AUDIT & ASSURANCE

Statutory Cost Audit

As per Companies (Cost Records and Audit) Rules, 2014, the class of companies which also include foreign companies, are required to maintain “Cost Records”. Cost accountant in practice may assist the company to maintain the Cost Records as per the Companies (Cost Records and Audit) Rules, 2014.

Cost Audit is a critical review undertaken to verify the correctness of Cost Accounts and to check that cost accounting principles and planning have been efficiently followed. It is noteworthy that India is the only country which has introduced statutory cost audit to regulate about 45 vital industries of the country. Cost Audit has been defined by the Chartered Institute of Management Accountants (CIMA) of Landon as “the verification of cost accounts and a check on the adherence to the cost accounting plan.

GST Audit

Audit under GST is the process of examination of records, returns and other documents maintained by a taxable person. The purpose is to verify the correctness of turnover declared, taxes paid, refund claimed and

Internal Audit

An internal audit is the examination, monitoring and analysis of activities related to a company's operations, including its business structure, employee behavior and information systems. Internal audit regulations, such as the Sarbanes-Oxley Act of 2002, have increased corporate requirements for performing internal audits. Audits are important components of a company's risk management as they help to identify issues before they become substantial problems, such as attempts to steal intellectual property.

Schedule audits on a calendar helps ensure they are performed consistently. Departments should be given notice so they can have the required documentation and materials available for the auditor. A surprise audit may be conducted if suspicion of unethical or illegal activity exists.

Vat Audit

A value added tax (VAT) is a consumption tax added to a product's sales price. It represents a tax on the "value added" to the product throughout its production process.

VAT Act requires certain dealers/persons to get their accounts audited by an accountant, within the prescribed period from the end of the year. The report of such audit is required to be furnished in a prescribed format. The provisions contained in the Act and Rules in this regard are reproduced below for the attention of members.

Explanation: For the purposes of this section, "Accountant" means a Cost Accountant within the meaning of Cost & Works Accountants Act, 1959).

Information System Audit/Risk Based Audit.

The Information Systems (IS) audit group assesses the University's critical systems, technology architecture and processes to assure information assets are protected, reliable, available and compliant with University policies and procedures, as well as applicable laws and regulations. We emphasize the importance of mitigating security risks during our audit coverage of the University’s application, operating and networking systems. Through our integrated and IT governance audits, we evaluate information technology’s impact on the University’s processes and its abilities to achieve its goals and objectives.

Bank Audit – Concurrent , Revenue, & Stock Audit

Concurrent audit means doing the examination of the financial transactions at the time of happening or parallel with the transaction. It is part of a bank's early warning system to ensure timely detection of irregularities and lapses. It helps in preventing fraudulent transactions at branches. A Revenue audit is an examination of the information and figures shown by a taxpayer in their tax returns against those shown in their business records.

Stock Audit - Stock and Debtors being the primary Security in Cash Credit, Bankers have started appointing CMA/CA. Firm to conduct stock audit, where the exposure exceeds threshold limit (i.e 100 lacs or 500 lacs ,as per the Banks’ policy), in way back 1992 onwards after Harshad Mehta scam. Stock Audit helps in Prevention and early detection of Frauds.

Stock Audit is conducted to ensure

• Proper Preservation/storage of Stock.
• Whether obsolete & non-moving stock has been segregated.
• Whether stock is adequately insured against all major perils.
• Whether physical stock confirming with the stock statement submitted to the Banker.
• Whether stock is owned by Borrower and Finance is made available against value of paid stocks only.
• Age-wise & Party-wise Book-Debts analysis submitted to the Bankers tallied with the Books.