Services
Audit & Assurance
An audit is an independent examination of financial statements and records. Depending on the entity and the law, an audit may be required under the Companies Act, the Income-tax Act or other statutes, or taken up voluntarily. This service covers statutory, tax and internal audit engagements, which are accepted subject to the Chartered Accountants Act, 1949 and the ICAI Code of Ethics.
What the service covers
- Statutory audit under the Companies Act, 2013
- Tax audit under Section 44AB of the Income-tax Act and filing of the audit report
- Internal audit and review of controls
- Audit of LLPs, firms and trusts, where applicable
- Certificates and attestations required by law or requested by lenders
- Documentation of audit work and a report of findings
Documents typically needed
- Trial balance and books of accounts
- Bank and loan statements
- Sales and purchase invoices
- GST returns and reconciliations
- TDS returns and challans
- Fixed asset register and inventory records
- Previous year’s audited financial statements
- Statutory registers and minutes, for companies
Questions
- What is the difference between a statutory audit and a tax audit?
- A statutory audit is required by company law or another statute and covers the financial statements. A tax audit is required under Section 44AB of the Income-tax Act when turnover or receipts cross specified limits, and results in a report in the prescribed forms.
- Who needs a tax audit?
- Businesses and professionals whose turnover or gross receipts exceed the limits in Section 44AB, and certain others under the presumptive taxation provisions. The limits can change and should be checked for the relevant year.
- Can audit and other services be provided to the same client?
- Restrictions apply under the Companies Act, 2013 and the ICAI Code of Ethics. The scope of an engagement is confirmed when it is accepted.