Audit is the cornerstone of strong governance in any organization. It plays a critical role in evaluating operational effectiveness and efficiency, while also enhancing internal controls and strengthening investor confidence.

With a balanced blend of technical expertise and industry experience, our team delivers audit and assurance services tailored to the unique needs of each client, helping them stay compliant, transparent, and strategically prepared.

Our Assurance Services Include:

• Statutory Audits of large corporations, public sector undertakings, and banks

• Tax Audits in compliance with regulatory requirements

• Transfer Pricing Audits to ensure arm’s-length pricing and documentation

• Internal Audits to evaluate risk management and control frameworks

• Investigation Audits for forensic analysis and fraud detection

• Audit and Review of Financial Statements under Local GAAP, US GAAP, and IFRS

• SOX Attestation in accordance with Sarbanes-Oxley requirements

• Agreed-Upon Procedures for specific, client-defined objectives

• Certification Services for various statutory and regulatory requirements

• Financial Reporting Advisory Services for improved reporting accuracy and transparency

• Audits of Trusts, Co-operative Societies, and NGOs

Statutory Audit

In India, statutory audits are audits mandated by law to ensure the accuracy and fairness of financial statements, primarily for companies, banks, and other regulated entities. These are governed by laws such as the Companies Act, 2013, Income Tax Act, and regulations by RBI, SEBI, IRDAI, etc.

Here are the main types of statutory audits in India: 

✅ 1. Company Statutory Audit

• Mandated by: Companies Act, 2013 (Section 139)

• Applicable to: All companies (public and private) registered under the Act

• Conducted by: Chartered Accountants (CAs) appointed as statutory auditors

• Purpose: To examine the company's books and issue an audit report to shareholders

💼 2. Tax Audit

• Mandated by: Section 44AB of the Income Tax Act, 1961

• Applicable to: Businesses with turnover > ₹1 crore (or ₹10 crore if digital transactions ≥ 95%), and professionals with receipts > ₹50 lakh

• Conducted by: Chartered Accountants

• Purpose: To verify income, expenses, deductions, and compliance with tax laws

• Outcome: Filing of Form 3CA/3CB and 3CD

🏦 3. Bank Audit

• Mandated by: RBI Guidelines under the Banking Regulation Act, 1949

• Types:

  • Statutory Central Audit (SCA): For larger banks; covers core financials

  • Branch Audit: For large branches; ensures accuracy at branch level

• Conducted by: RBI-empaneled CAs

• Purpose: To ensure compliance with banking laws and RBI guidelines

🏢 4. Insurance Audit

• Mandated by: Insurance Act, 1938 and IRDAI regulations

• Applicable to: All insurance companies

• Purpose: To audit financial statements and compliance with solvency and reserve norms

• Conducted by: Chartered Accountants approved by IRDAI

📈 5. Cooperative Society Audit

• Mandated by: State Cooperative Societies Acts or Multi-State Cooperative Societies Act, 2002

• Conducted by: CA or auditors empaneled with Registrar of Cooperative Societies

• Purpose: To audit accounts of cooperative banks or societies

💹 6. Stock Exchange / SEBI Audit

• Mandated by: SEBI and Stock Exchange regulations

• Applicable to: Listed companies, brokers, portfolio managers, mutual funds

• Types:

  • Internal/statutory audits for brokers

  • Half-yearly internal audits for mutual funds

• Purpose: Compliance with SEBI regulations

⚖️ 7. GST Audit (Now withdrawn but still relevant historically)

• Mandated by: GST Act (Section 35(5)) — till FY 2019–20

• Applicable to: Taxpayers with turnover > ₹2 crore

• Conducted by: CAs or Cost Accountants

• Status: Removed from FY 2020–21 onward, replaced by self-certification of reconciliation statement

🧾 8. Trust Audit

• Mandated by: State Public Trust Acts and Income Tax Act

• Applicable to: Charitable trusts, especially if claiming tax exemption

• Purpose: Ensure proper use of donations and income

Tax Audit

In India, Tax Audit generally refers to the audit conducted under Section 44AB of the Income Tax Act, 1961, but there are multiple types and categories of tax-related audits based on the taxpayer’s nature, income level, and business structure.

Here are the main types of tax audits in India:

✅ 1. Tax Audit under Section 44AB (Main Type)

This is the primary tax audit prescribed under the Income Tax Act.

📌 Applicable When: Category

       Criteria: Business Turnover > ₹1 crore (₹10 crore if ≥95% digital receipts/payments)

                      Profession Gross receipts > ₹50 lakh

🧮 2. Presumptive Taxation Scheme Audit

          Though not a separate "audit type," certain presumptive income schemes can require tax audit

          if conditions are not met or if the scheme is not followed properly.

          Section           Description                                                       Audit Required When?

           44AD              Small businesses (turnover ≤ ₹2 crore            If income < 8% (or 6% for digital), and total income > basic exemption limit

           44ADA           Professionals (receipts ≤ ₹50 lakh)                  If income < 50% of receipts and total income > exemption limit

           44AE              Goods transport businesses (≤10 vehicles)   If opting out or conditions not followed

🏦 3. Transfer Pricing Audit (Section 92E)

📌 Applicable To: International or specified domestic transactions between associated enterprises (AEs)

🔍 Purpose: Ensures arms-length pricing in cross-border or related-party transactions

Note: This is separate from the Section 44AB audit but is also a mandatory "tax audit" in relevant cases.a

🏢 4. GST Audit (Historical)

Though not under the Income Tax Act, it was a statutory tax audit under GST laws for earlier years.

📌 Status: Mandatory GST audit (by CA/CMA) has been withdrawn from FY 2020–21

Internal Audit

Internal audits can be classified into different types based on their focus areas or objectives. Here are the main types of internal audits commonly conducted within organizations:

🔍 1. Financial Audit

• Purpose: Reviews the accuracy and integrity of financial records and reporting.

• Focus: General ledger, accounts payable/receivable, payroll, and financial controls.

• Example: Ensuring that all financial transactions are properly recorded and authorized.

🔄 2. Operational Audit

• Purpose: Evaluates the efficiency and effectiveness of business operations.

• Focus: Processes, workflows, performance metrics, and resource utilization.

• Example: Auditing the supply chain process to reduce delays and costs.

🛡️ 3. Compliance Audit

• Purpose: Assesses compliance with internal policies, laws, and regulations.

• Focus: Industry-specific rules, legal requirements, and contractual obligations.

• Example: Verifying if HR policies comply with labor laws.

⚠️ 4. Risk-Based Audit

• Purpose: Focuses on areas of greatest risk to the organization.

• Focus: Risk management practices and controls related to strategic, financial, operational, or reputational risks.

• Example: Auditing high-risk vendor relationships or major projects.

🖥️ 5. Information Systems (IT) Audit

• Purpose: Reviews controls related to information systems and cybersecurity.

• Focus: Data integrity, system access, backups, disaster recovery, IT governance.

• Example: Checking access logs and permissions for a critical financial software system.

🚨 6. Fraud Audit (or Investigative Audit)

• Purpose: Detects and investigates suspected fraud or unethical behavior.

• Focus: Anomalies in financial records, policy violations, whistleblower claims.

• Example: Investigating suspicious vendor payments flagged by the finance team.

📈 7. Performance Audit

• Purpose: Evaluates whether resources are used effectively and economically.

• Focus: Cost-effectiveness, quality of service delivery, and productivity.

• Example: Reviewing a department’s budget use versus its outcomes.

🌐 8. Environmental, Social & Governance (ESG) Audit

• Purpose: Assesses compliance with ESG goals and sustainability initiatives.

• Focus: Environmental impact, labor practices, governance structures.

• Example: Auditing energy use or diversity and inclusion reporting.

🗂️ 9. Follow-Up Audit

• Purpose: Determines whether corrective actions from previous audits have been implemented.

• Focus: Specific findings and recommendations from prior audits.

• Example: Rechecking procurement processes after issues were identified.

Forensic Audit

Forensic audits around the world are specialized audits conducted to detect, investigate, and prevent fraud, financial misconduct, or criminal activity. They are used by corporations, governments, regulators, and legal systems.

Here are the main types of forensic audits worldwide, categorized by their focus or purpose:

🗂️ Summary Table

      Type of Forensic Audit                     Focus Area                                                        Common Users

      Financial Statement Fraud                 Accounting manipulation                                  Regulators, investors

      Asset Misappropriation                       Theft of cash, inventory, resources                    Companies, nonprofits

      Corruption and Bribery                       Illegal payments, unethical deals                      Governments, watchdogs

      Tax Fraud                                                Evasion, false returns                                             Tax departments

      Bankruptcy Forensics                         Insolvency-related fraud                                       Creditors, courts

      Money Laundering                              Tracing illicit funds                                                  Banks, financial regulators

      Cyber Forensics                                    Digital fraud and cybercrimes                             IT firms, cybercrime units

      Insurance Fraud                                   False insurance claims                                           Insurance companies

      M&A Forensics (Due Diligence)       Hidden fraud in target companies                     Acquiring firms, investors

      Procurement Fraud                            Contract irregularities                                            Public sector, NGOs

🌍 Major Types of Forensic Audits

1. Financial Statement Fraud Audit

• Focus: Detect manipulation or falsification of financial statements

• Examples:

  • Overstating revenue

  • Hiding liabilities

• Common in: Public companies, especially those under stock exchange scrutiny

2. Asset Misappropriation Audit

• Focus: Investigate theft or misuse of an organization’s assets

• Examples:

  • Embezzlement

  • Skimming cash

  • Misuse of company credit cards

• Common in: SMEs, nonprofits, and large corporations

3. Corruption and Bribery Audit

• Focus: Identify illegal payments or kickbacks to gain an unfair advantage

• Examples:

  • Bribing government officials

  • Fraudulent vendor relationships

• Common in: Government contracts, international trade, construction

4. Tax Fraud Audit

• Focus: Investigate intentional misreporting of taxes or evasion

• Examples:

  • Underreporting income

  • Fake deductions or offshore accounts

• Handled by: Tax authorities like IRS (USA), HMRC (UK), or CBDT (India)

5. Bankruptcy or Insolvency Forensic Audit

• Focus: Examine causes of bankruptcy or suspected fraudulent transfers before insolvency

• Used for:

  • Identifying preferential payments

  • Proving director misconduct

• Common in: Corporate bankruptcies and restructuring

6. Money Laundering and Financial Crime Audit

• Focus: Trace illegal funds and suspicious transactions through the financial system

• Tools used: AML software, transaction analysis

• Used by: Financial intelligence units (e.g., FINCEN, FIU-India)

7. Cyber Forensic Audit (Digital Forensics)

• Focus: Investigate financial crimes using digital evidence

• Examples:

  • Hacking financial records

  • Email scams, ransomware attacks

• Used by: Cybercrime units, tech-driven businesses

8. Insurance Fraud Audit

• Focus: Investigate fraudulent insurance claims

• Examples:

  • Fake accidents

  • Inflated health claims

• Common in: Health, auto, and life insurance sectors

9. Due Diligence Forensic Audit (M&A Investigations)

• Focus: Uncover hidden liabilities or fraud in mergers & acquisitions

• Purpose: Protect buyer's interest during corporate deals

10. Contract and Procurement Fraud Audit

• Focus: Detect collusion, bid rigging, and kickbacks in procurement

• Examples:

  • Inflated contract pricing

  • Phantom vendors

• Common in: Government projects, NGOs, constructiona

Certification Services

In India, Chartered Accountants (CAs) are authorized to issue various certifications required under different laws and regulations, primarily governed by the Institute of Chartered Accountants of India (ICAI). These certifications are essential for businesses, individuals, and organizations for regulatory compliance, taxation, financial reporting, fundraising, and statutory audits.

Below is a categorized list of the types of Chartered Accountant certifications in India:

🧾 1. Tax-Related Certifications

         Certification                                                             Purpose

         Tax Audit Report (Form 3CD)                                  Mandatory under Section 44AB of the Income Tax Act

         Transfer Pricing Certificate (Form 3CEB)              Required under Section 92E for international/domestic related-party transactions

         Certification for TDS Compliance                           Verifying correct deduction and deposit of TDS

         Certificate of Computation of Book Profit (MAT) For companies paying Minimum Alternate Tax under Section 115JB

         Certification of Income for Visa or Remittance    Required under Section 195 for foreign remittances (Form 15CB)

🏛️ 2. Statutory & Regulatory Certifications

       Certification                                                              Purpose

       Statutory Audit Report                                                Required under the Companies Act for all companies

       Certification of Financial Statements                      Attesting that accounts present a true and fair view

       Net Worth Certificate                                                   For loans, tenders, immigration, or franchise applications

       Turnover Certificate                                                      For bidding in government tenders or bank loan applications

       Working Capital Certificate                                        Often required by banks for credit limit approvals

🏢 3. Company Law Certifications

          Certification                                                                  Purpose

          Certification under Section 92 (Annual Return)        Filing of MGT-7 (Annual Return) by companies

          Certification under Section 137 (Financials)                Filing AOC-4 (Financial Statements) with ROC

          Share Valuation Certificate                                              For issuance of shares, mergers, or startup funding (under Companies Act and FEMA)

          Certification of Internal Controls & Governance         For corporate governance compliance and audits

💱 4. FEMA / RBI Related Certifications

          Certification                                                                   Purpose

          Foreign Remittance Certificate (Form 15CB)              Required for outward remittance of foreign exchange

          Certification of ECB Utilization                                       For use of External Commercial Borrowings as per RBI norms

          FIRC / FDI Reporting Certifications                               For inward remittances and compliance with RBI guidelines

🏥 5. Certifications for NGOs and Trusts

          Certification                                                                  Purpose

          Audit Report under Section 12A/80G                            For charitable trusts and NGOs claiming tax exemption

          Utilization Certificate                                                         For grants received from government or donors

          Corpus Fund Certification                                                To confirm the nature and use of funds received

📈 6. Project Finance & Bank Certifications

          Certification                                                                   Purpose

           Projected Financials Certificate                                      For loan proposals or investment evaluations

           Fund Flow / Cash Flow Statement Certification         Used by banks to assess liquidity and viability

           Certificate of End Use of Funds                                       To confirm that loan funds were used for approved purposes

           DSCR Certificate (Debt Service Coverage Ratio)         For assessing creditworthiness in banking proposals

📋 7. Miscellaneous Certifications

         Certification                                                                         Purpose

          CA Certificate for Startup Valuation                                     Required by startups for investor reporting and DPIIT recognition

          Capital Gains Calculation Certificate                                   For sale of property or shares

          Certification for Merger / Demerger / Amalgamation    Used in schemes submitted to NCLT or ROC

          Inventory Valuation Certificate                                              For banks, insurance claims, or legal proceedings