Overview
Auditing is the process of independently verifying the accuracy and completeness of financial statements and other information. An audit aims to assure that an organization’s financial statements and additional information are free from material errors, fraud, and misstatements.
Statutory audits in India are required by law in many jurisdictions and are usually conducted by certified public accountants (CPAs). It involves checking bank balances, financial transactions, and accounting records to ensure accuracy and comply with applicable laws and regulations.
With its Statutory Audit Consulting services, PKC India helps organizations in India comply with the statutory audit requirements of the Companies Act, 2013. We have a team of experienced chartered accountants and other professionals who can assist you with all aspects of the statutory audit process, from planning to execution and reporting.
Key Steps In Statutory Audits In India
The audit process typically includes the following :
Planning and risk assessment
The auditor assesses the client’s business risk and develops an audit plan accordingly. This includes identifying critical business areas and evaluating the likelihood of material misstatements.
Audit testing
The auditor tests the client’s internal controls and procedures to ensure effectiveness. It is typically succeeded by documentation review, employee interviews, and process observation.
Financial statement analysis
The auditor analyzes the client’s financial statements to identify potential errors or fraud. This includes reviewing balance sheet items, income statement items, and disclosures.
Audit reporting
The auditor writes a report detailing the audit findings in a format that the regulators dictate. The report is then shared with the client’s management and board of directors for further action.
Follow-up and closure
The auditor follows up with the client to ensure that all audit recommendations have been implemented. The audit is then closed once all outstanding issues have been resolved.
Why Opt For Statutory Audits?
01 – To improve financial reporting :
A statutory audit can help identify errors and fraud in financial statements. This, in turn, can help improve the quality of financial reporting.
02 – To comply with regulations :
In many jurisdictions, businesses must undergo a statutory audit in India. This helps ensure that they are compliant with applicable laws and regulations.
03 – To attract investors :
statutory audit can help boost investor confidence in a business. This is because it provides an independent and objective assessment of the business’s financial statements and other information.
04 – To improve governance :
A statutory audit can help improve the governance of a business by identifying control weaknesses and recommending improvements.
05 – To minimize tax liabilities :
A statutory audit in India can help identify tax deductions and exemptions for which a business may be eligible. This, in turn, can help minimize the amount of taxes payable.
Statutory Audit India Requirements
The audit process typically includes the following :
Planning and risk assessment
Mandatory statutory audit is required irrespective of the organization’s revenue, profits, or losses.
LLP
If the turnover in any financial year exceeds 40 lakhs, an audit is required. It is also needed if the contribution to the LLP exceeds 25 lakhs at any time during the financial year.
Proprietorship
A proprietorship must have a statutory audit completed by a CA if the turnover exceeds Rs. 1 crore or if the gross annual receipts in terms of a profession exceed Rs. 25 lakhs.
Why Opt For PKC Consultants For Statutory Audit In Chennai?
PKC India has a team of experienced chartered accountants and other professionals who can assist you with the statutory audit process, from planning to execution and reporting. We can help you ensure compliance with the requirements of the Companies Act, 2013 and other applicable laws and regulations. Key benefits of hiring us include:
01
Cost-effective and efficient service
We offer cost-effective and efficient statutory audits in Chennai consultation services to help you save time and money.02
Experienced and qualified team
Our team comprises experienced and skilled professionals with decades of cumulative experience in helping leading organizations with statutory audits in Chennai.03
Comprehensive service
We offer a comprehensive service that covers all aspects of the statutory audit process, from planning to execution and reporting.04
Timely support
We offer timely support and assistance to our clients, ensuring that all audit recommendations are implemented promptly to avoid penalties or fines.05
Customized service
We offer customized statutory audit services tailored to our client’s specific needs.06
Stringent quality control
We have a stringent quality control process to ensure that the highest standards dictate all audits.Frequently Asked Questions
The requirements for a statutory audit in India depend on the organization’s legal structure. Private companies and public companies must have a statutory audit regardless of their revenue, profits, or losses. LLPs are required to have a statutory audit if their turnover exceeds Rs. 40 lakhs or if their contribution to the LLP exceeds Rs. 25 lakh, and so on.
The cost of our statutory audit in Chennai consultation services is very affordable. We offer a customized service tailored to our client’s specific needs, which helps them save time and money. To get an accurate quote, get in touch with us.
The duration of our statutory audit services depends on the size and complexity of the organization. On average, our audit services take between _ to _ weeks to complete.
The frequency of statutory audits in India depends on the organization’s legal structure. Get in touch with us to understand accurate details of how often you need them.
PKC’s experts have in-depth knowledge and experience in conducting audits as per the Indian laws and regulations. We help our clients to identify the potential risks and issues in their businesses and provide them with practical solutions to mitigate those risks.
