The ability of a business to succeed largely depends on having a strong hold over finances and operations. However, as businesses grow and become more complex, it becomes difficult to ensure that everything is running smoothly. This is when audit for companies can prove beneficial. With the help of an audit, companies can assess their financial health, gain valuable insights into their operations, and make informed decisions to boost their overall efficiency.
At PKC Management Consulting, we understand the critical role of audits in ensuring the success and growth of businesses. Our team of experienced professionals has a proven track record of delivering high-quality and wide range of audit services. With our personalized approach and attention to detail, we can help your business achieve compliance, identify potential risks, optimize operations and boost your financial performance.
Understanding Audits & Requirements of Audit for Companies In India
An audit for companies is a systematic examination of a company’s financial and operational records to get an overview of its legitimacy, correctness and compliance with legal and regulatory requirements.
Types of Audits
Although companies in India conduct multiple kinds of audits, we can broadly classify them in two major categories:
Internal Audits
Internal audits are done by companies to assess their internal controls, identify inefficiencies, and mitigate risks. These audits can be conducted by the company’s internal audit team or an external auditor hired by the company. Some common types of internal audits include Compliance Audit, Performance Audit. IT Audit, Operational Audit, etc.
External Audits
External audit is a type of audit conducted by an independent external auditor to assess a company’s financial statements. This is mostly done to ensure compliance with applicable laws and regulations. Financial or statutory audit is one of the most well known external audit.
Audit for Companies in India: Mandatory Requirements
As per the Companies Act of 2013, every company registered in India is required to conduct a statutory audit. It is mandatory to have a company’s financial statements and fillings audited by a certified auditor, regardless of size, nature, or line of business. These audits can be in the form of financial audits, cost audit, tax audit, GST audit, concurrent audit, etc.
Apart from this, the Act and the Companies (Accounts) Rules, 2014 mandates that companies who satisfy certain conditions need to appoint an internal auditor to investigate their activities and functions. These conditions are related to reaching a borrowings and turnover mark.
Benefits of Audit for Companies
Conducting audits regularly provides several benefits to companies, regardless of their size or industry. Some of the key benefits include:
- Improved Financial Performance: An audit for companies helps identify discrepancies and weaknesses in the company’s finances. This information can be used to improve financial management.
- Increased Efficiency: By identifying areas of inefficiency and waste, audits can help businesses streamline operations, reduce costs, and improve overall performance. This results in increased productivity and profitability.
- Better Risk Management: An audit helps identify potential areas of risk and vulnerability, including fraud, errors, and compliance issues. This information can be used to develop and implement effective risk management strategies to protect the company’s assets.
- Improved Compliance: Audits help companies ensure compliance with applicable laws and regulations, such as the Companies Act, 2013, the Income Tax Act, 1961, etc. This compliance is essential for avoiding legal and financial penalties.
- Enhanced Credibility: Audits provide assurance to stakeholders, such as investors, lenders, and regulators, that the company is maintaining good regulatory and financial practices. This boosts its’s credibility and reputation in the market, which can increase access to investment opportunities.
Why is PKC The Right Choice for Audit for Companies?
There are several reasons why PKC Management Consulting is a leading choice for many organizations looking for auditing services. Some of these include:
Expert Practitioners
PKC has a team of experienced and skilled auditors who have in-depth knowledge of Indian laws and regulations. They have conducted audits for various companies across different industries, and are equipped to handle complex audit assignments.
Technology-Driven
We use the latest technology and tools to conduct audits efficiently and effectively. At PKC Management Consulting, we have invested in state-of-the-art audit software that ensures accuracy, reliability, and speed in audit processes.
Comprehensive Services
We offer comprehensive audit services that cover all aspects of a company’s financial and operational activities. Some of the most common services that we offer include financial audit, process audit, tax audit, due diligence audit, concurrent audit, etc.
Valuable Insights & Ongoing Support
At PKC, we go beyond just conducting audits and provide recommendations and insights to help companies improve their financial performance and operations. We also offer ongoing support to clients to ensure that they stay compliant with regulatory requirements and industry best practices.
Professionalism and Ethics
We adhere to the highest standards of professionalism and ethics in all our assignments. It is our constant endeavor to maintain confidentiality, independence, and objectivity, and follow a rigorous code of conduct to ensure highest quality of audit services.
PKC’s Effective 5-Step Approach to Conducting Accurate & Reliable Audit for Companies
Our experts follow the following steps for conducting audits:
Step 1: Defining objectives and scope of the audit including identifying areas, timeframe and expected outcomes
Step 2: Planning and preparing by developing an audit plan, identifying resources needed, and establishing communication channels with key stakeholders
Step 3: Gathering and analyzing data, interviewing key personnel, and testing the company’s financial and operational processes and procedures
Step 4: Preparing a report of findings and recommendations and presenting it to management.
Step 5: Implementing recommended changes, monitoring progress, and conducting subsequent audits to ensure continued compliance and improvement
With its wide range of audit services, proven approach and expertise, PKC Management Consulting can be your one step solution for all auditing needs.
Frequently Asked Questions (FAQ)
Companies need an audit for several reasons, including complying with regulatory requirements, identifying areas for improvement, and gaining investor or stakeholder confidence.
The frequency of audits depends on the size and nature of the company’s operations. Our seasoned experts at PKC Management Consulting suggest performing audits at least once a year.
At PKC, we are committed to providing accurate and relevant audit services. Our expertise in the country’s laws and regulations, focus on delivering valuable insights and ongoing support, and reputation for excellence speak for itself.
The length of an audit depends on the size and complexity of the company’s operations. Our auditors can take several weeks to several months to complete an audit depending on the assignment.
The price for an audit is typically based on the size and complexity of the company’s operations, as well as the scope of the audit. We provide customized quotes for each client based on their specific needs and requirements.
