Statutory Audits as per Companies Act 2013: All companies registered in India are required to get their Financial Statements audited by Chartered Accountants under the Companies Act, 2013. These audits are undertaken in accordance with the Accounting Standards, Ind-AS and guidelines issued from time to time by the Institute of Chartered Accountants of India.
Tax Audit as per Section 44AB of the Income Tax Act, 1961: Persons having sales, turnover or gross receipts of business over Rs. 1 crore in the financial year. This provision is not applicable to the person, who opts for presumptive taxation scheme under section 44AD and his total sales or turnover does not exceed Rs. 2 crores. A person carrying on profession, if his gross receipts in profession for the year exceed Rs. 50 lakhs is also required to have their Accounts audited by Chartered Accountants under the Income Tax Act, 1961.
NOTE: The threshold limit of Rs 1 crore for Tax Audit is increased to Rs 5 crore with effect from AY 2021-22 (FY 2020-21) if the taxpayer’s cash receipts are limited to 5% of the gross receipts or turnover, and if the taxpayer’s cash payments are limited to 5% of the aggregate payments.
Internal Audit: An internal audit is more of a control procedure. It serves as an opportunity to provide an updated insight into ones business, an insight that could identify potential threats or opportunities that can factor into plans and recommendations for better management of business.
Compilation Services: Financial statement compilation is a service to assist the management of a business in presenting its financial statements. This presentation involves no activities to obtain any assurance that there are no material modifications needed for the financial statements to be in conformity with the applicable accounting framework. Compilation Services are conducted as per Standard issued by the ICAI.
Interim Financial Reporting: Interim financial statements are financial statements that cover a period of less than one year. They are used to convey information about the performance of the issuing entity prior to the end of the normal reporting year to be closely followed by stakeholders.
Certification: Certificates are required to be issued for various purposes under different rules & regulations such as Certification of outstanding statutory liabilities, Net worth Certificates needed for the purpose of Bank finances, furnishing of Bank guarantee and issuance of Certificate for grant of Visa by Embassy, Utilization certificates of various grants being discharge by Govt. of India to NGO’s, Statutory Bodies, Autonomous Bodies, and charitable organizations, Certificates for claiming various deductions & exemption under various rules & regulations, Certification under the Indirect Taxes, Certification for Transfer Pricing etc.