How we approach an audit assignment
Every engagement starts with an engagement letter that sets out scope, timeline and the records we'll need — there's no fieldwork before that's agreed. Field visits and vouching are carried out by the team, but the audit plan, key judgement calls and the final opinion are the responsibility of the partner whose signature is on the report.
For a statutory audit, that report is what gets filed with the ROC and read by your bank, so we treat it accordingly — observations that affect the opinion are raised with management before the report is finalised, not discovered afterwards. Where an audit turns up a compliance gap outside its own scope, such as a missed ROC filing found during a statutory audit, we flag it separately rather than leaving it for the client to notice on their own.
Frequently asked questions
Is a statutory audit compulsory even if my company had no turnover?
Yes. Every private limited company must have its accounts audited every year under Section 143, regardless of turnover, profit or business activity.
What's the difference between a statutory audit and a tax audit?
A statutory audit is required of every company under the Companies Act. A tax audit is required under the Income Tax Act once turnover or gross receipts cross the prescribed limits, and applies to companies, firms and individuals alike.
Can the same firm do both my statutory audit and my accounting?
Independence rules restrict a firm from auditing books it also maintains in certain circumstances. We'll flag this during scoping if it applies to your engagement.
How long does a statutory audit take?
It depends on the size of the business and how ready the books are. A well-maintained small company can often be closed out within a couple of weeks; a business with incomplete records or multiple locations takes longer.
Can a chartered accountant audit a company they're also a director of?
No. Independence rules under the Companies Act prevent an auditor from having a personal or financial interest in the company being audited, including a directorship.
What records should I have ready before an audit starts?
Books of account, bank statements, supporting invoices and vouchers, the prior year's audited financials, and statutory registers are the usual starting point. The exact list depends on the type of audit and is confirmed at the engagement-letter stage.