Types of Audit
A Statutory Audit is a legally mandated examination of a company’s financial statements conducted in accordance with the Companies Act, 2013, and other applicable accounting and auditing standards. Its primary purpose is to ensure that the financial statements provide a true and fair view of the company’s financial position and performance.
During a statutory audit, our team thoroughly verifies books of accounts, accounting policies, vouchers, receipts, and statutory compliance documents. We assess whether financial transactions are recorded accurately, accounting principles are applied consistently, and required disclosures are made.
Statutory audits are essential for shareholders, regulators, banks, and other stakeholders, as they provide confidence in the integrity of financial statements. A properly conducted statutory audit also helps management identify errors, fraud, inefficiencies, or compliance gaps, enabling corrective actions and strengthening internal controls.
Internal Audit is an independent and systematic evaluation of a company’s internal controls, processes, and operations. Its main purpose is to help management identify risks, inefficiencies, and gaps in business operations while strengthening overall governance.
Unlike statutory audits, which are legally mandated, internal audits are management-driven and focus on improving operational efficiency, risk management, and compliance with internal policies. The audit covers financial records, operational workflows, IT systems, and internal policies, ensuring that the organization’s resources are used effectively and objectives are met.
Internal audits help businesses proactively detect irregularities, prevent fraud, and reduce operational risks. They also provide management with practical recommendations to improve procedures, optimize performance, and ensure that the organization operates in a controlled and compliant manner.
3. Tax Audit
Tax Audit is a statutory audit conducted under the Income Tax Act, 1961, primarily applicable to businesses and professionals whose turnover, gross receipts, or professional fees exceed the thresholds specified under the law. The purpose of a tax audit is to ensure that the income, expenses, deductions, and tax liabilities declared in the books of accounts and financial statements are accurate, complete, and in compliance with tax laws.
During a tax audit, a detailed examination of financial records is carried out, including sales and purchase registers, cash books, bank statements, loans, advances, and supporting vouchers. Particular attention is paid to deductions claimed, depreciation, tax payments, and compliance with statutory provisions, to ensure that all entries are legitimate and correctly reported. The auditor prepares a report in the prescribed forms—Form 3CA/3CB and Form 3CD—which is submitted to the Income Tax Department along with the Income Tax Return.
The benefits of a proper tax audit extend beyond compliance. It helps businesses identify errors, discrepancies, or potential areas of tax exposure, reducing the risk of penalties or scrutiny from tax authorities. It also strengthens internal accounting practices, provides management with insights into financial operations, and ensures transparency and accuracy in tax reporting.
4. GST Audit & Review
GST Audit & Review involves a systematic examination of a business’s Goods and Services Tax (GST) records, invoices, returns, and reconciliations to ensure accuracy, completeness, and compliance with GST laws. The primary objective is to identify any discrepancies, errors, or potential non-compliance that could lead to penalties or legal issues.
During a GST audit, our team reviews purchase and sales registers, input tax credit (ITC) claims, GST returns (GSTR-1, GSTR-3B, etc.), and reconciliations with accounting records. We check for mismatches between the books of accounts and GST filings, validate the correctness of tax rates applied, and ensure that all statutory requirements are being met.
GST audits are critical for businesses of all sizes, as non-compliance or errors can result in interest, penalties, or notices from tax authorities. A thorough review helps businesses correct errors proactively, claim eligible ITC accurately, and maintain proper documentation for future audits.
5. Management Audit
Management Audit is a systematic evaluation of a company’s management policies, decision-making processes, and resource utilization. Unlike financial audits that focus solely on numbers, management audits examine how effectively an organization is being managed and whether its objectives are being achieved efficiently and economically.
The audit assesses planning, organization, staffing, coordination, and control mechanisms within the business. It identifies areas where management practices can be improved, highlights operational inefficiencies, and provides actionable recommendations to enhance productivity and strategic decision-making.
Management audits are especially useful for organizations looking to strengthen governance, improve performance, and optimize resource allocation. By evaluating the effectiveness of policies, procedures, and management decisions, businesses can proactively address challenges and align operations with their strategic goals.
6. Due Diligence
Due Diligence is a thorough and systematic investigation of a company’s financial, legal, and operational records, usually conducted before mergers, acquisitions, investments, or strategic partnerships. Its main objective is to identify risks, liabilities, and opportunities so that stakeholders can make informed decisions with confidence.
During a due diligence process, our team reviews financial statements, tax compliance, contracts, corporate records, pending litigations, intellectual property, and operational processes. We assess whether the business is accurately represented, highlight any discrepancies or potential risks, and provide actionable insights to management or investors.
Due diligence helps businesses and investors avoid surprises, mitigate risks, and negotiate fair terms. It not only ensures transparency but also strengthens confidence among stakeholders by validating the credibility of information provided.
7. Agreed Upon Procedures
Agreed Upon Procedures (AUP) are specific audit or verification procedures performed on financial or operational information as agreed between the auditor and the client. Unlike statutory or internal audits, AUP engagements do not provide an opinion or assurance; instead, the findings are reported factually and objectively based on the procedures performed.
The scope of an AUP engagement is determined jointly with the client and can cover a wide range of areas such as verification of transactions, reconciliation of accounts, review of compliance with contractual obligations, or testing of specific operational processes. Since the auditor reports only on the procedures performed and their factual results, the responsibility for interpretation and decisions rests with the client or intended users of the report.
8. Certification Services
Certification Services involve issuing verified certificates or attestations that confirm the accuracy of specific financial, operational, or business information. These services are provided by qualified professionals and are often required for statutory, regulatory, or business purposes.
9. Compliance & Special Audits
Compliance & Special Audits are specialized audits designed to ensure that a business adheres to applicable laws, regulations, internal policies, and contractual obligations. These audits go beyond standard financial reviews and focus on specific compliance requirements or operational areas critical to the organization.
A Compliance Audit examines whether the organization is following statutory laws, regulatory frameworks, internal procedures, and corporate governance standards. Special Audits, on the other hand, are conducted for specific objectives. such as bank audits, investor requirements, fund utilization verification, or operational efficiency assessments.
These audits help businesses identify gaps, mitigate risks, and prevent non-compliance, while providing stakeholders with confidence in the company’s processes and governance. They are particularly useful for organizations operating in regulated industries or managing complex operations that require periodic checks.
10. Advisory Support
Advisory Support provides expert guidance to businesses on matters related to audit findings, compliance, risk management, and operational improvements. Unlike traditional audits, advisory services focus on helping management make informed decisions and optimize business processes.
Our advisory services cover areas such as process improvement, internal control strengthening, financial planning, risk mitigation, and regulatory compliance guidance. By analyzing audit results and organizational processes, we provide actionable insights that support strategic decision-making and long-term business growth.
11. Operational Audits
Operational Audits focus on evaluating a company’s business processes, systems, and operations to determine their efficiency, effectiveness, and alignment with organizational goals. Unlike financial audits, which focus primarily on accounting records, operational audits examine how well resources are utilized, how workflows are managed, and whether business objectives are being achieved optimally.
During an operational audit, auditors review processes, procedures, performance metrics, internal controls, and resource allocation. The aim is to identify inefficiencies, bottlenecks, redundancies, or potential risks that could affect productivity or profitability. Recommendations are provided to improve performance, streamline operations, and reduce costs.
Stock or Inventory Audits are specialized audits that verify a company’s physical stock, inventory records, and valuation to ensure accuracy, completeness, and proper control. The primary goal is to confirm that inventory is correctly recorded in the books, properly safeguarded, and accurately valued for financial reporting and operational purposes.
During a stock audit, auditors physically count inventory, reconcile it with accounting records, and examine procedures for receiving, storing, and issuing goods. They also check for discrepancies, obsolete or slow-moving items, and compliance with internal policies. These audits help businesses maintain inventory accuracy, prevent losses, and improve stock management.
13. Project or Fund Audits
Project or Fund Audits are specialized audits conducted to review the utilization of funds, project expenses, and adherence to project guidelines or funding agreements. These audits ensure that funds are used for their intended purpose, and that financial records and supporting documentation are accurate, complete, and compliant with statutory or contractual requirements.
During a project or fund audit, auditors examine budget allocation, expenditure reports, receipts, invoices, and compliance with funding conditions. The audit helps detect discrepancies, misappropriation, or inefficiencies, and provides recommendations to improve financial control and reporting.
