OVERVIEW

If you own a business, the annual audit can sometimes feel like a time-consuming and expensive process that only benefits the statutory authorities. We make sure all your onerous reporting requirements are met as painlessly as possible- keeping banks, creditors, finance providers, and even the inland revenue, happy.

But more than that – we aim to offer you the kind of business advice that could help you to run your company efficiently and cost-effectively.We also offer expert corporate tax planning advice, to make sure you’re as tax-efficient as possible.

AUDIT

Auditing Firms Delhi can test your performance against industry standards, even against your direct competitors. We’ll review your accounts department and the control measures you currently use, recommending ways to improve. We might discover that your competitors are receiving payment more quickly than you, your stock levels might be higher than the industry norm, or perhaps your company takes longer than average to complete orders and sell finished work. Or there may be ways to improve your cashflow using some careful tax planning.

Our audit is special because of the people who do it – we only recruit the best, and they’re not afraid to get their hands dirty if it means they really get to understand your business. We train all our staff to anticipate client needs, communicate clearly and take ownership of their work. And because we draw on the experience of our senior partners across all disciplines, we take every opportunity to help your business grow.

There’s no such thing as ‘just another audit client’ at A&t Solutions. you’re a growing enterprise, and your growth is the focus of our business. So don’t be afraid of your audit – use it.

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We provide following Audit Services

• Internal Audit Services / Concurrent Audit Services
• Management Audit Services
• Operations and Efficiency Audit Services
• Special Investigative Audit Services
• Due Diligence Review
• Costing and Accounting System Design and Review
• Compilation of final accounts as per accounting standards of US GAAP
• Internal Audits

What’s an Internal Audit

Internal Audit is an independent appraisal function established within an organization to examine and evaluate its activities as a service to the organization. It is an independent, objectives assurance and consulting activity designed to add value and improve an organization’s operations. It helps organization to accomplish objectives by bringing a systematic, disciplined approach to evaluate and improve the effectiveness of risk management, control and government process.

Scope and Objectives of Internal Audit

As per AAS-6, Internal Control System refers to all the policies and procedures adopted by the management of the entity to assist in achieving management’s objectives ensuring the orderly conduct of the business, the accuracy and completeness of accounting records, the timely preparation of financial information, safeguarding of assets of enterprises and detection of fraud and errors in a timely manner. The internal audit function constitutes a separate component of internal control with the objective of determining whether other internal controls are well designed and properly evaluated.

The Scope and Objectives of internal audit vary widely and are dependent upon the size and structure of the entity and the management’s requirements. The internal audit normally operates in one or more of the following areas:

(a)Review of accounting system and related internal controls: Although the establishment of an adequate accounting system and related internal controls is the responsibility of the management. However it is must that they are reviewed from time to time to ensure that they are operating effectively and recommend any improvement thereto;

(b) Examination of Management of financial and operating information : It includes the review of the means used to identify, measure, classify and report such information and specific inquiry into individual items including tests of transaction;

(c) Examination of the economy, efficiency and effectiveness of operations including the financial controls of an organization: This will help the external auditor when it has an important bearing on the reliability of the financial records;

(d) Physical examination and verification: It includes the examination and verification of physical existence and condition of the tangible assets of the entity.

The objects of internal audit can be stated as follows:

(a) Verification of the accuracy and authenticity of the financial, accounting and statistical records.

(b) Ascertaining that accepted accounting policies and practices have been followed while preparing the financial accounts.

(c) The assets are purchased or disposed under proper authorization. Also ensuring that the access to assets is restricted to the authorized persons at the authorized times.

(d) Confirming that the liabilities are incurred for the legitimate activities of the organization.

(e) The internal checks system operating in the organization is sound and economical.

(f) Fraud and errors are prevented and detected.

(g) Reviewing overall operations of internal control system and if deviations or weakness are noted, the same are communicated to the appropriate authorities on timely basis. This will help in instituting corrective actions.

Service Tax Audit in India – An Overview

Director General of Audit, has published services tax audit manual, 2010, 2010. As per the guidance, taxpayers whose annual service tax payment (including cash and cenvat) was Rs 30 million or more in the preceding financial year may be subjected to mandatory audit each year. It is preferable that audit of all such units is done by using computer assisted audit program (CAAP) techniques. The frequently of audit for other taxpayers would be as per following norms:.

• Taxpayers with service tax payment above Rs 30 million (cash+ cenvat) (mandatory units) to be audited every year.
• Taxpayer with service tax payment between Rs 10 million and Rs 30 million (cash+ cenvat) to be audited once every two years.
• Taxpayers with service tax payment between 2.5 million and 10 million (cash + cenvat) to be audited once every five year.
• Taxpayers with service tax payment up to 2.5 million (cash + cenvat) 2% of taxpayers to be audited every year.

The audit selection guidelines, therefore would apply to the non-mandatory taxpayers, forming part of discretionary workload. These taxpayers should be selected on the basis of assessment of risk potential to the revenue. This process, which is an essential feature of audit selection, is known as Risk Assessment. It involves the ranking of taxpayers according to quantitative indicators of risk known as a “risk parameter”. It is also suggested that the taxpayers whose returns were selected for detailed scrutiny, the taxpayers who have been selected for audit, may not be taken up for detailed scrutiny of their ST-3 returns during that year.

FOCUS OF AUDIT IN SERVICE TAX-BOOKS/RECORDS

The focus of audit in service tax matters is again to be seen from the revenue’s point of view. The objective is to find out whether there has been proper and appropriate payment of service tax by an assessee.

BOOKS AND RECORDS FOR SERVICES TAX PURPOSES

It is an interesting to note that the Finance Act, 1994 or the Services Tax Rules, 1994 do not prescribe any set of books or records to be maintained by the service tax assessees. The assessees are free to maintained their own books/accounts. In fact rule 5 of the services tax rules, 1994 provides that the records including computerized data as maintained by an assessees in accordance with the various laws in force from time to time shall be acceptable to the Department. Accordingly, service tax assessees who are joint stock companies governed by the provisions of Companies Act, 2013 will maintain books/ accounts as prescribed under the Companies Act, 2013. Assessees who are registered under the Co-operative Societies Act or under the Societies Registration Act will maintain books/records under the respective rules/regulations framed under the laws governing the assessees. Similarly, assesses who are registered as Trust will maintain books/accounts as required of them under the law governing the trust, if any. Assessees who are receiving foreign contributions will maintain books/records specially required of them as prescribed under the Foreign Contributions Regulation Act /rules framed thereunder. Similarly sole traders and partnership firms will maintain accounts/books as required under the income tax /sales tax acts including work contracts and also as required under the Tax Audit rules under the Income Tax Act 1961 besides records under other tax laws and special statutes such as Insurance Laws, Banking Laws and Rules and Regulations framed thereunder. Normally service tax assessees maintain the following records: