Audit & Assurance
Statutory audit, internal audit and assurance work for companies.
- For
- Companies that need an auditor appointed, or independent assurance for a board, lender or investor.
- Timing
- April–September for a 31 March year end; limited reviews each quarter
Scope
- Statutory auditAudit of financial statements under the Companies Act, 2013 and the Standards on Auditing, with CARO 2020 and IFC reporting where they apply.
- Consolidated financial statementsAudit for groups with subsidiaries, associates or joint ventures.
- Limited reviewReview of interim financial information for boards, lenders and investors.
- Internal auditRisk-based internal audit, including companies covered by section 138.
- Internal financial controlsDocumentation, walkthroughs and testing of controls over financial reporting.
- SOPs and process reviewsProcess notes, risk and control matrices and policy manuals.
- Physical verificationInventory counts and fixed-asset verification, observed and reconciled to the books.
- CertificationsNet worth, turnover, utilisation and other certificates, each with a UDIN.
How it runs
- 01AcceptanceIndependence check and, for audits, communication with the previous auditor.
- 02PlanningMateriality, risk areas and a timetable agreed with your finance team.
- 03FieldworkControls and balances tested; queries raised as they arise, not at the end.
- 04ReportingFindings discussed in draft before the report is signed and a UDIN generated.
Information we will request
- Trial balance and draft financial statements
- Prior-year audited financial statements and audit report
- Statutory registers, board minutes and key agreements
- Fixed-asset register and inventory records
- Bank statements and confirmations
- Contact details of the previous auditor, where the auditor is changing
Boundaries
Independence. Section 144 bars a company's statutory auditor from providing internal audit, accounting, book-keeping and certain other services to it. Where we are your auditor, we say at the outset which other services we cannot take on.
Change of auditor. Before accepting an audit, we write to the previous auditor, as the ICAI Code of Ethics requires.
Responsibility. Management prepares the financial statements; the audit expresses an opinion on them. Each report states what it covers.