Tax and Statutory Audit and Assurance

Tax and Statutory Audit and Assurance services are designed to ensure that financial statements present a true and fair view of an entity’s financial position while complying with applicable laws and regulatory requirements. These audits play a critical role in maintaining financial discipline, statutory compliance, and stakeholder confidence.

Statutory audits are conducted as mandated under various laws such as the Companies Act, Income Tax Act, and other applicable statutes. Tax audits focus on verifying compliance with tax provisions, accuracy of disclosures, and proper reporting of taxable income.

Scope of Statutory Audit

Statutory audit involves independent examination of books of accounts, financial statements, and underlying records to ensure compliance with prescribed accounting standards and legal requirements.

Key areas covered include:

• Verification of books of accounts and supporting documents

• Examination of accounting policies and compliance with applicable standards

• Validation of financial statements including balance sheet, profit & loss account, and cash flow statements

• Review of statutory compliances under applicable laws

• Reporting in accordance with statutory formats and timelines

Scope of Tax Audit

Tax audit is conducted under the provisions of the Income Tax Act to ensure correct computation of taxable income and proper maintenance of books of accounts.

The process typically includes:

• Examination of books of accounts as per Income Tax Act requirements

• Verification of income, expenses, deductions, and allowances

• Review of compliance with tax provisions and reporting requirements

• Preparation and filing of tax audit reports in prescribed forms

• Identification of discrepancies and reporting observations, where applicable

Audit Methodology

The audit process follows a structured and documented approach to ensure consistency, accuracy, and compliance.

Key stages include:

• Planning and understanding of the entity’s business and internal controls

• Risk assessment and identification of key audit areas

• Detailed verification and substantive testing

• Review of compliance with statutory and tax regulations

• Finalization of audit reports and observations

Assurance Outcomes

Audit and assurance services provide stakeholders with confidence regarding the reliability of financial information and compliance status.

These services assist in:

• Enhancing credibility of financial statements

• Strengthening internal control and governance frameworks

• Ensuring compliance with statutory and tax regulations

• Supporting informed decision-making by management and stakeholders