Audit and Assurance

Prescribed by:

Companies Act, 2013 mandates all the companies satisfying specific conditions to have an Internal Audit mechanism in relation to its size of operations

Scope:

The scope of the risk-based audit is at the discretion of the management and includes, but is not limited to the evaluation of the internal control system placed in the business

A special audit focuses only on a specific area of an organization’s activities. This type of audit may be initiated by a government agency or a Bank or an Investor or by the entity itself to estimate the efficiency level. Some examples of special audit are:

Systems audit is an approach to evaluate and improve the effectiveness of a system. Generally, audits are carried out in order to verify that the individual elements within the system are effective, efficient and suitable for achieving the stated objectives.

Stock audit is a statutory process which every business institution needs to perform at least once in a financial year. As far the stock audit process is concerned, the process mainly involves the counting of physical stock presenting the specified premises and verifying the same with computed stock maintained by the company. The reason and purpose behind executing this is to correct the discrepancies present in the book stock when compared to physical stock by passing necessary adjustment entries.

Agreed upon procedures are the procedures that are agreed between an entity and a third party to produce factual findings about financial information or operational processes.
Such procedures may include:

Generally, CA certification is required for various purposes under different rules and regulations. Certificates are needed by businesses to claim the privileges available under the law, financial arrangement with the financial institution, benefit and deductions to be claimed under statue and periodical compliance of relevant rules and regulations.