliance of various provisions of the Income-tax Law and the fulfilment of other requirements of the Income-tax Law. The audit conducted by the chartered accountant of the accounts of the taxpayer in pursuance of the requirement of section 44AB is called tax audit...[read more]

Internal Audit and Concurrent Audits

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.

The concurrent audit aims at shortening the interval between a transaction and its independent examination. It is, therefore, integral to the establishment of sound internal accounting functions and effective controls and is regarded as part of a business entity early warning...[read more]

Bank and Government Audits

The statutory audit of banks forms an integral and important part of the control mechanism of the banking sector. Statutory Audits of Banks are governed by Reserve Bank of India and are conducted in accordance with Banking Regulation Act, 1949, and the guidelines/ directions issued by the RBI under the said statutes, from time to time. Statutory Audit of Bank is compulsory and auditors are appointed by RBI, in co-ordinating with ICAI. Appointment of Statutory Auditors (Statutory Central Auditors and Statutory Branch Auditors) is being done on the basis of the guidelines issued by the Government of India (GOI)/ Reserve Bank of India (RBI) from time to time. C&AG will empanel the Audit Firms based on the specified... [read more]

Audit of NGO's

Non-Governmental Organisations (NGOs) play a very significant role in the process of social and economic development of an economy. Over time, there has been a substantial increase in the activities of the Indian NGOs. A sound accounting and financial reporting framework act as an important ingredient for promoting accountability and for the development of the NGO Sector. The NGOs are mainly operating under

  1. Societies registered under the Societies Registration Act 1860;
  2. Public Trusts;
  3. Trusts registered under State enactments; and
  4. Other NGOs set up...[read more]

Stock Audit or Audit of Inventory

For a Manufacturing Business entity or Trading Business entity, Inventories are usually important and material items in their Financial Statements. Therefore, adequate controls on the Inventory and Independent check from an external independent & professional firm, review of Inventory Valuation and recording system are very important. Further these assets are normally hypothecated to banks for availing various forms of loans and therefore it is also essential for the bank to have audit checks on the borrowers' Inventories as RBI and Banks Internal Guidelines

Our firm with Qualified Chartered Account and experienced professionals will provide Stock Audit Services as per generally accepted auditing principles...[read more]

Audit of Fixed Asset

The Main Objective of the Fixed Asset Audit is to check the following:

  1. Existence of Fixed Asset
  2. To ensure the Correctness of the entities Capitalisation and accounting policy
  3. Completeness and accuracy of Fixed Asset Registers and records maintained by the entity
  4. Compliance towards Accounting Standards and Guidance Notes Issued
  5. Whether Depreciation is calculated as per the applicable framework or statute
  6. Whether Disposal of Fixed Assets and Impairments if any is right accounted
  7. ...[read more]

Transfer Pricing Audit

Commercial transactions between the different parts of the multinational groups may not be subject to the same market forces shaping relations between the two independent firms. One party transfers to another, goods or services, for a price. That price is known as "transfer price". “Transfer pricing” refers to the setting of prices at which transactions occur involving the transfer of property/goods or services between associated enterprises, forming part of an international group company.

This may be arbitrary and dictated, with no relation to cost and added value, diverge from the market forces. Transfer price is, thus, a price that represents the value of good; or services between independently operating...[read more]