Our firm provides Audit Services in the field of Companies Act, LLP Act and Income Tax Act. Statutory Audit as well as tax audit services are conducted in accordance with the Accounting and Auditing standards generally accepted in India. The Firm has regular conferences, seminars and workshops to train audit staff. The procedure is to first understand the business of the client, prepare a master file, go through authorisations and then provide audit services both electronic and offline.
Procedure needs to be understood and then the actual process needs to be observed to see if the standards are being followed. Specific requirements of particular Laws are kept in mind while conducting the audit.
For example, in a manufacturing company, the emphasis, while providing audit services for stock is audit procedures from the acquisition of raw material to the dispatch of Finished Goods. Raw material acquisition may require obtaining testing reports, goods received note, Stock registers etc. and then confirming with the actual books of accounts.
However, in a service company with large number of employees, one of the areas where audit can play an important role is examining expenses claimed by the employees for travelling, business trips etc.
In a software company or construction company, the challenge in or an emphasis in audit is revenue recognition especially when the sales projects are multi-stage and involve milestones and client sign off. Chances of revenue being recognised earlier than due are high and Audit should avoid them.