India: Why Auditing Service is Necessity

Last Updated: 12 October 2016
Article by AJSH & Co


An audit is more than a formality, it is a necessity to protect your business and encourage it to thrive. Early warnings, open communication and pragmatic resolution of issues are the essential features.

Audit testing procedures tailored to the specific audit, our firms maintain excellent relationships with their clients. This quality-led approach means members provide an intelligent, constructive and challenging audit to every one.

Statutory Audits : It is a legally required review of the accuracy of a company's or governments financial records. The purpose of a statutory audit is the same as the purpose of any other audit – to determine whether an organization is providing a fair and accurate representation of its financial position by examining information such as bank balances, book keeping records and financial transactions of both Public and Private Companies, Banks, Financial Institutions, PSU's, firms and Sole-Proprietors.

Internal Audit : Focus is to ensure strong internal control systems to minimize the risk of accidental or deliberate errors and omissions. Safeguarding of assets, adequate division of authority over key control areas and compliance with internal operating policies and guidelines are other focus areas.

Tax Audit : To prepare report in Form 3CA/3CB including annexure in Form 3CD as per div 44AB of the Income-Tax Act. We'll help with your IRS tax audit by:

  • Reviewing the tax authority notice or inquiry and explain what it means
  • Researching issues involved
  • Assisting you in assembling documents and records for the tax audit
  • Reviewing the tax audit findings and explaining them to you
  • Explaining the appeal process and other options available to you in the event you disagree with the tax authority's findings

Process / Transaction Audit : A process audit is an examination of results to determine whether the activities, resources and behaviors that cause them are being managed efficiently and effectively.

Management Audit : To assess the systems, methods and policies followed by an entity's management in the administration and the use of resources, tactical and strategic planning, and employee and organizational improvement.

Stock Audit: : It is carried out 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.

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.

Forensic / Risk Audit : Our forensic audit focuses on high risk areas and helps you strengthen your internal controls. Chartered accountant in Delhi

What is it : Forensic audit techniques seek to uncover corporate or other organization fraud. Results emanating from a forensic audit are typically used to support both civil litigation and criminal prosecutions. Forensic audit techniques can be broken down into five basic categories.

Testing Defences : Most businesses and other organizations have procedures and defences set up to prevent the occurrence of fraud. A good initial forensic audit technique is to attempt to circumvent these defences yourself. The weaknesses you find within the organization's controls will most probably guide you down the same path taken by suspected perpetrators. This technique requires you to attempt to put yourself in the shoes and think like your suspect.

Trend Analysis : Businesses have cycles and seasons much akin to nature itself. An expense or event within a business that would be analogous to a snowy day in the middle of summer is worth investigating. Careful review of your subject organization's historical norms is necessary in order for you to be able to discern the outlier event should it arise within your investigation.

Digital Forensic Examinations : Every transaction leaves a digital footprint in today's computer-driven society. Close scrutiny of relevant emails, accounting records, phone logs and target hard drives is a requisite facet of any modern forensic audit. Digital investigations can become quite complex and require support from trained digital investigators. However, many open-source digital forensics tools are now available to assist you in this phase of the investigation.

Face to Face Interviews : Forensic auditing is akin to detective work, and every good detective desires to look his witnesses and suspects in the eye. Personal interviews with the staff of your target entity yield a better understanding of its operations and of the culture that exists within it. According to John J. Hall of the Journal of Accountancy, critical information can be gleaned from interviews with parties who have knowledge of the events without being directly connected to the fraud.

Full Financial Auditing : Detailed financial audits can be complex and most often require the assistance of a qualified forensic accountant. Basic financial audit techniques include bank statement reconciliations, scrutiny of all vendor contracts and payments, review of tax returns and analysis of public filings. Financial forensic audit techniques seek to identify suspicious transactions and trace them back to potential perpetrators.

How we can help

  • Gather and analyze evidence
  • Integrate interview information with queries from databases, emails, and hard drives
  • Report our findings, review internal controls, and provide remediation options
  • Expert testimony

Internal Audit : The scope of the audit is defined as per the internal controls and is carried out with specific emphasis on cost control. The main purpose of an internal control audit system is to ensure no mistakes, omission or accidental or deliberate errors. Our team is well trained in safeguarding of assets and operating with internal guidelines and policies to ensure smooth procedures.

The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.

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