An audit is responsible for benefiting information users by providing them with independent assurance based on risks, which generates added value because the corporate auditing firms in India give important recommendations to the audited parties.

Therefore not only obligated companies but even SMEs should hire the services of corporate auditing firms in India.

The recent major changes in every field and the increasingly competitive environment have changed the audit function, which was previously perceived, evaluated, and implemented as very narrow and limited, and has become one of the most basic assistants of the management in achieving the goals of the institution.

In the following list, which is not restrictive, we will show you some of the opportunities and benefits that corporate auditing firms in India bring for you and the users of your company’s information:

• If you require credit, whether from the financial sector or your suppliers or shareholders, having audited or reviewed financial statements will help these users make smart and informed decisions.
• If you are a start-up company or a growing company, an audit of your internal control processes or systems will provide you with the elements of judgment necessary to face the challenges of growth.
• If you are a company that develops activities that constitute controls for your clients (payroll outsourcing, tax), having an assurance of these processes will provide your clients with the security that the appropriate controls have been established for the provision of said services.

The work of auditing firms includes varied functions and among these, you can find:

• Make sure that the operations that are held or carried out on behalf of the company comply with the prescriptions of the statutes and the decisions of the general assembly and board of directors.
• Giving a timely account in writing, to the assembly, board of partners, board of directors, or manager, of the irregularities that occur in the operation of the company and the development of its businesses.
• Collaborating with the government entities that carry out the inspection and surveillance of the companies, rendering the reports that are requested.
• Ensuring that the accounting of the company and the minutes of the meetings of the assembly, board of partners, and board of directors are regularly kept.
• Rigorously inspecting the assets of the company and ensuring that conservation and protection measures are taken promptly.
• Giving the instructions, carrying out the inspections, and requesting the reports that are necessary to establish permanent control over the social values.
• Authorizing with their signature any balance that is made, with their opinion or corresponding report.
• Summoning the assembly or the board of partners to extraordinary meetings when necessary.
• Reporting suspicious operations to the Information and Financial Analysis Unit when they notice them within the ordinary course of their work.

There are several great benefits that a “correct” audit work provides to customers and significant users, so it is highly recommended to use them regardless of the industry your business belongs to.

This content is meant for information only and should not be considered as an advice or legal opinion, or otherwise. AKGVG & Associates does not intend to advertise its services through this.

Posted by:

CA Aman Aggarwal

AKGVG & Associates