Audit and Assurance

We understand the level of reliance placed by stakeholders, including investors, tax authorities and vendors, on the assurance provided by Chartered Accountants. Hence, our assurance function stands on the principles of a high level of integrity and due diligence. Our Assurance services comprise of:

Statutory Audit:

With the Companies Act, 2013, and the introduction of Companies’ Audit and Reporting Order (CARO), 2020; the role of statutory auditors has expanded widely. They no longer confine themselves to only financial numbers, but need to review the complete business processes before forming an opinion on the truthfulness and fairness of financial statements. Hence, at Yugal Goyal and Associates, our audit methodology follows a process comprising of-

  • Understanding client’s business;
  • Understanding the business environment;
  • Understanding the accounting policies followed;
  • Identifying laws and regulations applicable to the client’s business;
  • Reviewing the business process and flow of information;
  • Identifying controls and assessing the risk of material misstatement;
  • Test check of controls and transactions; and
  • Forming an opinion on the true and fair view of the financial statements;

Tax Audit:

The requirement of Tax Audit was introduced by the Finance Act, 1984, by inserting a new Section ‘44AB’ under the Income Tax Act, 1961. Tax audit has been introduced to curb evasion of tax by ensuring that books of accounts are correctly maintained and information such as tax depreciation and disallowance of expenses.

While conducting tax audits, our aim has always been not only to ensure the correctness of reporting as per the provisions of the Income Tax Act, 1961, but also to assist the assessee in correctly computing its tax burden and therefore mitigating the risk of any ‘financial-shock’ at the time of assessment.

Internal Audit:

Internal Audit is an independent evaluation of the effectiveness and efficiency of the processes existing in an organization to provide assurance over the controls in place and add value to improve the organization’s operations. It helps an organization accomplish its objectives by bringing a systematic, disciplined approach to evaluate and improve the effectiveness of risk management, control, and governance processes.

Companies Act, 2013 mandates the requirement to have a robust internal audit system in place for companies meeting a certain set of criteria. However, with changing times and business dynamics, an internal audit system is also been adopted by managers and business owners who need insight into overall risks and controls existing in their business, to improve their productivity and profitability.

At Yugal Goyal And Associates, we follow a risk-based approach to Internal Audit. This involves the identification of key risks associated with the business process and controls in place for mitigation of such risks. Along with evaluating the effectiveness and efficiency of such controls, our internal audit function also involves dwelling into the causes of control failures and recommending steps for the overall improvement of processes.

Compliance Audit:

Compliance audit is an assessment as to whether the provisions of the applicable laws, rules, and regulations made there under various orders and instructions issued by the competent authority are being complied with. This audit by its very nature promotes accountability, good governance, and transparency as it is concerned with reporting deviations, identifying weaknesses, and assessing propriety.

Stock Audit:

The stock audit verifies and evaluates a company’s physical inventory or stock to ensure accuracy and reliability. It involves counting and validating the quantity of goods on hand, comparing it with the records, and identifying any discrepancies. The purpose of a stock audit is to assess the overall stock management system, identify potential risks like pilferage or misappropriation, and ensure compliance with regulations. A stock audit report summarizes the findings, highlighting any discrepancies, potential areas for improvement, and recommendations to enhance inventory control and minimize losses. It serves as a valuable tool for management to make informed decisions regarding stock management and optimize operational efficiency.

Audit of Fixed Assets:

A fixed asset audit is the process of cross-checking items to make sure they are still within the business’s possession. It also evaluates all of the items’ monetary value. Fixed assets typically make up the largest number on the balance sheet, making them your most important investments.

For this reason, conducting such an audit of these items at least once a year to keep your asset register up-to-date and accurate. Audits should be done on these noncurrent assets that are expected to be used by the business for a year or longer.

Certifications:

Bankers, revenue authorities, tender committees and vendors often rely on the certification of a Chartered Accountant to verify certain facts and information. Certification by a Chartered Accountant has also been mandatory by several laws in various circumstances. A few instances where a business requires a Certificate by Chartered Accountant are as follows:

  • Remittance of payment outside India;
  • Turnover certificate by tender committees;
  • Certification while applying for credit limits to banks;
  • Certification of facts during tax assessment proceedings;
  • Stock Certificates;
  • GST Compliance Certificate;
  • Certificate of reporting of Income, in case of non-deduction of tax at source.;
  • Net Worth Certificate.

Certification work is handled by respective teams at Yugal Goyal And Associates, based on the nature of the certificate required. All the certificates issued by us carry a ‘Unique Document Identification Number’ (UDIN) which can be verified online, in order to ensure the authenticity of the certificates issued.

 
     
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