Audits Conducted and Signed by Chartered Accountants

Section 44AB of the Income-tax Act requires an audit of accounts once business turnover or professional gross receipts cross thresholds set by law. The applicable threshold depends on factors such as whether you carry on a business or a profession and the share of transactions settled digitally, and the limits are revised from time to time, so the current figures should be verified for your case. We check applicability from your actual turnover and receipts before the year ends, so the audit is planned rather than rushed.

Companies incorporated under the Companies Act require an annual audit of their financial statements by an independent Chartered Accountant, regardless of size or turnover. The auditor examines the books of account, verifies balances and supporting records, evaluates the accounting policies applied, and reports whether the financial statements give a true and fair view. The signed audit report accompanies the accounts placed before shareholders and filed with the Registrar of Companies.

A statutory audit is required by law, is performed annually by an independent auditor, and results in an opinion on the financial statements. An internal audit is commissioned by management, can run through the year, and focuses on processes, internal controls and operational risks rather than only the year-end numbers. Many businesses use both: the internal audit strengthens systems during the year, and the statutory audit provides the independent year-end opinion on the accounts.