Audit & Assurance: Bolster Your Business in 2024
An audit, though appearing like an additional step, adds considerable value. Under the Companies Act of 2013, a statutory audit is prescribed for most companies in India. This means an independent Chartered Accountant goes over your books and gives his opinion on whether the financial statements present a “true and fair view”. Separately, under Section 44AB of the Income Tax Act, a tax audit is prescribed when the turnover exceeds prescribed limits, presently ₹1 crore for businesses and ₹50 lakh for professionals. Thus, several startups and SMEs would go through one or both of these audits each year to keep themselves within the four walls of the law.
Types of Audits and Why They Matter
Statutory Audit: Under the Companies Act, private limited companies have to get an audit if their turnover or capital exceeds certain limits. An audit report is given by a qualified CA, adding a lot of credibility. Banks, investors, and regulators rely on audited financials as a stamp of authenticity. For instance, lenders demand audited statements before approving loans, while investors will not fund a startup without clear audit reports.
Tax Audit-Income Tax Act: It ensures that you have correctly returned your income and deductions. Filing a tax audit report along with ITR helps you to stay away from receiving a tax notice. According to one guide, an auditor ascertains your compliance with the provisions of the Act and accuracy of books for tax purposes.
Internal Audit: Not necessarily statutory, but highly recommended. It is an internal check-all by staff or outsourced auditors-on business processes and controls. Regular internal reviews can catch inefficiencies or errors early that can make the statutory audit smoother and operations better.
Benefits of an Audit
Legal Compliance: Auditing keeps you “on the right side of the law”. Identifying and correcting errors on time saves your company from penalties. For instance, timely filing of ROC and GST audits reflects compliance to authorities.
Stakeholder Trust: Audited books build confidence. Investors and banks recognize audited statements as credible proof of performance, often leading to better loan terms or successful fundraising.
Operational head: Auditors can identify financial leakages or accounting errors; this feedback allows management to put necessary controls, avoid fraud, and increase profitability.
Decision-making support: Once your finances are verified, it is easier to make strategic decisions such as expansion, hiring, investments based on solid numbers.
Experienced auditors make this process painless. The Audit & Assurance Group at GVC specializes in statutory and tax audits, fieldwork simplified with digital tools, and clear reports so you precisely know where your business stands.
Investing in an audit is an investment in your business’s health, really. Need to make sure your accounts are rock-solid? Reach out to GVC’s audit professionals today for a consultation, and let our Chartered Accountants reinforce the financial foundation of your company.
Excellent experience working with Gupta Varun & Co (GVC). They guided me through every step with clarity and patience. The team is supportive, well-versed with rules, and always keeps you updated. Definitely a firm you can depend on.
Gupta Varun & Co. is a reliable and professional firm that delivers work on time and with clarity. Their team maintains good communication, explains things in a simple way, and ensures the entire process feels smooth and well-handled. Overall, a dependable firm for anyone looking for consistent support and quality service.
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