Audit related Services:
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Statutory Audit
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Internal Audit
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Tax Audit
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Stock Audit & Assets Verification
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Cost Audit
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Revenue and Expenditure Audit
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Forensic Audit
Internal Audit:
Applicability: Mandatory for companies based on criteria like turnover, paid-up capital, and outstanding loans as per Section 138 of the Companies Act, 2013.
Requirements: Conducted by internal auditors (CAs, CMAs, or professionals with relevant expertise).Reporting on risk management, internal controls, compliance, and operational efficiency.
Latest Amendments: Enhanced role of internal auditors in corporate governance. Introduction of new areas of internal audit, including ESG (Environmental, Social, and Governance) compliance.
Statutory Audit:
Applicability: Mandatory for all companies registered under the Companies Act, 2013.
Requirements: Audit to be conducted by a Chartered Accountant or firm of CAs.
Submission of the audit report (including CARO 2024) and financial statements to the Registrar of Companies.
Latest Amendments: Expanded reporting requirements under CARO 2024.Increased focus on related party transactions, corporate social responsibility (CSR), and internal financial controls.
Tax Audit:
Applicability: Mandatory for businesses with turnover exceeding ₹1 crore (₹10 crore if cash receipts/payments are below 5%).For professionals, if gross receipts exceed ₹50 lakhs.
Requirements: Filing of Form 3CA/3CB and 3CD by the due date (31st October 2024 for FY 2023-24).Reporting on compliance with income tax laws, accuracy of income tax returns, and ensuring that accounts are maintained as per the IT Act.
Latest Amendments: Increased turnover limit for digital transactions. Enhanced scope of reporting under Form 3CD, including GST compliance checks.
Stock Audit:
Applicability: Not mandatory by law but often required by banks and financial institutions for companies availing credit facilities.
Requirements: Verification of inventory records, valuation, and reconciliation with financial statements. Ensuring accuracy of stock records and their alignment with bank borrowings.
Latest Amendments: Updated guidelines on stock audit frequency for companies with high levels of working capital borrowings. New focus areas, including inventory obsolescence and slow-moving stock.
Cost Audit:
Applicability: Mandatory for companies engaged in manufacturing or service sectors covered under specified rules where turnover exceeds prescribed limits.
Requirements: Appointment of a Cost Accountant or firm of Cost Accountants. Submission of cost audit report in prescribed form to the Board of Directors and Central Government.
Latest Amendments: Revised rules under Companies (Cost Records and Audit) Rules, 2024.Enhanced disclosures in cost audit reports, particularly concerning sustainability and environmental costs.