Audits & Assurance
Audits and assurance services are critical to ensuring the accuracy, reliability, and transparency of an organization’s financial and operational activities. They help businesses build stakeholder trust, comply with statutory requirements, and strengthen internal controls.
1 Statutory Audit
- Meaning: A legally mandated audit of a company’s financial statements to ensure compliance with the Companies Act, 2013.
- Applicability: Every company (Private/Public) must get accounts audited annually.
- Scope:
- Verification of books of accounts.
- Examination of balance sheet, profit & loss, and cash flow statements.
- Compliance check with Accounting Standards & Company Law.
- Report: Auditor issues an audit report forming an opinion on the "true and fair view" of financial statements.
2️ Tax Audit (u/s 44AB of Income Tax Act)
- Applicability:
- Businesses with turnover > ₹1 crore (₹10 crores if cash transactions <5%).
- Professionals with receipts > ₹50 lakhs.
- Scope:
- Checking compliance with Income Tax provisions.
- Verification of deductions, depreciation, and other allowances.
- Reporting in Form 3CA/3CB and 3CD.
3 Internal Audit
- Meaning: An independent appraisal of operations within an organization.
- Applicability: Certain companies based on turnover and paid-up share capital.
- Scope:
- Evaluate internal controls.
- Detect fraud and mismanagement.
- Risk management and process improvement.
- Why important? Helps management improve efficiency and governance.
4 GST Audit
- Applicability: Earlier required for turnover > ₹2 Cr (self-certification introduced after amendments).
- Scope:
- Reconciliation of sales, purchases, ITC with GST returns.
- Verification of tax liability and compliances.
- Identification of mismatches with GSTR-1, GSTR-3B, and GSTR-9.
5 Stock Audit
- Meaning: Audit of inventory/stock carried out for internal control or bank requirements.
- Scope:
- Physical verification of stock.
- Comparison with books of accounts.
- Detection of obsolete, non-moving, or slow-moving stock.
- Use: Essential for companies availing bank credit/loans.
6 Concurrent Audit
- Meaning: Real-time examination of financial transactions, mainly in banks and NBFCs.
- Scope:
- Daily transaction verification.
- Checking for irregularities, frauds, and compliance with RBI guidelines.
- Why important? Prevents risks and ensures real-time monitoring.
7 Management/Operational Audit
- Meaning: Independent review of operations for efficiency and productivity.
- Scope:
- Evaluates internal processes.
- Identifies cost-saving opportunities.
- Improves resource utilization.
- Goal: To strengthen decision-making and overall business performance.
8 Forensic Audit
- Meaning: Specialized audit to detect fraud, misstatements, or financial irregularities.
- Scope:
- Investigative procedures.
- Examination of suspicious transactions.
- Support in legal proceedings.
9 Due Diligence Audit
- Meaning: Detailed financial, legal, and operational review conducted before mergers, acquisitions, or investments.
- Scope:
- Verification of financial health.
- Compliance and liability assessment.
- Risk analysis for investors.
Assurance Services by Nexgenca
Why Choose Nexgenca for Audits & Assurance?
- Experienced professionals (CA, CS, tax & legal experts).
- Technology-driven audit tools.
- Transparent, accurate, and reliable reporting.
- Tailored solutions for Startups, SMEs, and Corporates.
- Focus on compliance + performance improvement.
• Audit is the examination of financial records to give an opinion on whether they show a true and fair view.
• Assurance is a broader service that improves the reliability of information (not limited to financial statements).
Yes. Every company registered under the Companies Act (Private/Public/OPC/Section 8) must get its accounts audited annually by a Chartered Accountant.
A statutory audit is a compulsory audit under the Companies Act, 2013, conducted to ensure that the financial statements of the company comply with law and show a true and fair view.
Only a Chartered Accountant (CA) or a firm of Chartered Accountants holding a valid certificate of practice can conduct a statutory audit.
A Tax Audit is conducted under the Income Tax Act to ensure that income, expenses, and deductions are reported correctly. It applies when:
• Business turnover > ₹1 crore (₹10 crores if cash transactions ≤ 5%).
• Professional receipts > ₹50 lakhs.
• Internal Audit: Conducted by management-appointed auditors for internal control and process improvement.
• Statutory Audit: Legally required by law and done by an independent CA.
No. Internal audit is mandatory only for:
• Listed companies, and
• Certain companies based on turnover and paid-up capital (as prescribed in Companies Act, Sec. 138).
A GST audit verifies whether the GST returns filed (GSTR-1, GSTR-3B, GSTR-9) match with financial records. It ensures correct Input Tax Credit (ITC) claims and tax payments.
A Stock Audit is verification of physical inventory with records. It helps:
• Detect discrepancies in stock.
• Prevent pilferage/fraud.
• Satisfy lender/bank requirements before giving loans.
It is a real-time transaction audit, usually for banks and financial institutions, to detect irregularities instantly.
A forensic audit is an investigation of financial transactions to detect fraud, misappropriation, or financial irregularities. It is often used in litigation.
• Audit Report: Provides an opinion on financial statements.
• Assurance Report: Provides confidence about the reliability of any kind of information (financial or non-financial).
A due diligence audit is performed before investments, mergers, or acquisitions to evaluate the financial, legal, and compliance position of the target company.
• Company: Fine up to ₹5 lakhs.
• Officers in Default: Fine up to ₹25,000.
• Auditor (if fails to report): Penalties + Disqualification.
• Expert Chartered Accountants & professionals.
• Technology-driven audit process.
• Transparent, reliable, and compliant reporting.
• Tailored services for startups, SMEs, and corporates.
• One-stop solution for Statutory, Tax, GST, Internal & Specialized audits