Audit & Assurances
Audits are the basic structure square of viable capital business sectors. Our review work gives quality, respectability, specialized greatness, remarkable help and an expansive comprehension of money related and non monetary variables. Great audits upgrade trust and trust in the capital business sectors and encourage monetary development.
Our Expertise
Statutory Audit
Internal Audit
Tax & GST Audit
Statutory Audit
In the audit of Private Limited Companies, the provisions for a company audit are always contained in the Companies Act, 1956. The companies irrespective of their nature of business or turnover must have its annual accounts audited each fiscal year. For this purpose, the company and the directors of the company have to first appoint an auditor at the outset. Hence at each annual general meeting (AGM), an auditor is appointed by the shareholders of the company who will hold the position from one AGM to the conclusion of the next AGM. In individual as well as the partnership firms, the same auditors cannot be appointed for more than one or two terms. Therefore, after the completion of the term, the auditor should be always be changed.
Required by
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All companies, irrespective of nature of business and sales turnover must appoint a Statutory Auditor.
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All Limited Liability Partnership (LLP) must have its accounts audited if the annual sales turnover exceeds Rs.40 lakhs or if capital contribution exceeds Rs.25 lakhs.
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Proprietorship firm must complete a tax audit by a Chartered Accountant if the annual sales turnover exceeds Rs.1 crore in terms of business or if annual gross receipts exceed Rs.25 lakhs in terms of a Profession.
Functions of Audit
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Review and Evaluate the risk management so that changes are made accordingly.
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Evaluate the relevance, reliability of management, financial information and internal control systems.
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Provides recommendations on the operational and management procedures of the company.
Internal Audit
Internal Audit is the check to assess the risk management and to ensure that risk management processes are efficient, effective, secure and compliant. It is the basic check of internal control of the organization. An internal audit is an organizational move to check, ensure, monitor and analyze its own business operations in order to determine how well it conforms to a set of specific criteria. According to Section 138(1) of the Companies Act, 2013, such class or classes of companies as may be prescribed shall be required to appoint an internal auditor, who shall either be a chartered accountant or a cost accountant, or such other professional as may be decided by the Board to conduct internal audit of the functions and activities of the company.
Required by
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Every listed company;
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Every unlisted public company having met following conditions during or at any point of time in their previous financial year-
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a) paid up share capital of fifty crore rupees or more
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b) turnover of two hundred crore rupees or more
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c) outstanding loans or borrowings exceeding one hundred crore rupees or more
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d) outstanding deposits of twenty five crore rupees or more
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Every private company having met following conditions during or at any point of time in their previous financial year-
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a) turnover of two hundred crore rupees or more
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b) outstanding loans or borrowings from banks or public financial institutions exceeding one hundred crore rupees or more
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Provided that an existing company covered under any of the above criteria shall comply with the requirements of section 138 and this rule within six months of commencement of such section.
Functions of Audit
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Internal audit is about having a third party (the auditor), evaluate something, against specific criteria.
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Reviewing items and comparing them to the expectation (Were the right things done?)
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Identifying exceptions (“That doesn’t look correct; there could be a problem.”)
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Evaluating exceptions (“This is incorrect because…someone needs training, or someone is acting badly.”)
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Fixing any errors that can be fixed
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Recommending improvements to avoid exceptions in the future (making the process better), and helping to mature processes and auditability
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The purpose of the review is to make things better; to review and then improve. The role of the auditor is to act as an independent party: management decided to do things one way, and the question is whether the independent party (the auditor), agrees with the approach.
GST Audit
GST Act of 2017 prescribes yearly Audit under GST regime return and Provide a GST Audit report which is also known as GST reconciliation report (As the nature of Audit Under GST) in Form No GSTR-9C.The Prescribed Limit for GST Audit limit is 2 cr exceeding which a Registered GST Dealer or Service Provider need to undertake audit under GST. GST Audit Due date for the 1st year of GST Audit has been extended to 30th August 2019. Audit Under GST can be Undertaken only after filing of Annual GST Return in the form of GSTR 9.
Required by
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If the annual turnover of a registered taxpayer is more than Rs. 2 crores^ in a financial year , he is required to get his accounts audited by a Chartered Accountant or Cost Accountant every year.
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A financial year covers the 12-month period beginning from April of a calendar year to March of the next calendar year.
Functions of Audit
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That to verify the correctness of turnover declared, taxes paid, refund claimed and input tax credit availed by assessee.
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That to examine the record of return and other document maintained or furnished by the assessee.
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That GST is a self assessment based tax, so to keep an eye to prevent the frauds in GST a robust audit mechanism to measure and ensure compliance of the provisions of law by the taxable person.
Tax Audit
Tax Audit requirement under Income Tax Act 1961 is turnover based and Tax Audit is applicable to only those Taxpayers whose turnover exceeds specified Limits in the previous year. As provided in Section 44AB of Income Tax Act, the turnover for tax audit applicability is Rs 1 cr for Trader & manufacturer of Goods while for Provider of Services Gross receipt limit is Rs 50/- Lakh. Further Tax Audit also required in case a person is declaring lower net profit while declaring income U/s 44AD, 44ADA or 44AE. The last date / due date to submit Tax Audit in 30th September of Assessment Year. The tax Audit report is submitted in for 3CA-3CB. The whole procedure of tax audit is to ensure the Income Tax compliance has been properly manner.
Required by
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A taxpayer is required to have a tax audit carried out if the sales, turnover or gross receipts of business exceed Rs 1 crore in the financial year. However, a taxpayer may be required to get their accounts audited in certain other circumstances. We have categorised the various circumstances in the tables mentioned below:
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The threshold limit of Rs 1 crore for a tax audit is proposed to be increased to Rs 5 crore with effect from AY 2020-21 (FY 2019-20) if the taxpayer’s cash receipts are limited to 5% of the gross receipts or turnover, and if the taxpayer’s cash payments are limited to 5% of the aggregate payments.
Functions of Audit
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Ensure proper maintenance and correctness of books of accounts and certification of the same by a tax auditor
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Reporting observations/discrepancies noted by tax auditor after a methodical examination of the books of account
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To report prescribed information such as tax depreciation, compliance of various provisions of income tax law etc.
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All these enable tax authorities in verifying the correctness of income tax returns filed by the taxpayer. Calculation and verification of total income, claim for deductions etc. also becomes easier.