Audit Advisory

The primary objective of an audit is to thoroughly examine financial statements to determine if they accurately and objectively depict a business or other entity. It involves a thorough analysis of financial records, transactions, and internal controls to ensure transparency and accountability. The main goal of an audit is to offer an opinion regarding the reliability and quality of the financial data so that decision-makers can make wise decisions. In short, the audit system in India is an important tool for management in identifying areas for improvement and making strategic choices to maximize growth potential as they provide a clear and accurate picture of the company’s financial health.

Our team of professionals works closely, yet independently, with our clients in helping them meet the financial reporting challenges in present changing business environment.

We understand our responsibility towards the investor and our obligation to provide him with complete assurance on the financial statements. We believe in and strongly encourage transparency, open communication, enhanced disclosure and accountability.

Our audit advisory focuses on formulation of detailed audit plans and execution procedures in order to ensure in-depth checking of audit data and its comprehensive analysis to enhance the quality of the audit and thus, reliability of the financial statements for any stakeholder.

Broadly, Audit involves the following:

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

Types of Audits conducted:

There are various types of tax audit services offered in India to cater to different aspects of business operations. Some important types of audit services in India include –

External Audit: The term “external audit” describes the services offered by chartered accountant firm in India that focus on doing audits, supplying assurance, and offering tax consulting. An external audit’s goal is to evaluate the truthfulness, reliability, and fairness of an organization’s financial statements. To verify that the organization is complying with accounting standards and regulatory obligations, external audit companies review its financial records, transactions, and internal controls. Our external audit service allows firms to take benefit of our expertise, assure compliance with auditing standards, and gain insightful advice.

Internal Audit: Internal audit advisory services are corporate consulting service that aims to improve business processes and increase organizational value. It uses a structured and methodical evaluation and assessment process to analyze and rank factors including risk management, internal control, and corporate governance. The scope of internal audit is determined by the audit committee or board of directors, who hold equal authority in the decision-making process. The primary goal of internal audit services is to offer unbiased, independent analysis, suggestions, and assurance to help the organization run and perform better.

Forensic Audit:A forensic audit is a specialized form of audit service that focuses on investigating financial irregularities and potential fraud within an organization. Forensic auditors use investigative methods and forensic accounting methodology to look for signs of deliberate fraud, financial manipulation, or money laundering. The results of a forensic audit may be used as evidence in court proceedings, and the investigators may work with law enforcement or legal authorities.

Statutory Audit: A statutory audit is a kind of audit that certain organizations are required to conduct by federal, state, or municipal regulations. It involves examining financial statements to confirm that they comply with legal standards. Organizations must meet certain requirements, such as yearly turnover, number of employees, and asset worth before they can be subject to a statutory audit. Companies that are listed on a stock exchange are typically required to do a statutory audit of their financial statements.

Financial Audit:A financial statement audit is often performed once a year at the end of the accounting year, but sometimes it can be done every quarter. While conducting the audit, the auditor follows a set of standards to make sure that both local laws and international standards are met. The main purpose of financial audit services is to make sure that the financial statements are accurate, reliable, and complete. It also ensures the company’s shareholders and investors about its financial status and performance.

Tax Audit:A tax audit is conducted by the government’s tax department or tax authority. It takes place when there is a suspicion of tax law violations. A tax audit process is conducted to confirm that a company has complied with all the regulations outlined by the tax law. Tax audit services aim to minimize the penalties that may arise from the audit.

Information System Audit:Information system audits are one type of audit that focuses on evaluating the dependability of security systems, information security structures, and the integrity of computer systems. It guarantees that people can trust the data and output produced by these systems. With the increasing use of technology, many financial reports and data are stored and processed using accounting software.

Compliance Audit:A compliance audit is carried out to confirm that a business is following its internal policies and processes as well as the relevant laws and regulations in the region in which it operates. This kind of audit looks at how well the company’s procedures follow the standards and regulatory requirements. It is an essential component of the organization’s management system and it helps in ensuring that rules and regulations are implemented effectively.

Audit Services in India

There is various audit some are mandatory some are voluntarily done by an individual or businesses. Audit services in India can be categorized in the below points:

Statutory Audits : Under this comes various audits as required by statutory that can be under the income tax, under company laws, under banking laws, under GST laws, so this category has a huge scope under audit services in India.

Internal Audits: This is mandatory for certain classes however mostly organization makes it a part of the business because of its significance in assessing the organization current affairs and preventing and detecting any error or frauds.

Management Audit: This category of the audit is to assess and recommend the resources, asset, strategies followed by the organization is in the right shape and going in a planned direction.

What is the Process of Conducting Audit Services?

Obtaining Financial Records: The auditor normally starts the audit by asking for certain documents included on the audit preliminary checklist after informing the organization of the upcoming audit. These records typically include the previous audit report, original bank statements, receipts, and ledgers.

The auditor may also request organizational charts to comprehend the organization’s structure as well as copies of board and committee minutes to obtain insight into important decision-making procedures.

Making an Audit Plan: The auditor creates a plan defining the goals, parameters, and steps of the internal audit process. This includes choosing the areas to be audited, its timetable, and the resources needed to conduct it efficiently.

Organizing an Open Meeting: An open meeting is scheduled where senior management and key administrative staff members are invited to attend. During this meeting, the auditor presents the scope of the audit, outlining the areas that will be examined and the objectives of the audit. Together, they decide on an appropriate audit timeframe, taking into account any potential schedule conflicts like upcoming vacations or significant events. Furthermore, department leaders may be asked to let their staff members know whether or not the auditor might interview them. This will make sure that everyone is aware of and ready for any potential talks or questions throughout the audit process.

Conducting Onsite Fieldwork: The auditor completes the audit plan based on the knowledge gained from the open meeting. Fieldwork includes examining protocols, speaking with staff, and finding any problems. The organization is given a chance to reply and deal with the issues identified by the auditor.

Drafting Report: The auditor then creates a thorough report summarising all the results after the audit is finished. This report contains information on any discovered mathematical mistakes, unprocessed payments, posting issues, and other irregularities. The auditor concludes the report with a summary outlining the main conclusions and suggesting better solutions to deal with the difficulties or problems that were discovered.

Organizing the Closing Meeting: After submitting the audit report, the auditor contacts management to get a response regarding the issues raised in the report. The management must give a thorough explanation of their action plan, including how they expect to solve the problems they have discovered. This meeting provides a platform for resolving any outstanding issues and confirming that the management has effectively handled and accounted for all concerns presented during the audit.

How does The Startup Trends help clients with audit advisory services in India?

• Conducting audits in specialized areas to ensure accuracy and compliance in specific areas of an organization’s operations.
• Identifying high-risk areas within the organization and implementing solutions to reduce or eliminate those risks.
• Creating internal audit systems for newly founded businesses to ensure efficient internal controls and risk management from the beginning.
• To improve the knowledge and abilities of staff employees in conducting internal audits, internal audit procedures training is provided.
• Regularly reviewing and monitoring both external and internal audit compliance to maintain the efficiency of the audit function and to address any issues or areas for improvement.