Statutory Audit

All things regulated by the state law is defined as statutory. Statutory audit is referred to the inspection which is officially made by an independent party upon a company. A statutory audit involves the auditing of the company’s book of accounts as per requirement to ensure that the company’s financial records are presented accurately and correctly. Generally, in India, statutory audit deals with all the requirements as mandated by the Companies Act, 2013.

The right approach for performing statutory audit

The consistent questioning and microanalysis involved in the statutory audit can be daunting for the employees as well as the company. Irrespective of the size of the company or its net value, the audit procedure is the same which is why it is important to be prepared prior to the audit.

The following stages are involved in the process of statutory audit:

• Plan for the audit.
• Making a draft of the schedule and the plan.
• The Audit
• Verification of numerous registers and files.
• Auditors will then physically verify the stock-in trade.
• Presentation of the important files.
• Discussion and feedback
• Finally, the audit report is presented.

Tax Audit

When business is being conducted it is vital to have a knowledge of what exactly you are stepping into, what you need and how much you owe. All India ITR provides legal provisions applicable to tax audit so that you could conduct a legal and correct operation of the business.

Section 44AB of the Income Tax Act 1961 covers the provisions for tax audits in India. This section states that anyone falling below one of the following categories must have their accounts audited by a professional Chartered Accountant. The audit report must then be submitted before the due date of filing income tax return.

• Any business whose total turnover, sales or gross receipts exceeds Rs. 1 Crore.
• Any professional whose gross receipts is more than Rs. 25 Lakhs.
• Any business whose profits and gains from the business are calculated on a presumptive basis as per section 44AE, 44BB or 44BBB, however, the claim made on their income is lower than the actual profits or gains of business.
• Any business whose profits and gains from the business are calculated on a presumptive basis as per section 44AD however, the claim made on their income is lower than the actual profits, but exceeds the maximum non-chargeable amount of income tax.

Internal Audit

Internal Audit is a key factor in determining the assurance in the state of affairs of a business entity. As the name suggests, internal audit involves auditing within the entity. The role of internal audit is to understand, determine risks and evaluate the controls inside a business. Through this, a company can make optimum use of resources and identify any liabilities which can be harmful to business.

Advantages of Internal Audit

• Growth in the size of businesses.
• Internal Audit is a risk management as it helps understand exposure to any risk and provides internal controls to manage such risks.
• Increases transparency for establishing a sound corporate governance.

Functions of All India ITR as an Internal Auditor

• We review the operations, policies, and procedures of our clients to provide a better management system for fair policies and processes.
• Providing assurance on risks is our focus. Our auditing service ensures that the business is managed as per the exemplary limits laid down by the Board of Directors.
• Our team of experts examine and evaluate the effectiveness of the internal control system as well as provide professional advice on improving effectiveness.
• We assist the management in fulfilling its responsibilities for prevention or detection of fraud.