An audit is a systematic examination of an organization’s financial records, processes, or operations to ensure accuracy, compliance with regulations, and adherence to established standards. It involves reviewing and assessing various aspects of an organization's activities to identify errors, inefficiencies, or areas of non-compliance, ultimately aiming to improve performance and maintain accountability.
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-
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.
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.
Statutory bank audits are a crucial component of financial oversight for banks and other financial institutions. These audits are mandated by law and are designed to ensure that banks comply with regulatory requirements, maintain accurate financial records, and operate in a manner that is both transparent and accountable.
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.
Cost control audits are evaluations designed to examine and assess an organization's spending practices and cost management strategies. The goal is to identify inefficiencies, ensure adherence to budgets, and recommend improvements to optimize financial performance.
Due diligence is a comprehensive process of investigation and evaluation undertaken before entering into a business transaction or partnership. It involves systematically reviewing and verifying critical information to ensure that all aspects of the deal are thoroughly understood and assessed.
Concurrent audits of banks involve ongoing, real-time reviews of a bank's operations, transactions, and controls as they occur. The purpose is to ensure that all banking activities are in compliance with regulatory requirements, internal policies, and industry standards
