What we do
Our work in this practice group is structured around the records, deadlines, and decisions involved:
- Independent review of financial statements and accounting records.
- Assessment of material transactions and financial reporting accuracy.
- Identification of accounting errors and control weaknesses.
- Review of applicable statutory and regulatory compliance.
- Improved reliability of financial statements.
- Support for statutory audit reporting and documentation.
- Guidance on identified accounting or compliance matters.
How the engagement works
Company audits are primarily governed by the Companies Act, 2013, applicable rules, auditing standards issued or prescribed under the applicable legal framework, and the relevant accounting standards. Section 139 deals with appointment of auditors, while Section 143 sets out provisions relating to the powers and duties of auditors and audit reporting. Depending on the nature, size, turnover, borrowing, listing status, and other characteristics of the company, additional reporting or audit requirements may apply.
Scenario 1: A company requires its annual statutory audit and preparation of the audit report.
Scenario 2: Management wants an independent review of financial records before finalizing the annual financial statements.
Scenario 3: A company wants to identify accounting discrepancies, control weaknesses, or unusual transactions.
Scenario 4: A growing business needs professional assistance in strengthening its accounting processes and audit documentation.
Scenario 5: A company requires audit support for statutory filings, lender requirements, investor reporting, or other regulatory purposes.
Audit Planning & Risk Assessment
We understand the company’s business, accounting systems, significant transactions, financial reporting environment, and key audit risks and develop an appropriate audit approach.
Books & Accounting Records Review
We examine books of account, ledgers, vouchers, invoices, bank records, journal entries, fixed assets, receivables, payables, and other relevant accounting records.
Financial Statement Audit
We review the balance sheet, statement of profit and loss, cash flow statement where applicable, notes to accounts, and supporting schedules to assess financial reporting accuracy.
Internal Control Review
We evaluate relevant internal controls and processes and identify significant weaknesses, gaps, or areas where improvements may be appropriate.
Statutory Compliance Review
We review applicable corporate, accounting, tax, and other statutory matters relevant to the company’s financial statements and audit reporting.
Audit Reporting & Closure
We complete audit procedures, discuss identified matters with management, obtain relevant representations and evidence, and prepare the applicable audit report and related documentation.
Step-by-step process
Step 1: Business & Audit Planning
We understand the company’s business activities, accounting systems, financial reporting requirements, significant transactions, and key areas of audit risk.
Step 2: Records & Evidence Collection
We collect books of account, ledgers, bank statements, invoices, supporting documents, financial schedules, statutory records, and other relevant audit evidence.
Step 3: Detailed Audit Procedures
We perform appropriate audit procedures covering transactions, balances, financial statements, internal controls, statutory requirements, and other material areas.
Step 4: Findings & Management Discussion
We communicate identified discrepancies, audit observations, control weaknesses, and required adjustments or clarifications to management.
Step 5: Audit Finalization & Reporting
After completing the required procedures and obtaining sufficient appropriate audit evidence, we finalize the financial statements and issue the applicable audit report.
Key deliverables & outputs
General questions
01What is a company audit?
A company audit is an independent examination of a company’s financial statements, books of account, transactions, and relevant records to form an audit opinion in accordance with applicable legal, accounting, and auditing requirements.
02Is statutory audit mandatory for companies?
Companies incorporated under the Companies Act are generally subject to statutory audit requirements, subject to the applicable provisions and exemptions, if any. The exact requirements depend on the company’s legal status and circumstances.
03What is checked during a company audit?
An audit may cover books of account, bank transactions, sales and purchases, expenses, assets, liabilities, receivables, payables, taxes, related-party transactions, internal controls, financial statements, and other material areas.
04What documents are required for a company audit?
Common audit records include trial balance, general ledger, bank statements, invoices, purchase and sales records, expense documents, fixed asset records, loan statements, tax records, statutory registers, financial schedules, and supporting documents.
05What is the purpose of a statutory audit?
The purpose is to enable the auditor to express an independent opinion on whether the financial statements are prepared, in all material respects, in accordance with the applicable financial reporting framework and present a true and fair view.
06Can a company audit identify fraud?
Audit procedures may identify material misstatements, unusual transactions, control weaknesses, or indicators of fraud. However, a statutory audit is not a guarantee that every fraud will be detected. The nature and extent of procedures depend on applicable auditing standards and the assessed risks.
07What happens after the company audit is completed?
After completing the audit procedures, the auditor finalizes the audit documentation, discusses relevant matters with management, obtains required confirmations or representations, finalizes the financial statements, and issues the applicable audit report.
08Can you handle the complete annual company audit process?
Yes. We can assist with audit planning, accounting record review, financial statement audit, statutory compliance review, audit observations, finalization of accounts, and applicable audit reporting.