May 18, 2022
Definition. An audit is the thorough checking of books of accounts by an auditor, mostly a qualified chartered accountant. CA also conducts physical checking of bills and vouchers to ensure that all departments follow a robust documented accounting system. The primary purpose of Auditing is to verify the accuracy of book s of accounts of any organisation.
Description: Audit can be done internally by employees or heads of a particular department and externally by an outside firm or an independent auditor. The idea is to check and verify the accounts by an independent authority to ensure that all books of accounts are fairly done. That accountant has done No misrepresentation or fraud.
All the public listed firms have to get their accounts audited by an independent auditor before declaring their results for any quarter.
There are designated bodies in each country that conducts audit. In India, ICAI is the body whose members conducts audits here. CA's are entitled and equipped with all the know-how of performing an successful audit here. Similarly, in USA they have CPA i.e. Certified Public Accountant who are their CA kind of professionals. Likewise every country has his own super-brains who are entitled for these kinds of works
Audit is an extensive procedure that is completed in various step, viz.
a. To define the scope of work.
b. To plan the audit, details of deadlines, departments, etc
c. To compile the information like the accounts, key financial statements, etc.
d. The auditor’s report
Assurance services are an independent review of specific deals, documents or transactions that can prove their reliability, correctness, and validity. Team Financy Anzalist provides its clients with a clear picture of the financial risks and steps to prepare themselves. The process involves an independent examination to help the client make an informed decision. The focus of our assurance services is to help our clients achieve their desired business goals with transactions that support and boost their business.
We, Team Financy Anzalist, has a deep understanding of your business. With this approach as an audit firm, it becomes smooth and easy for the industry you operate in to gets acquainted with the practices going on in the industry. The Cohesity enables us to design an effective audit plan. Our procedure is designed to accommodate all the accounting guidelines and principles issued by the regulatory board regularly.
IFRS has become the global accounting reporting standard. However, many companies seem unaware or unprepared for the complexities this change represents. Business transformation to IFRS affects almost all the business functions of an enterprise, such as Organisation structure, Legal contracts, accounting and finance, taxation, corporate responsibilities, and executive compensation. Conversion to IFRS is a big challenge for companies. At Team Financy Anzalist, we aim to add value to this conversion process and help our clients realise many of the opportunities this change presents. We assist in developing plans for implementing the necessary changes By assessing the likely impact of this conversion across all the business functions
Every organisation today faces a very complex compliance environment irrespective of its size. Any non-compliance will lead to penalties, fines and, more importantly, risk of harm to its reputation. In this scenario, a well experienced and competent compliance management team comes into play.
We at Team Financy Anzalist work with our clients to understand the business and industry they operate and form an integrated strategy to ensure that all the compliance requirements get fulfilled in due time. Our efficient working allows the organisation and management to focus on other essential areas and not waste time and efforts on complicated compliance.
Audit under GST involves examining records, returns and other documents maintained by a GST registered person. GST Audit ensures the correctness of turnover declared, taxes paid, refund claimed, input tax credit availed and assess other such compliance under GST Act to be checked by an authorised expert.
GST is a trust-based taxation regime wherein a taxpayer must self-assess his tax liability, pay taxes and file returns. Thus, to ensure whether the taxpayer has self-assessed his tax liability correctly, a robust audit mechanism is a must. The government takes various measures for the proper implementation of GST, and audit is one of them.
Tax Audit is verification of a business income or individual taxable income following the Income Tax Act or not. A tax Audit is a declaration of all the computable income or entitled to certain tax deductions or any tax offsets they had claimed in their tax return. Our taxation advisory team assist our clients in filing their tax audit returns in time.
Our Audit procedure has been designed to comply with Income Tax Act 1961.
Risk Advisory is a mechanism to manoeuvre through a challenging course. It helps a business to plan to minimize the risk. It also helps to identify the potential risk and mitigate that risk. It consists of services designed in fulfilling the strategic goals of an organization. It provides ready help to anticipate the risk and meet regulatory compliance requirements. We Financy Anzalist assist our clients on various aspects like controls, calculated-risk, efficient processes, governance and timely compliance requirements. We also support our clients with identifying potential risk and further manage that risk. We also assist them in dealing with the consequences in cases where risk becomes a reality.
At present times, internal Audit is seen and implemented as a critical strategic tool for the company. A well-structured internal audit functions to reduce the challenges for management and audit committee. It serves the purpose for all other stakeholders as well. On the other hand, it adds value to the company in terms of books and records. We Financy Anzalist, as an internal audit firm in India, ensure precisely that for our clients. Internal Audit is a third-party evaluation of an entity's operations to improve performance, develop a strategy to manage the risks, maximise the entity's value, and identify an opportunity for improvement. Management often does Internal Audit as a procedure to clarify the effectiveness of the internal controls in place.
Gone are the days of files and wardrobes. Today every company works in emails, and most of the departments have also gone cent per cent online. An apparent condition Information Technology & I.T.E.S. is the new regular and mandatory part of the operations at any organizations, which makes an I.T. audit a crucial step in maintaining stability in an organization. Assessment of I.T. is an examination of the Information technology infrastructure to assess its effectiveness. Audit performance has its alignment with the objective of the entity. It is crucial to ensure that the I.T. controls are in place and are enough to protect the organization’s assets, data, and information, or if any further improvement is required.
Types of GST Audit
?Types | ?Performed by | ?When Initiated |
---|---|---|
?Turnover based audit | ?Chartered Accountant or Cost Accountant appointed by the taxpayer | ?If the Turnover exceeds 2 crores^ the taxpayer has to get his accounts & records audited |
?Normal audit/ General Audit | Commissioner of CGST/SGST or any Officer authorised by him? | ?On order of Commissioner by giving 15 days prior notice |
?Special Audit | ?A Chartered Accountant or Cost Accountant, nominated by Commissioner | ?On order of Deputy/Assistant Commissioner with prior approval of Commissioner |
Turnover-based Audit under Section 35(5) of CGST Act
Account auditing is mandatory If the annual turnover of a registered taxpayer is more than Rs. 2 crores^ in a financial year. This audit report has to be certified by a Chartered Accountant or Cost Accountant every year.
A financial year covers the 12 months from April of a calendar year to March of the following calendar year.
Aggregate turnover is calculated as follows:
Aggregate turnover = Value of taxable (inter-state and intra-state)supplies + exempt supplies + export supplies of all goods and services
The total turnover calculation must be PAN-based, which means that once the turnover under the PAN is more than Rs. 2 crores^, all business entities registered under GST for that PAN will be liable for GST audit for a financial year.
Items included while calculating turnover:
Items Excluded while calculating turnover:
Qualification of GST Auditor & Eligibility
Only a Chartered Accountant or a Cost Accountant can perform a GST Audit u/s 35.
Points to Note:
Appointment of GST Auditor:
A proprietor, partner or Board of Directors in case of a Company should appoint a GST Auditor at the beginning of the financial year.
Accounts to be to be reviewed by GST Auditor:
Following are important accounts or records for review:
Forms for Annual return and GST Audit:
The Auditor must report any tax liability pending for payment by the taxpayer, identified through the reconciliation exercise and observations made on GST audit. Taxpayers can settle taxes as recommended by the auditor in Form DRC-03.
The finalized GSTR-9C can be certified by the same CA who conducted the GST audit or it can also be certified by any other CA who did not conduct the GST Audit for that particular GSTIN.
The following must be reported and certified by the GST Auditor or the certifier:
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