Assurance, Audit & Attestation
Assurance, Audit & Attestation
We provide comprehensive audit and assurance services to strengthen financial integrity and transparency in your organization. As a CA firm with over 14+ years of providing statutory and internal audit services, we approach every audit with a high standard of professionalism and integrity, while also working with our clients to improve their internal controls and governance. MN & Co.’s experienced professionals analyze the events behind the numbers, provide insight into the organization and make meaningful recommendations for improvement of business processes and compliances.
Assurance Services include a wide range of engagements aimed at improving the quality and reliability of information used for decision-making.
Audit involves an in-depth examination of financial statements to ensure they accurately represent a company's financial position and comply with relevant accounting standards.
Attestation services provide assurance on specific subject matters like internal controls or compliance, ensuring they meet established criteria.
Different types of audit and assurance services we provide include -
Statutory Audits for Indian GAAP
A Statutory Audit is a mandatory examination of a company’s financial records to ensure compliance with the Indian Generally Accepted Accounting Principles (Indian GAAP) and applicable regulatory frameworks. It is required under the Companies Act, 2013, and is performed by qualified Chartered Accountants (CAs).
Our Objective:
1. Accuracy and Fairness: To verify that the financial statements present a true and fair view of the company’s financial position.
2. Compliance: To ensure that the organization adheres to Indian accounting standards, tax laws, and other applicable legal requirements.
3. Fraud Prevention: To detect and report any irregularities, misstatements, or fraudulent activities in financial reporting.
MN & Co. has years of experience providing audit and assurance services under various statutes and across diverse industries. These audit and assurance services include:
1. Companies registered under the Companies Act, 2013 (private, public, or listed companies).
2. Businesses exceeding the prescribed turnover or revenue threshold under Indian laws.
3. Banks, insurance companies, and other entities governed by regulatory bodies like the RBI, SEBI, or IRDAI.
4. Audit of Power Companies under the Electricity Act;
5. Audit of stockbroking entities under the Securities Contracts (Regulation) Act, 1956;
6. Audit of large business entities (corporate and non-corporate) under the Income Tax Act, 1961;
7. Audit of business entities under the GST laws;
8. Audits required under exchange control regulations (liaison offices, site offices and branch offices of foreign companies);
9. Audit of Non-Banking Financial Companies under the Rese rve Bank of India (Non-Banking Financial Companies) Regulations;
10. Audit of non-profit organizations (charitable organizations) under the Maharashtra; Public Trusts Act, 1950 and under the Foreign Contribution (Regulation) Act and under the Income Tax Act 1961;
11. General Purpose audit of financial statements under IFRS;
12. Audit under the LLP Act;
13. Audit and certification under RERA Acts.
Control & Risk Advisory
An Internal/Risk Audit is a detailed evaluation of an organization’s internal processes, systems, and controls to identify risks, improve operational efficiency, and ensure compliance with policies and regulations. This type of audit focuses on assessing and mitigating risks across various functional areas of the business.
Our Objective:
1. Risk Identification: Identify potential risks (operational, financial, regulatory, etc.) that could impact the organization’s performance or reputation.
2. Process Improvement: Evaluate and improve internal controls, systems, and processes for better efficiency and accountability.
3. Fraud Prevention: Detect and prevent fraud, errors, and inefficiencies within the organization.
4. Compliance: Ensure adherence to internal policies, industry standards, and legal regulations.
Internal audits typically cover all key business functions, including:
1. Sales and Marketing: Analyzing revenue processes, pricing strategies, and customer relationships.
2. Purchases and Procurement: Reviewing supplier contracts, inventory management, and procurement practices.
3. Human Resources: Ensuring compliance with labor laws, payroll accuracy, and employee performance management.
4. Finance: Assessing financial controls, cash flow management, and budget adherence.
5. Technology and IT Systems: Evaluating the security, efficiency, and reliability of technology infrastructure.
6. Operations: Examining workflows, resource utilization, and operational bottlenecks.
Concurrent Audits
A Concurrent Audit is a real-time examination of financial transactions and business operations as they occur. Unlike traditional audits, which are conducted after a certain period, concurrent audits are performed simultaneously with the day-to-day activities of the organization. This approach helps identify and rectify errors, irregularities, or deviations promptly.
Our Objective:
1. Timely Detection of Errors: Identify discrepancies, errors, or non-compliance during real-time operations.
2. Compliance Monitoring: Ensure continuous adherence to regulatory guidelines, company policies, and industry standards.
3. Fraud Prevention: Minimize the risk of fraudulent activities through immediate scrutiny.
The audit typically covers areas such as:
1. Transaction Monitoring: Checking the accuracy of transactions (e.g., loan approvals, payments, or sales) as they happen.
2. Policy Adherence: Verifying that processes align with organizational policies and regulatory requirements.
3. Risk Assessment: Identifying risks in operations, such as credit risk, operational risk, or market risk.
4. Fraud Detection: Detecting any unusual patterns or transactions that could indicate fraud.
5. System Reviews: Assessing the effectiveness of automated systems and controls.
Special Audits/Investigations
A Special Audit or Investigation is a targeted review of specific aspects of an organization’s financial or operational activities, typically carried out to address concerns such as fraud, mismanagement, or compliance violations. Unlike routine audits, these are initiated for a specific purpose and focus on particular transactions, departments, or issues.
Our Objective:
1. Fraud Detection and Prevention: Identify instances of fraud, embezzlement, or financial irregularities.
2. Compliance Verification: Ensure adherence to specific laws, regulations, or contractual agreements.
3. Uncover Mismanagement: Highlight inefficiencies, policy violations, or misuse of resources.
4. Focused Insights: Provide detailed analysis and recommendations regarding the investigated issue.
Special audits/investigations are typically required in situations such as:
1. Suspicion of fraud or financial misstatements.
2. Allegations of misconduct or non-compliance within the organization.
3. Disputes among stakeholders requiring detailed financial reviews.
4. Regulatory or statutory requirements demanding an in-depth audit.
We as auditors generally focus on specific areas such as:
1. Fraudulent Activities: Investigating discrepancies in accounts, theft, or fraudulent transactions.
2. Contractual Compliance: Ensuring terms of agreements with vendors, partners, or clients are followed.
3 .Operational Irregularities: Reviewing deviations in operational processes or resource utilization.
4. Financial Mismanagement: Analyzing misallocation or misuse of funds or assets.
5. Specific Events or Periods: Auditing transactions or activities during a particular timeframe.
Tax Audits
A Tax Audit is a mandatory examination of an organization’s financial records to ensure accurate reporting of income and compliance with the provisions of the Income Tax Act, 1961. Conducted by a Chartered Accountant (CA), it verifies whether taxpayers have correctly declared their taxable income, maintained proper records, and fulfilled tax obligations.
1. Compliance Assurance: Ensure adherence to the provisions of the Income Tax Act and relevant rules.
2. Accurate Tax Reporting: Verify that income, expenses, and deductions are accurately reported in tax filings.
3. Fraud Prevention: Identify discrepancies or manipulations in financial records that may result in tax evasion.
4. Transparency: Promote clarity and trustworthiness in the organization’s financial and tax-related matters.
Under tax audit we generally undertake,
1. Verification of Books of Accounts: Ensures that financial records are maintained as per statutory requirements.
2. Review of Income and Expenses: Examines income streams and expenses to confirm they are valid and allowable under tax laws.
3. Reporting of Deductions: Checks compliance with deductions under various sections of the Income Tax Act.
4. Documentation Review: Verifies compliance with TDS (Tax Deducted at Source) provisions and GST (Goods and Services Tax), if applicable.
5. Filing of Tax Audit Report Prepares and files Form 3CA/3CB and 3CD with the Income Tax Department.
IFRS/US GAAP Reviews
IFRS (International Financial Reporting Standards) and US GAAP (Generally Accepted Accounting Principles) are globally recognized frameworks for preparing financial statements. An IFRS/US GAAP Review ensures that a company’s financial statements comply with these standards, providing clarity and consistency in financial reporting for global stakeholders.
Our Objective:
1. Global Compliance:
Ensure alignment with international or US-specific accounting standards.
2. Accuracy in Reporting:
Validate that financial statements reflect the true financial position and performance.
3. Facilitate Global Transactions:
Prepare financial statements suitable for international investors, mergers, or cross-border operations.
4. Risk Management:
Identify and address discrepancies between local GAAP and IFRS/US GAAP requirements.
requirements.
MN & Co. advises and assists all its multi-national clients on various aspects of the financial statements under different GAAP. Our services include:
1. Advising and assisting in conversion of Indian GAAP compliant accounts to IFRS or US GAAP;
2. Reconciliation of Indian GAAP compliant accounts with accounts under IFRS or US GAAP;
3. Advising clients on Foreign Group reporting pack of accounting data and assisting them in complying with requirements from global auditors;
4. Conducting customized training workshops for client’s employees to enable them to build in-house capabilities in understanding the intricacies under IFRS.
Stock Audits
A Stock Audit is a detailed examination and verification of an organization’s inventory to ensure the accuracy of stock records and the actual physical stock on hand. The audit process helps to identify discrepancies, evaluate stock management practices, and ensure that the inventory is accurately recorded in financial statements.
Our Objective:
1. Inventory Accuracy:
Ensure the physical stock matches the recorded quantities and values in the books.
2. Prevent Loss or Theft:
Detect and address issues related to stock loss, theft, or mismanagement.
3. Process Improvement:
Evaluate and improve inventory management processes and controls.
4. Compliance and Reporting: Ensure compliance with regulatory requirements for stock reporting and valuations.
Stock audits are commonly carried out by:
1. Manufacturers to verify raw materials, work-in-progress, and finished goods.
2. Retailers and Wholesalers to check their product stock levels and identify any discrepancies.
3. Businesses with large inventory systems that require accurate and reliable stock management for financial reporting.
4. Banks and financial institutions to assess collateral value for loans or credit facilities.
FAQ’s
An audit ensures financial statements are accurate, reliable, and comply with legal and regulatory requirements. It helps businesses maintain transparency and build trust with stakeholders.
We offer statutory audits, tax audits, internal audits, forensic audits, stock audits, and due diligence reviews.
Audit requirements depend on business size, turnover, and regulatory requirements. For instance, companies under the Companies Act, 2013, must conduct statutory audits annually.
The duration depends on the complexity of the financials and the scope of the audit. Typically, it ranges from a few weeks to a couple of months.
We ensure businesses comply with financial regulations, prepare accurate reports, and provide risk mitigation strategies to strengthen internal controls.