CA Services

Audit & Assurance

An independent appraisal function established within an organisation to examine and evaluate its activities — as a service to the organisation, not an exam it has to pass.

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Overview

What this covers

We have wide experience conducting audits for large and medium-sized business entities, and prepare financial statements both to accounting standards and in compliance with generally accepted accounting principles.

The emphasis throughout is on internal control strong enough to minimise the risk of accidental or deliberate error and omission — safeguarding of assets, adequate division of authority over key control areas, and compliance with internal operating policy.

In detail

How we work on it

Internal audit

Conducted primarily to give management a clear, comprehensive analysis of the organisation's functional efficiency, and to suggest where it could be improved. Our internal audit services are designed around individual client needs rather than a fixed programme.

Critical evaluation of internal controls, and where to strengthen them
Review of existing processes, policies and practices against best practice, including benchmarking
Review of the management framework and its effectiveness
Identification of areas for cost reduction, revenue optimisation and operational efficiency — followed by help implementing them
Confirmation of compliance with regulatory provisions and operational manuals
Assistance in meeting corporate governance requirements
Complete outsourcing of the internal audit function, or co-sourcing alongside your existing team

Statutory audit

Auditing the books of account against statutory requirements, to assure a true and fair view under the particular law the audit is initiated under. Every account is examined against the provisions and regulations that govern it.

Our statutory audit team are experienced professionals working to the applicable accounting and auditing standards.

Management audit

A comprehensive, objective assessment of a company's effectiveness, efficiency, productivity and readiness to respond to change — and of management competence and potential, in a form that can be compared reliably against other companies.

Merger and restructuring processes, and how positions should be filled
Benchmarking and due diligence analysis to establish position against competitors and best practice
Development and succession planning
Review of business processes, policies and practices
Evaluation of internal controls and the management framework
Operational audits through scrutiny of business operations, activities and functions

Due diligence audit

A careful investigation into the complete financial picture of a company, generally before a purchase, merger or other major decision that could affect the finances of one or more businesses.

Due diligence is the corporate equivalent of checking references before hiring. A company's strengths tend to be stressed and its weaknesses downplayed; the work focuses on information outside what is freely presented.

Confirmation of net assets — both title and value — and the accuracy of accounting
Historic and prospective financial analysis, and assessment of financial risk
Checking the accuracy of tax calculations and evaluating tax risk
Review of corporate structure, title to assets, intellectual property rights and commercial liabilities
Validation of balance sheet and off-balance-sheet items
Review of accounts receivable, revenue trends and quality of earnings
Assessment of accounting policies, the financial close process and the internal audit function
Assessment of systems, IT infrastructure, data and network security
Review of real estate, employee contracts and third-party providers

Tax audit

Section 44AB, introduced by the Finance Act 1984 and in effect from assessment year 1985-86, brought in the tax audit requirement with the aim of curbing tax evasion and avoidance.

In a tax audit the auditor expresses an opinion on the liability and legality of the factual details the assessee has given to the tax authorities. The appointed Chartered Accountant provides the report in Form 3CD, and relevant facts from it must be included when the income tax return is filed.

Reducing tax burden by reviewing disallowances and deductions under the Income Tax Act 1961
Careful attention to the figures used to compute assessable income
Reports prepared to auditing and accounting standards and to statutory requirements

Who it's for

You'll get the most out of this if…

Companies with a statutory audit obligation
Businesses falling under section 44AB
Acquirers and investors running due diligence before a transaction
Boards wanting an independent view of their control environment
Organisations outsourcing or co-sourcing internal audit

Important information

The content on this website is for general information only and does not constitute investment advice or a recommendation to buy or sell any product. Product suitability depends on your individual circumstances. Please speak with an advisor before investing.

Also from the practice

The rest of what we do

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info@sarvamassociates.comBhandup (West), Mumbai