“Audit services in India refer to a range of professional evaluations and examinations of a company’s financial records, operations, and compliance practices to ensure accuracy, transparency, and adherence to regulatory requirements. These services are primarily governed by the Companies Act, 2013, and the auditing standards issued by the Institute of Chartered Accountants of India (ICAI). Audit types include statutory audit, internal audit, tax audit, and compliance audit, among others. Auditors provide an independent assessment that helps stakeholders—such as investors, regulators, and management—make informed decisions and maintain trust in the financial reporting process.”
Audit Services in India
There are various audits mandatory as well as voluntarily in nature is being done by an individual or businesses. Audit services in India can be categorized in the below points:
- Statutory Audits: Those audits which is being done as per any statute i.e. The Income Tax Act, The Companies Act, The Banking Regulations Act etc. is called statutory audit.
- Internal Audit: As per The Companies Act Internal audit is mandatory for certain class of companies however, most of the organization make it as a part of the business because of its significance in assessing the organization day to day activity and preventing and early detection of fraud or error.
- Operational Audit: An operational audit refers to the process of evaluating a company’s operating activities – both on a day-to-day level and a broader scale.
- Tax Audit: Tax audit is an examination or review of accounts of any business or profession carried out by taxpayers from an income tax viewpoint. It makes the process of income computation for filing of return of income easier.
- Compliance Audit: Compliance audit is an assessment as to whether the provisions of the applicable laws, rules and regulations made there under and various orders and instructions issued by the competent authority are being complied with.
- Stock Audit
- Receivable Audit
- Information System Audit
- Due Diligence Audit
- Forensic Audit
- Management Audit and so on