Audit & Assurance Services
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Business Incorporation & Compliance
Registration & Certification Services
GST Advisory & Compliance
Income Tax Advisory & Compliance
Accounting and Payroll Services
Audit & Assurance Services
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Financial Insights
The main focus of our audit and assurance team is to provide quality services that suit your needs, to offer helpful suggestions that develop your operations, to give financial guidance, when necessary, to provide you the Best Audit Service in Delhi, and to deliver a level of service that result in a long-lasting relationship. We aim to be first on your mind when you have any questions, and we take a suitable time to form that good relationship.
Let us have an overview of Audit and Assurance Services!
What is an Audit?
The term audit usually refers to a review of the financial statement. A financial audit is an unbiased examination and evaluation of the financial statements of an organisation to ensure that the financial records represent a true and fair view of the business transactions they claim to perform. The audit can be conducted within the organisation by its employees itself or externally by engaging an outside chartered accountant firm.
What is Assurance Service?
Assurance services are an independent professional service ordinarily provided by chartered accountants. Assurance services can include an examination of any financial document or transaction, such as a loan, any contract or arrangement, etc. This review verifies the correctness and validity of the item being reviewed by the professionals.
Assurance services providers help clients navigate the complexities, risks, uncertainties and opportunities in their companion networks by proactively handling and monitoring risks presented by third-party relationships. Businesses typically use assurance services to improve the transparency, importance, and value of the information they reveal to the market and investors. Many find by sharing business accomplishment better; it becomes a sustainable growth and competitive for differentiation strategy.
Audit and Assurance at K ALOK & ASSOCIATES
We, one of the best auditing firms, are known for providing the best audit services in Delhi. We provide a range of services including, but not limited, to the following:
A Statutory Audit is a mandatory audit of a company’s financial statements to ensure they are accurate and comply with legal and regulatory requirements.
- What happens in this audit?
Auditors review the company’s financial records, transactions, and compliance with relevant accounting standards and laws such as the Companies Act, 2013. The process includes verifying income, expenses, assets, and liabilities to detect discrepancies or fraud. - Why is it important?
It ensures the financial health and credibility of the company, builds stakeholder confidence, and fulfills legal obligations. - Penalties for non-compliance:
Non-compliance can lead to penalties under the Companies Act, including fines for the company and its officers. Additionally, incorrect financial reporting could harm the company’s reputation and lead to legal action.
2. Tax Audit
A Tax Audit is conducted under Section 44AB of the Income Tax Act to ensure that taxpayers comply with the provisions of the Act.
- What happens in this audit?
The auditor examines the taxpayer’s accounts and prepares a report in Form 3CA/3CB and Form 3CD, focusing on compliance with income tax laws, proper reporting of income, deductions, and tax liability. - Why is it important?
It ensures accurate reporting of taxable income, helps detect tax evasion, and simplifies the assessment process for tax authorities. - Penalties for non-compliance:
Failure to get a tax audit done or delay in submission can attract a penalty of 0.5% of turnover or gross receipts, up to a maximum of ₹1.5 lakh.
3. GST Audit
A GST Audit is the examination of records maintained under the Goods and Services Tax (GST) laws to verify accuracy, compliance, and tax liability.
- What happens in this audit?
It involves reviewing the GST returns filed, invoices, input tax credits claimed, and tax payments made during the financial year. If turnover exceeds ₹2 crore (₹5 crore since FY 2020-21 for annual returns), an audit is mandatory. - Why is it important?
It ensures proper tax compliance, accurate filing of GST returns, and avoids disputes with the GST department. - Penalties for non-compliance:
Incorrect or delayed filing of GST returns can result in penalties, interest on unpaid tax, and scrutiny from tax authorities.
An Internal Audit is a voluntary audit conducted by companies to evaluate their internal controls, processes, and risk management systems.
- What happens in this audit?
Internal auditors analyze financial operations, compliance processes, operational efficiency, and potential risks to provide recommendations for improvement. - Why is it important?
It strengthens governance, ensures operational efficiency, detects fraud, and helps in strategic decision-making. - Penalties for non-compliance:
While not legally required for all companies, neglecting internal audits can lead to undetected inefficiencies, financial loss, and reputational damage.
A Transfer Pricing Audit ensures that transactions between related parties (such as subsidiaries and parent companies) comply with the arm’s length principle under the Income Tax Act.
- What happens in this audit?
The auditor examines pricing of cross-border or domestic transactions between associated enterprises to verify compliance with transfer pricing regulations. This includes analyzing documentation, benchmarking, and financial agreements. - Why is it important?
It ensures fair tax revenue for the government, prevents tax evasion through profit shifting, and fosters compliance with international tax laws. - Penalties for non-compliance:
Failure to maintain proper documentation or justify pricing can result in penalties up to 2% of the transaction value. Incorrect reporting can attract additional fines and scrutiny.
Each of these audits plays a crucial role in ensuring financial transparency, regulatory compliance, and operational efficiency for businesses in India.
How can we help?
Meeting and fulfilling client’s needs requires us to stay updated on every change in the field of auditing, as well as being conscious of the issues that you may face both internally and externally. We pride ourselves on our technical expertise, and our internal control standards enable us to stay abreast of all the developments in the auditing and assurance field. We also devote time for conferences and seminars to stay informed on significant changes within the industries in which our clients operate. While performing an audit, we always look for areas of improvement and provide suggestions on every notable change.
We, at K ALOK & ASSOCIATES help in providing top audit and assurance services in Delhi and engage our prestigious clients on an ongoing basis to ensure that statutory and regulatory requirements are adhered to. This includes the required disclosures and value-added Services. We promise quality audit assurance services in Delhi so that you can spot hidden potential and prospective trouble areas in your business. We work with the highest possible levels of integrity and professional ethics while maintaining the required business standards.
We, being one the best audit companies in India, believe that audits are an ongoing process that should never interfere with business operations. Hence, prior planning and adequate staffing are essential to ensure there is no delay in services. We try to get an in-depth understanding of the operations of an organisation before beginning an audit. What makes us a unique audit firm in Delhi is that all our services are tailor-made to the needs of a company and the objectives to be achieved. This needs a well-defined knowledge of the goals, operating policies of your business, regulatory as well as information requirements.
We also promise quality assurance services so that you can spot hidden potential and prospective trouble areas in your business. We work with the highest possible levels of integrity and professional ethics while maintaining the required business standards.
If you are seeking audit and assurance service in India or looking for the best audit firms in India or bank audit consultant in India, reach out to us at info@kalok.in and enjoy the services with exemplary commitment from our team of experts.
Services
Business Incorporation & Compliance
Registration & Certification Services
GST Advisory & Compliance
Income Tax Advisory & Compliance
Accounting and Payroll Services
Audit & Assurance Services
International Tax Services
Dubai Taxation Services
Financial Insights
Frequently Asked Questions
What is the objective of conducting an Audit?
The objective of conducting an Audit is to form an independent opinion on the financial statements of an organisation. The opinion comprises whether the financial statements show a true and fair view of the entity’s financial performance & financial position and have been properly prepared in accordance with the applicable Accounting Standards and reporting framework.
What is the Duty of an Auditor?
As per Section 143 of the Companies Act, 2013, the major duties of an auditor include:
- Duty to enquire on certain matters
- One of the auditor’s main duties is to make inquiries when he finds it necessary. A few examples of such enquiries are:
- whether any personal expenses have been booked in the Revenue Account
- whether loans made by the company have been shown as deposits
- One of the auditor’s main duties is to make inquiries when he finds it necessary. A few examples of such enquiries are:
- Duty to comply with Auditing Standards
- The Auditing Standards aid the auditor in conducting his audit duties with relevant efficiency and accuracy. The auditor must comply with these standards while performing his duties.
- Duty to report on frauds
- Since an auditor examines the books of accounts of a company, sometimes he may uncover a fraudulent transaction. In such cases, he must report the fraud to the Central Government or the Board of the Company, as the case may be applicable.
- Duty in case of a branch audit
- In a case where the auditor is the branch auditor and not the auditor of the entity, he is responsible for assisting in the completion of the branch audit. He shall prepare a report based on the accounts of the branch as examined by him and send it across to the company auditor. The company auditor will then incorporate this report into the main audit report of the company.
- Duty to report
- The auditor is liable for preparing an audit report based on the examination of the company’s financial statements. He must ensure that the books of accounts and financial statements comply with relevant laws such as the Companies Act 2013.
- In addition to this, he must ensure that the entity’s financial statements depict a true and fair view of the entity’s affairs at the end of its financial year.
- Duty to state the reasons for qualification or negative report
- If any matters required to be included in the audit report are answered negatively or with a qualification, the auditor must state the reasons thereof.
- Duty to sign the audit report
- The auditor must sign the audit report issued by him after carrying out the audit procedure.
What are the Types of Audits?
There are many types of audits that can be conducted depending on the area of focus and information required out of audit. Based on the legal obligation, audits can be broadly classified as follows:
1. Audit required under law
Certain types of audits are mandated to be conducted by law. The examples include:
- Tax Audit: The Income Tax Law requires certain assessees to get the accounts of their business/profession audited from the viewpoint of the Income Tax Act.
- Statutory Audit: As per the Companies Act 2013, every company is required to conduct a statutory audit to assess whether it complies with the applicable laws, rules, and regulations and whether the financial statements reflect a true and fair view of its financial position.
2: Audit under Voluntary Category
There are various types of audits that are not required by any law, but many enterprises conduct them as a matter of internal rules. The examples include:
- Stock Audit: Stock audit means physical verification of the inventory. It helps to maintain inventory accuracy, prevent pilferage and fraud, identify the gap in the inventory management process and ensure that the entity always has the correct quantity of stock at the right time.
- Management Audit: Management Audit is a kind of appraisal in which the performance of the overall management is evaluated through a comprehensive assessment by an independent authority.
Is Audit the same as Accounting?
No, Audit is not the same as accounting.While accounting deals with identifying, recording, classifying, summarising and interpreting the financial transactions to determine the financial position and performance of an organisation, auditing fulfils the role of verifying the accuracy of the accounts and financial statements of the organisation. Auditing in many ways determines the integrity of the whole accounting system of a company.
What is the difference between Audit and Assurance Services?
Audit is a process of closely monitoring the accounting information presented in a company’s financial statements. On the other hand, Assurance involves assessing and analysing different operations, processes, and procedures.
What is the importance of Tax Audit?
Tax audit is important to ensure compliance with tax laws and regulations, detect errors, prevent fraud, and avoid penalties and legal consequences.
Why is it important to conduct a Stock Audit?
Every business organisation at least needs to conduct a stock audit once a year to update and ensure that the physical stock count and the computed stock in the books match.
What are the key objectives of conducting a stock audit?
The key objectives of conducting a stock audit are to ensure accurate stock count, update stock records, and identify discrepancies between physical inventory and stock register.
What is the difference between an internal and external audit?
An internal audit is conducted by employees or management within the organization to evaluate internal controls and operational effectiveness, while an external audit is performed by independent professionals to provide an objective opinion on financial statements and other compliance.
What is the scope of an audit?
The scope of an audit includes examining financial records, assessing internal controls, verifying compliance with laws and regulations, and providing assurance on the accuracy and reliability of information.
What is the difference between an audit and a review engagement?
An audit provides a high level of assurance with extensive testing, while a review engagement offers limited assurance with analytical procedures and inquiries, but no detailed examination of evidence.
What is the significance of due diligence in financial transactions?
Due diligence is significant in financial transactions as it involves a comprehensive examination and analysis of financial information to verify its accuracy, assess potential risks, and make informed decisions, ensuring transparency and minimizing unforeseen issues.
How does a stock audit help in maintaining accurate inventory records?
A stock audit helps in maintaining accurate inventory records by conducting a physical verification of stock, identifying discrepancies between actual physical inventory and stock register, and ensuring proper reconciliation, leading to improved inventory management and control.
Why is an audit important?
Audits are important for several reasons:
- Financial Reporting Integrity: Audits help ensure the accuracy and reliability of financial statements, providing stakeholders with confidence in the organization’s financial information.
- Compliance: Audits verify the organization’s compliance with relevant laws, regulations, and industry-specific standards, reducing the risk of legal and regulatory non-compliance.
- Risk Identification: Audits identify potential risks and control deficiencies within an organization, enabling management to take corrective actions and strengthen internal controls.
- Fraud Detection: Audits help detect and prevent fraudulent activities, including misappropriation of assets, financial statement fraud, or unethical practices.
- Governance and Transparency: Audits contribute to improving corporate governance by evaluating the effectiveness of internal controls, risk management processes, and board oversight.
What are the different types of audits?
Several types of audits can be conducted, including:
- Financial Statement Audit: This type of audit focuses on examining the financial statements to express an opinion on their accuracy and compliance with accounting standards.
- Internal Audit: Internal audits are conducted by employees or an internal audit department within an organization. They assess internal controls, risk management processes, and operational efficiency.
- External Audit: External audits are conducted by independent auditors who are not employees of the organization. They provide an unbiased assessment of the financial statements and compliance with regulations.
- Compliance Audit: Compliance audits assess an organization’s adherence to specific laws, regulations, contractual obligations, or internal policies.
- Operational Audit: Operational audits evaluate the efficiency and effectiveness of an organization’s operations, processes, and procedures to identify areas for improvement.