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Audit and Assurance - Overview

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Audit and Assurance - Overview

The main focus of our audit and assurance team is to provide quality services that suit your needs, to offer helpful suggestions that develop your operations, to give financial guidance, when necessary, to provide you the Best Audit Service in Delhi, and to deliver a level of service that result in a long-lasting relationship. We aim to be first on your mind when you have any questions, and we take a suitable time to form that good relationship.

Let us have an overview of Audit and Assurance Services!

What is an Audit?

The term audit usually refers to a review of the financial statement. A financial audit is an unbiased examination and evaluation of the financial statements of an organisation to ensure that the financial records represent a true and fair view of the business transactions they claim to perform. The audit can be conducted within the organisation by its employees itself or externally by engaging an outside chartered accountants firm.

What is Assurance Service?

Assurance services are an independent professional service ordinarily provided by chartered accountants. Assurance services can include an examination of any financial document or transaction, such as a loan, any contract or arrangement, etc. This review verifies the correctness and validity of the item being reviewed by the professionals.

Assurance services providers help clients navigate the complexities, risks, uncertainties and opportunities in their companion networks by proactively handling and monitoring risks presented by third-party relationships. Businesses typically use assurance services to improve the transparency, importance, and value of the information they reveal to the market and investors. Many find by sharing business accomplishment better; it becomes a sustainable growth and competitive for differentiation strategy.

Audit and Assurance at MAG

We, one of the best auditing firms, are known for providing the best audit services in Delhi. We provide a range of services including, but not limited, to the following:

Statutory Audit

  • - A statutory audit is a legally required review of the correctness and accuracy of a company's financial statements and related records. The sole objective of a statutory audit is to assess whether an organisation provides a fair and correct representation of its financial position by examining data such as accounting records, bank balances and commercial transactions.

Internal Audit -

  • Internal auditing is an objective assurance and consulting activity intended to add value and improve an organisation's business transactions. It can help an organisation fulfil its strategic objectives by taking a systematic, well-organised approach to assessing and enhancing the effectiveness of risk management, control, and governance processes.

Tax Audit -

  • Tax Audit involves an audit of financial records of a business in compliance with provisions of the Income-tax Act in India and providing disclosures in the prescribed formats. We have a team of experts who work with different taxes like Income tax, GST, service tax, sales tax etc. Our satisfied clients have rated us as the best Income tax audit firm in Delhi.
  • Fixed Assets Audit -

    Auditing fixed assets is vital to ensure that accounting for capital assets and depreciation complies with the objectives of management. Fixed asset audit helps to prepare the accurate balance sheet. Hence it ensures regulatory compliance. Also, fixed asset audits provide better internal control.
  • Stock Audit -

    Sock or inventory audit means physical verification of stock of a company or institution. There are many stock audits, depending on the purpose, and every stock audit requires a different approach. Every business organisation at least needs to conduct a stock audit once a year to update and ensure that the physical stock count and the computed stock in the books match. A stock audit helps in analysing the correct discrepancies between the actual physical inventory and stock register maintained by the management.
  • Management Audit -

    This involves an audit of functions of operations management department of an organisation for acquisitions and company mergers. In this case, our auditing firm, MAG, closely works with a specific department to help them improve their overall efficiency.
  • Revenue Audit -

    This is a two-step process which scrutinises the data and information as provided in tax returns against the ones found in actual business records.
  • Due Diligence -

    Due diligence is an examination, audit, investigation or review performed to establish the facts of a matter or transaction under consideration. In this world of finance, due diligence requires an extensive analysis of financial information and records before entering into a proposed deal with another person or business house.

How can we help?

Meeting and fulfilling clients needs requires us to stay updated on every change in the field of auditing, as well as being conscious of the issues that you may face both internally and externally. We pride ourselves on our technical expertise, and our internal control standards enable us to stay abreast of all the developments in the auditing and assurance field. We also devote time for conferences and seminars to stay informed on significant changes within the industries in which our clients operate. While performing an audit, we always look for areas of improvement and provide suggestions on every notable change.

We, at MAG help in providing top audit and assurance services in Delhi and engage our prestigious clients on an ongoing basis to ensure that statutory and regulatory requirements are adhered to. This includes the required disclosures and value-added Services. We promise quality audit assurance services in Delhi so that you can spot hidden potential and prospective trouble areas in your business. We work with the highest possible levels of integrity and professional ethics while maintaining the required business standards.

We, being one the best audit companies in India, believe that audits are an ongoing process that should never interfere with business operations. Hence, prior planning and adequate staffing are essential to ensure there is no delay in services. We try to get an in-depth understanding of the operations of an organisation before beginning an audit. What makes us a unique audit firm in Delhi is that all our services are tailor-made to the needs of a company and the objectives to be achieved. This needs a well-defined knowledge of the goals, operating policies of your business, regulatory as well as information requirements.

We also promise quality assurance services so that you can spot hidden potential and prospective trouble areas in your business. We work with the highest possible levels of integrity and professional ethics while maintaining the required business standards.

If you are seeking audit and assurance service in India or looking for the best audit firms in India or bank audit consultant in India, reach out to us at and enjoy the services with exemplary commitment from our team of experts.

Frequently Asked Questions

The objective of conducting an Audit is to form an independent opinion on the financial statements of an organisation. The opinion comprises whether the financial statements show a true and fair view of the entity’s financial performance & financial position and have been properly prepared in accordance with the applicable Accounting Standards and reporting framework.
As per Section 143 of the Companies Act, 2013, the major duties of an auditor include:

* Duty to enquire on certain matters

One of the auditor’s main duties is to make inquiries when he finds it necessary. A few examples of such enquiries are:

* whether any personal expenses have been booked in the Revenue Account

* whether loans made by the company have been shown as deposits

* Duty to comply with Auditing Standards

The Auditing Standards aid the auditor in conducting his audit duties with relevant efficiency and accuracy. The auditor must comply with these standards while performing his duties.

* Duty to report on frauds

Since an auditor examines the books of accounts of a company, sometimes he may uncover a fraudulent transaction. In such cases, he must report the fraud to the Central Government or the Board of the Company, as the case may be applicable.

* Duty in case of a branch audit

In a case where the auditor is the branch auditor and not the auditor of the entity, he is responsible for assisting in the completion of the branch audit. He shall prepare a report based on the accounts of the branch as examined by him and send it across to the company auditor. The company auditor will then incorporate this report into the main audit report of the company.

Duty to report

The auditor is liable for preparing an audit report based on the examination of the company’s financial statements. He must ensure that the books of accounts and financial statements comply with relevant laws such as the Companies Act 2013.

In addition to this, he must ensure that the entity’s financial statements depict a true and fair view of the entity’s affairs at the end of its financial year.

* Duty to state the reasons for qualification or negative report

If any matters required to be included in the audit report are answered negatively or with a qualification, the auditor must state the reasons thereof.

Duty to sign the audit report

The auditor must sign the audit report issued by him after carrying out the audit procedure.
There are many types of audits that can be conducted depending on the area of focus and information required out of audit. Based on the legal obligation, audits can be broadly classified as follows:

1: Audit required under law

Certain types of audits are mandated to be conducted by law. The examples include:

* Tax Audit

The Income Tax Law requires certain assessees to get the accounts of their business/profession audited from the viewpoint of the Income Tax Act.

* Statutory Audit

As per the Companies Act 2013, every company is required to conduct a statutory audit to assess whether it complies with the applicable laws, rules, and regulations and whether the financial statements reflect a true and fair view of its financial position.

2: Audit under Voluntary Category

There are various types of audits that are not required by any law, but many enterprises conduct them as a matter of internal rules. The examples include:

* Stock Audit

Stock audit means physical verification of the inventory. It helps to maintain inventory accuracy, prevent pilferage and fraud, identify the gap in the inventory management process and ensure that the entity always has the correct quantity of stock at the right time.

* Management Audit

Management Audit is a kind of appraisal in which the performance of the overall management is evaluated through a comprehensive assessment by an independent authority.
No, Audit is not the same as accounting.While accounting deals with identifying, recording, classifying, summarising and interpreting the financial transactions to determine the financial position and performance of an organisation, auditing fulfils the role of verifying the accuracy of the accounts and financial statements of the organisation. Auditing in many ways determines the integrity of the whole accounting system of a company.
The significant differences between Audit and Assurance services are as follows:

* Audit is a process of closely monitoring the accounting information presented in a company’s financial statements. On the other hand, Assurance involves assessing and analysing different operations, processes, and procedures.

* Audit often requires more time and resources as compared to assurance services.

* Audit is the first step, whereas the assurance procedure starts once the Audit is complete.

* Audit is a mode to disclose any fraudulent or dishonest activity, i.e., misuse of funds or misrepresentation of facts. Conversely, Assurance specialises in assessing and improving the quality of the information in a company. It helps in decision making in an organisation.

* Auditors have extensive rights to access the financial data and records for carrying out the Audit. There are normally fewer rights granted to the firm conducting an assurance process.

Tax audit is important to ensure compliance with tax laws and regulations, detect errors, prevent fraud, and avoid penalties and legal consequences.

Every business organisation at least needs to conduct a stock audit once a year to update and ensure that the physical stock count and the computed stock in the books match.

The key objectives of conducting a stock audit are to ensure accurate stock count, update stock records, and identify discrepancies between physical inventory and stock register.

An internal audit is conducted by employees or management  within the organization to evaluate internal controls and operational effectiveness, while an external audit is performed by independent professionals to provide an objective opinion on financial statements and other compliance.
The scope of an audit includes examining financial records, assessing internal controls, verifying compliance with laws and regulations, and providing assurance on the accuracy and reliability of information.
An audit provides a high level of assurance with extensive testing, while a review engagement offers limited assurance with analytical procedures and inquiries, but no detailed examination of evidence.
Due diligence is significant in financial transactions as it involves a comprehensive examination and analysis of financial information to verify its accuracy, assess potential risks, and make informed decisions, ensuring transparency and minimizing unforeseen issues.
A stock audit helps in maintaining accurate inventory records by conducting a physical verification of stock, identifying discrepancies between actual physical inventory and stock register, and ensuring proper reconciliation, leading to improved inventory management and control.
 Audits are important for several reasons:
  1. Financial Reporting Integrity: Audits help ensure the accuracy and reliability of financial statements, providing stakeholders with confidence in the organization's financial information.
  2. Compliance: Audits verify the organization's compliance with relevant laws, regulations, and industry-specific standards, reducing the risk of legal and regulatory non-compliance.
  3. Risk Identification: Audits identify potential risks and control deficiencies within an organization, enabling management to take corrective actions and strengthen internal controls.
  4. Fraud Detection: Audits help detect and prevent fraudulent activities, including misappropriation of assets, financial statement fraud, or unethical practices.
  5. Governance and Transparency: Audits contribute to improving corporate governance by evaluating the effectiveness of internal controls, risk management processes, and board oversight.
Several types of audits can be conducted, including:
  1. Financial Statement Audit: This type of audit focuses on examining the financial statements to express an opinion on their accuracy and compliance with accounting standards.
  2. Internal Audit: Internal audits are conducted by employees or an internal audit department within an organization. They assess internal controls, risk management processes, and operational efficiency.
  3. External Audit: External audits are conducted by independent auditors who are not employees of the organization. They provide an unbiased assessment of the financial statements and compliance with regulations.
  4. Compliance Audit: Compliance audits assess an organization's adherence to specific laws, regulations, contractual obligations, or internal policies.
  5. Operational Audit: Operational audits evaluate the efficiency and effectiveness of an organization's operations, processes, and procedures to identify areas for improvement.
  6. IT Audit: IT audits focus on reviewing an organization's information technology systems, controls, and data security to ensure the integrity and confidentiality of information.

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