STATUTORY AUDIT / EXTERNAL AUDIT

Get your FSSAI license without any Hassle with Auriga Accounting ! Get enticing deals, attractive terms, and appealing costs.

STATUTORY AUDIT / EXTERNAL AUDIT Hassle Free.

APPLY NOW..

Why Should I Use Auriga Accounting For STATUTORY AUDIT / EXTERNAL AUDIT?

Auriga Accounting has a team of registration experts who can provide complete guidance to register your STATUTORY AUDIT / EXTERNAL AUDIT.

book appointment

Our team of experts will get in touch with you and collect all necessary documents and details

Resolve all your queries

We fill out and file your application for registration

Complete your registration

Your STATUTORY AUDIT / EXTERNAL AUDIT

Why Should I Use Auriga Accounting For STATUTORY AUDIT / EXTERNAL AUDIT?

Auriga Accounting has a team of registration experts who can provide complete guidance to register your STATUTORY AUDIT / EXTERNAL AUDIT.

book appointment

Our team of experts will get in touch with you and collect all necessary documents and details

Resolve all your queries

We fill out and file your application for registration

Complete your registration

Your STATUTORY AUDIT / EXTERNAL AUDIT

OVERVIEW

External audit, also known as independent audit or statutory audit, refers to the examination and evaluation of an organization’s financial statements, records, and internal controls by an independent party. The purpose of an external audit is to provide an objective assessment of the accuracy, fairness, and compliance of an organization’s financial information with applicable accounting standards, regulations, and laws.

External audits are typically conducted by certified public accountants (CPAs) or audit firms that are independent of the organization being audited. These auditors review financial statements, such as the balance sheet, income statement, and cash flow statement, to ensure they present a true and fair view of the organization’s financial position, performance, and cash flows.

During an external audit, auditors assess the reliability of financial information by examining supporting documents, conducting tests, and verifying transactions. They may also evaluate the effectiveness of internal controls and assess the organization’s compliance with relevant laws and regulations.

The ultimate goal of an external audit is to provide assurance to stakeholders, including shareholders, investors, lenders, and regulatory authorities, that the financial statements are reliable and can be trusted. The audit report issued by the external auditors includes their opinion on the fairness and accuracy of the financial statements and any significant findings or recommendations.

External audits are often required by law for certain types of organizations, such as publicly traded companies, financial institutions, and nonprofit organizations. The audits help enhance transparency, accountability, and confidence in financial reporting and contribute to the overall integrity of the financial system.

Person responsible for conducting External audits

External audits are conducted by independent third-party auditors who are typically certified public accountants (CPAs) or audit firms. These auditors are separate from the organization being audited and have no direct affiliation or financial interest in the company. They provide an objective and unbiased assessment of the organization’s financial statements and internal controls.

Audit firms, such as the Big Four accounting firms (Deloitte, PricewaterhouseCoopers (PwC), Ernst & Young (EY), and KPMG), are commonly engaged to conduct external audits for large corporations and organizations. These firms have extensive experience, resources, and expertise in auditing financial statements and providing assurance services.

However, external audits are not limited to the Big Four firms. There are many other audit firms, both large and small, that perform external audits for a wide range of organizations, including privately held companies, government entities, and nonprofit organizations. These firms are registered and regulated by professional accounting bodies and adhere to auditing standards and guidelines.

The selection of the external auditor is typically made by the organization’s management, with approval from the board of directors or relevant stakeholders. The auditor is chosen based on their qualifications, reputation, independence, and experience in the specific industry or sector of the organization being audited.

Qualification of external auditor

Certified Public Accountant (CPA) or Equivalent: External auditors are often required to hold a CPA designation or an equivalent professional accounting qualification. This qualification demonstrates a strong understanding of accounting principles, financial reporting, auditing standards, and relevant regulations.

Professional Membership: External auditors are usually members of professional accounting bodies or regulatory organizations, such as the American Institute of Certified Public Accountants (AICPA) in the United States, the Institute of Chartered Accountants (ICA) in the United Kingdom, or the Chartered Professional Accountants (CPA) in Canada. These memberships ensure adherence to professional standards and codes of ethics.

Education and Experience: External auditors typically hold a bachelor’s or master’s degree in accounting, finance, or a related field. They also gain practical experience through working in public accounting firms or audit departments of organizations. The level of experience required may vary depending on the complexity and size of the audits they undertake.

Continuing Professional Education: External auditors are required to engage in ongoing professional development to stay updated with changes in accounting standards, auditing practices, and regulations. They are expected to participate in training programs, seminars, and courses to enhance their knowledge and skills.

Independence and Objectivity: External auditors must demonstrate independence and objectivity in their work. They should be free from any conflicts of interest that could compromise their ability to provide an unbiased assessment of the financial statements and internal controls. Independence is crucial to maintain the integrity and credibility of the audit process.

Knowledge of Auditing Standards: External auditors need to be well-versed in auditing standards and guidelines established by professional accounting bodies or regulatory authorities. These standards, such as the International Standards on Auditing (ISA), provide a framework for conducting audits and ensuring the quality and consistency of audit work.

PENALTY

SECTION 447

Definition of Fraud: Section 447 defines fraud as any act, omission, concealment of facts, or abuse of position, committed with an intention to deceive, gain undue advantage, or injure the interests of the company or its shareholders or creditors or any other person, whether directly or indirectly.

Punishment for Fraud: If a person is found guilty of fraud under Section 447, they can be punished with imprisonment for a term not less than six months, which may extend to ten years. In addition to imprisonment, the person may also be liable to pay a fine that is not less than the amount involved in the fraud but may extend to three times the amount of fraud.

SECTION 448

False Statement: Section 448 deals with situations where any person makes a false statement in any return, report, certificate, financial statement, prospectus, or other document filed, submitted, or published under the Companies Act, with knowledge that the statement is false in any material respect.

Punishment: If a person is found guilty of making a false statement under Section 448, they can be punished with imprisonment for a term not exceeding two years and/or with a fine that is not less than the amount involved in the statement but may extend to five times the amount of fraud.

ELIGIBILITY

All Listed Company,
Public Company having Paid-up capital of 50 crores or more, or turnover of 250 crores or more,
Any private company serving as a subsidiary of a public company that falls into the categories mentioned above shall conduct a Secretarial Audit.

DUTIES AND RESPONSIBILITY

Financial Statement Examination: The primary responsibility of an external auditor is to examine the financial statements of an organization. This involves assessing the accuracy, completeness, and fairness of the financial information presented in the statements, including the balance sheet, income statement, and cash flow statement.

Compliance with Accounting Standards: External auditors ensure that the financial statements comply with the relevant accounting standards, such as Generally Accepted Accounting Principles (GAAP) or International Financial Reporting Standards (IFRS). They assess whether the organization has appropriately applied accounting principles and disclosed relevant information.

Internal Control Evaluation: External auditors assess the effectiveness of an organization’s internal controls. They examine the systems and processes in place to safeguard assets, prevent fraud, and ensure the reliability of financial reporting. Auditors identify weaknesses or deficiencies in internal controls and provide recommendations for improvement.

Audit Planning and Risk Assessment: External auditors plan the audit engagement by understanding the organization’s business, identifying risks, and determining the scope of the audit. They assess the risk of material misstatement in the financial statements and develop an audit plan to address those risks.

Audit Procedures and Evidence Gathering: Auditors perform audit procedures to gather evidence and support their opinion on the financial statements. This may involve analyzing documents, conducting tests, verifying transactions, and interviewing personnel. They use sampling techniques to select items for testing, ensuring that the sample is representative of the population.

Communication and Reporting: External auditors communicate with the organization’s management throughout the audit process. They provide regular updates, discuss findings, and seek clarifications. At the conclusion of the audit, auditors issue an audit report that includes their opinion on the fairness of the financial statements and any significant findings or observations.

Independence and Professional Ethics: External auditors maintain independence from the organization being audited to ensure objectivity and integrity in their work. They adhere to professional ethics and confidentiality requirements, maintaining the confidentiality of client information obtained during the audit process.

Continuing Professional Education: External auditors stay updated with changes in auditing standards, regulations, and industry practices through ongoing professional development. They participate in training programs and engage in continuous learning to enhance their knowledge and skills.

benefit's

DOCUMENTS

Financial Statements: The company’s financial statements, including the balance sheet, income statement, cash flow statement, and statement of changes in equity for the audit period.

General Ledger: The general ledger provides a summary of all the company’s transactions and account balances. It includes details of revenues, expenses, assets, liabilities, and equity.

Bank Statements: Bank statements and related documents for all company bank accounts, including reconciliations and supporting documents for transactions.

Supporting Documentation: Invoices, receipts, purchase orders, sales contracts, agreements, and other supporting documentation related to revenue, expenses, assets, and liabilities.

Fixed Assets Register: A register or schedule detailing the company’s fixed assets, including descriptions, acquisition costs, depreciation methods, and accumulated depreciation.

Payroll Records: Payroll registers, employee records, payroll tax filings, and related documentation for verifying employee compensation, benefits, and payroll tax compliance.

Inventory Records: Detailed records of inventory levels, valuation, purchases, sales, and cost of goods sold. This may include physical inventory count reports, inventory valuation methods, and inventory reconciliation records.

Debt and Equity Instruments: Details of debt instruments, such as loan agreements, debentures, bonds, and equity instruments like share certificates, share registers, and share issuance documents.

Contracts and Agreements: Copies of significant contracts, leases, joint venture agreements, licensing agreements, and other legal agreements relevant to the company’s operations.

Tax Records and Filings: Tax returns, tax-related schedules, tax payments, tax assessments, and any correspondence with tax authorities.

Internal Control Documentation: Policies, procedures, and internal control documentation related to financial reporting, including segregation of duties, authorization levels, and control frameworks.

Previous Audit Reports: Previous years’ audit reports and management letters, along with any follow-up actions taken by the company.

Corporate Governance Documents: Board meeting minutes, shareholders’ meeting minutes, board committee meeting minutes, and other corporate governance-related documents.

Legal and Regulatory Compliance: Documentation related to compliance with applicable laws, regulations, and industry-specific requirements.

Any Other Requested Information: Auditors may request additional information, reports, or documentation based on the specific requirements of the audit engagement and applicable auditing standards.

PROCESS

Appointment of Secretarial Auditor – The appointment of a Secretarial Auditor is made by passing a resolution in the Board Meeting.

Communication to earlier Incumbent – After passing the resolution, the next step is formally informing the secretarial auditor about his appointment. This can be done by proposing an engagement letter to the Secretarial Auditor.

Acceptance of Appointment by the Secretarial Auditor – After the formal communication of employment, the secretarial auditor needs to accept the appointment by signing the Letter of Engagement.

Initial Discussions about the company with the Secretarial Auditor – The next step is to discuss the company with the secretarial auditor so that he knows the structure of the company

Preliminary Meeting with the Auditor – After this, there is a meeting with the auditor to decide to make an audit plan.

Finalization of the Audit plan and briefing the staff – After the meeting with the auditor and discussing the audit plan, the next step is to finalize the audit plan and inform others about the same to other staff.

Testing, Interview and Analysis – After this step, the next step is to do the testing interview and analysis.

Preparation of Working Report – The next step is preparing the working report by the secretarial auditor. A working report consists of all the Secretarial audit reports of the company.

Audit Summary for Discussions – The next step is to prepare the audit summary and discuss the same with the concerned persons.

Submission of Secretarial Audit Report – The final step is the submission of the report by the secretarial auditor

VALIDITY

WHY AURIGA?

Get more details

Our Happy Clients!

Excellent

Based on 12 reviews

MD SAHIL

2023-06-10

Auriga Accounting is right CA firm is crucial for the financial health of our business. Auriga Accounting is reputable firm with experienced professionals, strong technology infrastructure, good communication, and transparent pricing.

Prince Kushwaha

2023-06-10

Workplace must be peaceful and be active during work , the Auriga Accounting Private Limited provides relevant and necessary things so employees save their time and complete their task before time period effectively and efficiently

Prince Singh

2023-06-10

Auriga accouting private limited and it's team provide best service at affordable price. I have done my previous year GSTR and ITR they did it before the time

Priyanka Kumari

2023-04-07

They are best coordination with me. Time to time inform me how to work and what work is my pending. Time to time updated me about my company profile work like ROC Filling last date, GST filling last date, ITR etc... I have no paid any penalty since I started working with Auriga..

Vishal Singh

2023-04-07

Best company for providing services, I recommended to all. They give me the best rate of price and finished work before the time.

Sameer khan

2023-04-07

The auriga accounting private limited is a reliable and a customer support company the team has give Clear answer towards the customer by which the customer cannot get confused and get necessary detail to solve their queries and auriga provided me good service and delivered my work on time very well coordinate with me and talk very well I suggest if you have any work then call auriga they will definitely finish your work on time

Vivek Shakya

2023-04-07

Great Services , within affordable rate and give full satisfaction on works. Easy to Cordinate, I have done My Previous year ITR , Startup Registration. I am very happy with their services and their first priority is their Customer.

find way

2023-04-06

I'll give a five-star rating, I had doubts about how to start my work in the field of business and they guide me and instruct me on how to start a business. They have a great team.

623 Anjali

2023-04-06

The Auriga has great services. Efficient communication and really easy way to get help and support.

Anjali Sharma

2023-04-06

Auriga Accounting team represents the highest level of customer services I have experienced.The team gives accurate information and responses to queries very fast, which are customer is facing.