Audit and Assurance Services
Chartered Accountants (CAs) in India play a vital role in delivering audit and assurance services that uphold financial integrity and trust. These services involve the independent examination of financial records and statements to ensure accuracy and compliance. Established in 1949, the Institute of Chartered Accountants of India (ICAI) regulates the profession, making audit and assurance indispensable in India's growing business ecosystem.
Statutory Audits: Ensuring Compliance
Legal Mandate
Indian laws like the Companies Act and Income Tax Act require statutory audits, ensuring accountability.
Independent Verification
Auditors conduct thorough checks of accounting records to validate accuracy and adherence to standards.
Section 143 of the Companies Act lays out the auditor's powers and responsibilities for compliance audits.
Regulatory Example
Internal Audits: Strengthening Governance
Risk Assessment
Governance
Case Focus
Internal audits identify potential risks and evaluate the effectiveness of control systems.
They provide recommendations to improve processes and strengthen corporate governance frameworks.
PSU Banks, post-NPA crisis, enhanced internal audits as per RBI guidelines to manage financial risks better.
Tax Audits: Navigating the Tax Landscape
Compliance Reporting
Tax audits under the Income Tax Act confirm adherence to tax laws and accurate reporting of income.
Planning Opportunities
Auditors identify tax-saving possibilities while maintaining full regulatory compliance.
Legal Reference
Section 44AB mandates tax audits based on turnover thresholds, ensuring transparency in taxation.
Assurance Services: Beyond Traditional Audits
Review Engagements
Less extensive than audits, providing limited assurance on financial info accuracy.
Agreed-Upon Procedures
Customized procedures to evaluate specific financial or non-financial data
Certification Services
Certifying compliance, such as CSR expenditure as required by the Companies Act, 2013.