Chartered accountant firms in India offer a variety of audit services to meet the needs of their clients and comply with regulatory requirements. Some of the key audit services provided by these firms include:
- Statutory Audit: This is the primary audit required by law for certain entities, such as companies, under the Companies Act, 2013. Chartered accountants conduct statutory audits to verify the accuracy and fairness of financial statements and ensure compliance with applicable accounting standards and regulatory requirements.
- Tax Audit: Tax audits are conducted under the provisions of the Income Tax Act, 1961, for businesses and individuals whose turnover or income exceeds specified thresholds. Chartered accountants review financial records and assess tax liabilities to ensure compliance with tax laws and regulations.
- Internal Audit: Internal audits are conducted by chartered accountants within an organization to evaluate internal controls, risk management processes, and operational efficiency. The objective is to identify areas for improvement and ensure compliance with policies and procedures.
- Compliance Audit: Compliance audits are performed to assess whether an organization is adhering to relevant laws, regulations, and internal policies. Chartered accountants review documentation and procedures to verify compliance and recommend corrective actions if necessary.
- Special Purpose Audit: Chartered accountant firms may conduct special purpose audits tailored to specific requirements, such as forensic audits to investigate financial irregularities, due diligence audits for mergers and acquisitions, or agreed-upon procedures audits to address specific client concerns.
- Bank Audit: Chartered accountants are appointed by banks and financial institutions to conduct audits of their borrowers’ financial statements as part of the lending process. These audits provide assurance to lenders regarding the financial health and repayment capacity of borrowers.
- Management Audit: Management audits focus on evaluating the effectiveness of an organization’s management practices, decision-making processes, and strategic planning. Chartered accountants assess management performance and provide recommendations for enhancing organizational efficiency and effectiveness.
- Investigative Audit: Investigative audits are conducted to uncover fraud, embezzlement, or other financial irregularities within an organization. Chartered accountants use forensic accounting techniques to gather evidence, analyze financial transactions, and identify fraudulent activities.
These are some of the audit services commonly provided by chartered accountant firms in India. The specific services offered may vary depending on the firm’s expertise, industry specialization, and client requirements.