Audit and Assurance

What is an Audit?

An audit refers to an examination of the financial statements of a company. Audits are conducted to provide investors and other stakeholders with confidence that a company`s financial reports are accurate. Audits also provide regulators with the assurance that a company is adhering to the appropriate legal and regulatory standards.

It`s easy to think of an audit as a financial investigation, where a company`s financial statements are scrutinized by an external or internal auditor to ensure it is accurate and free of errors. After an audit, the auditor will provide an opinion on whether the financial statements accurately reflect the financial position of the company.

Broadly, Audit involves the following:

• Indepth study of existing systems, procedures and controls for proper understanding.  Suggestions for improvement and strengthening.
• Ensuring compliance with policies, procedures and statutes.
• Comprehensive review to ensure that the accounts are prepared in accordance with Generally Accepted Accounting Policies and applicable Accounting Standards/IFRS.
• Checking the genuineness of the expenses booked in accounts.
• Reporting inefficiencies at any operational level.
• Detection and prevention of leakages of income and suggesting corrective measures to prevent recurrence. 
• Certification of the books of account being in agreement with the Balance Sheet and Profit and Loss Account.
• Issue of  Audit Reports under various laws.

Types of Audits conducted

• Statutory Audit of Companies
• Tax Audit under Section 44AB of the Income Tax Act, 1961.
• Audit under other sections of the Income Tax Act, 1961 such as 80HHC, 80-IA, etc.
• Concurrent Audits.
• Revenue Audit of Banks.
• Branch Audits of Banks.
• Audit of PF Trusts, Charitable Trusts, Schools, etc.
• Audit of Co-operative Socities.
• Information System Audit
• Internal Audits.