Audit and Assurance

Statutory Audit

Statutory Audit under Companies Act, 2013

Applicability: Applicable to all Companies registered in India under the erstwhile Companies Act 1956 and Companies Act 2013 and Limited Liability Partnerships having turnover exceeding Rs 40 Lakhs or Contribution Rs.25 Lakhs.

We have sectorial experts to handle the audits efficiently and effectively.

Purpose: As companies be it Private Limited or Public Limited are viewed as highest level of organized business structure in India, they are considered to be governed strict rules to ensure that stake holders interests are protected. Statutory Audit is required to assess whether company is compliant with applicable laws, rules and standards and its financial statements reflect true and fair view of financial position of the company.

Internal Audit

Internal Audit is a management tool used to review and evaluate the operations of the entity and guide the management in the initiation of corrective action. Our internal audit team works in an independent and objective manner to add value and improve an organization's operational efficiencies.

Concurrent audit involves the examination of financial transactions to verify if they have been conducted in accordance with the systems and procedures laid down. We have been the concurrent auditors of several nationalized banks and our team has vast experience in the area

Statutorily also there requires some companies to have the Internal audit in place. The compulsory applicability of internal audit is discussed below

Applicability

Internal Audit provisions in Companies (Accounts) Rules 2014 – Rule 13: Applicability (Rule 13(1)): The following class of companies shall be required to appoint an internal auditor or a firm of internal auditors, namely:-

(a) Every listed company;

(b) Every unlisted public company having-

  • Paid up share capital of fifty crore rupees or more during the preceding financial year; or
  • Turnover of two hundred crore rupees or more during the preceding financial year; or
  • Outstanding loans or borrowings from banks or public financial institutions exceeding one hundred crore rupees or more at any point of time during the preceding financial year; or
  • Outstanding deposits of twenty five crore rupees or more at any point of time during the preceding financial year; and

(c) Every private company having-

  • Turnover of two hundred crore rupees or more during the preceding financial year; or
  • Outstanding loans or borrowings from banks or public financial institutions exceeding one hundred crore rupees or more at any point of time during the preceding financial year.

Purpose: As Companies grow risks and its impact increase, Statutory Auditors due to their limited review may not cover all the aspects. Internal Audit will help company in monitoring its activities having financial impact on the company by conducting timely review.

Management Audit

Management audit is an assurance service offered by us which involves the analysis and assessment of competencies and capabilities of a company's management in order to evaluate their effectiveness, especially with regard to the strategic objectives and policies of the business.

It guides the management to focus on areas of concern and works towards improving competitive edge and operational efficiency.

VAT and Service Tax Audit

Value Added Tax(VAT) and service tax are the most significant indirect taxes that every business entity encounters in the course of doing business. Under the VAT and service tax system, a major thrust is laid on the 'self-assessment' of tax liability by the Assessee. Hence arises the need for an independent auditor to audit business entities from the VAT and service tax angle.

Our team of professionals facilitate the determination of any under or over assessment made by the assessee, through the appropriate interpretation and application of the VAT and service tax provisions by offering VAT and service tax audit services.

Applicability: to persons (individuals, firms or companies) whose turnover during the financial year exceeds Rs. 1 Crore (Rs 10 Mio)

Purpose: Similar to Tax audit the purpose behind VAT audit is to ensure that person liable to pay tax is classifying the assets correctly and taxes paid after adjustment against vat paid on purchases is accurate

Public Sector Audit

Under public sector audit we provide audit services to

Banks:

  • Statutory Branch Audit,
  • Stock Audit,
  • Concurrent Audit,

Insurance Companies:

  • Statutory Audit
  • Tax Audit

Tax Audit under 44ab Income Tax Act

Applicability: to persons (individuals, firms or companies) whose turnover during the financial year exceeds limits specified i.e.

  • 1. For persons carrying on business Rs. 1 Crore or Rs 10 Million
  • 2. For persons carrying on profession Rs. 25 Lakhs Rs 2.5 Million
Purpose:

As India follows self-assessment method to assess income and taxes payable by a person, it is the responsibility of the person to follow all the rules prescribed under the Act. Tax Audit Service is a mechanism by which the Income Tax department would enforce the law effectively through an independent agency by ensuring that income declared in the return is accurate

Trust Audit

Applicability:

  • to persons (individuals, firms or companies) whose turnover during the financial year exceeds limits specified i.e.
  • Companies registered in India under Section 25 of the erstwhile Companies Act 1956 and section 8 of the Companies Act 2013
Purpose:

As India follows self-assessment method to assess income and taxes payable by a person, it is the responsibility of the person to follow all the rules prescribed under the Act. Tax Audit Service is a mechanism by which the Income Tax department would enforce the law effectively through an independent agency by ensuring that income declared in the return is accurate

IFRS Compliance

Our services relating to IFRS IFRS advisory services

  • Frame accounting policies
  • Convergence and first time adoption of IFRS
  • Transaction accounting
  • IFRS impact analysis/study
  • Training on IFRS concepts
  • Preparation of IFRS Accounting manual
IFRS – Frequently asked questions(FAQ)

What is IFRS?
International Financial Reporting Standards (IFRS) are a set of accounting standards developed by the International Accounting Standards Board (IASB). These are becoming the global standard for the preparation of public company financial statements

What is IASB ?
IASB is an independent accounting standard-setting body, which consists of 15 members from multiple countries and is based in London. This organization took over from the International Accounting Standards Committee in 2001. It is funded by contributions from major accounting firms, private financial institutions and industrial companies, central and development banks, and other international and professional organizations throughout the world.

How widespread is the adoption of IFRS around the world?
Approximately 120 nations and reporting jurisdictions permit or require IFRS for domestic listed companies, although approximately 90 countries have fully conformed with IFRS as promulgated by the IASB and include a statement acknowledging such conformity in audit reports.

What are the advantages of converting to IFRS?
Convergence with IFRS

  • As foreign individuals and institutions are investing more and more in Indian companies, convergence with IFRS will Improve investor confidence across the world with transparency and comparability
  • One standard across the industry will Improve inter-unit/ inter-firm/inter-industry comparison
  • With foreign subsidiaries in India and Indian Subsidiaries outside India, group consolidation is made easy with same standard by all companies in group wherever located
  • Acceptability of financial statements across all stock exchanges, which facilitates entry of any Indian company to any stock exchange across the globe

How difficult is it to converge Indian Accounting Standards with IFRS?
It will not be difficult as most of the Indian accounting standards are in line with IFRS. However, every corporate has to take the necessary step in understanding the new standards, training its staff and paving a smooth transition. The management at the top level should take interest in this regard. With the notification of Ind AS by Ministry of Corporate Affairs (MCA) Indian accounting standards are almost compliant with IFRS.

What is IndAS ?
Ind AS are a set of accounting standards notified by the Ministry of Corporate Affairs which are converged with International Financial Reporting Standards (IFRS). The Ind As have been prepared by NACAS and submitted its recommendation to MCA. The Ind AS are named and numbered in the same way as the corresponding IFRS

What is NACAS and what is its role ?
NACAS (National Advisory Committee on Accounting Standards) is a body set up under section 210A of the Companies Act, 1956 by the Government of India. advises the Central Government on the formulation and laying down of accounting policies and accounting standards for adoption by companies

© Copyright 2016 DOLPHY RONALD CARLO & CO. All Rights Reserved.
Designed by webbuild