Audit & Assurance Services | M A Ashraf & Co. Chartered Accountants

 

Audit & Assurance Services 

Introduction

Audits play a crucial role in ensuring the reliability, transparency, and accuracy of financial statements. They help stakeholders, including management, investors, and regulatory authorities, gain confidence in a company’s financial information. At M. A. Ashraf & Co., we provide comprehensive Audit and Assurance services tailored to the unique needs of businesses and professionals, ensuring compliance with statutory requirements and professional standards.

Importance of Audit & Assurance

Regular audits and assurance services are essential for:

  • Detecting errors, omissions, or fraud in financial statements

  • Enhancing credibility with investors, banks, and regulatory authorities

  • Ensuring compliance with statutory and legal requirements

  • Strengthening internal controls and business processes

  • Providing insights for strategic decision-making

Professional audits support business governance, regulatory adherence, and long-term financial stability.

Who Needs Audit & Assurance Services?

Our Audit & Assurance services cater to a variety of clients, including:

  • Private and public companies

  • Partnerships and LLPs

  • Startups and SMEs

  • Professionals and trusts

We tailor our services according to the size, industry, and statutory obligations of each client, ensuring compliance without overburdening operations.

Types of Audits We Offer

Statutory Audit

A statutory audit is a legally mandated review of financial statements in accordance with applicable laws and accounting standards. Our services include:

  • Examination of books of accounts and financial statements

  • Verification of compliance with regulatory requirements

  • Preparation of the auditor’s report with objective observations

  • Assistance in addressing audit queries and suggestions

Internal Audit

Internal audits assess the effectiveness of a company’s internal controls, risk management, and operational efficiency. Our services include:

  • Reviewing operational processes and internal controls

  • Identifying areas of risk and inefficiency

  • Suggesting improvements for financial and operational processes

  • Periodic reporting to management for informed decision-making

Due Diligence Audit

Due diligence audits are conducted to evaluate the financial and operational position of a company before investments, mergers, or acquisitions. Our services include:

  • Detailed assessment of financial statements, contracts, and liabilities

  • Verification of compliance with statutory obligations

  • Identification of potential risks and exposures

  • Preparation of comprehensive due diligence reports

Tax Audit as per Income Tax Act

Tax audits are mandated under the Income Tax Act for specified taxpayers to ensure correct computation of taxable income. Our services include:

  • Reviewing books of accounts for tax compliance

  • Verifying deductions, exemptions, and taxable income

  • Preparing Tax Audit Reports in accordance with section 44AB

  • Assistance during assessments or tax authority queries

Tax Audit Limits (Thresholds) under Section 44AB

Under Section 44AB of the Income Tax Act, certain taxpayers are required to get their accounts audited by a Chartered Accountant if their turnover or gross receipts exceed specified thresholds. The thresholds are as follows (FY 2025–26 / AY 2026–27 for reference):

Type of TaxpayerTurnover / Gross Receipts ThresholdAudit Requirement
Business (other than presumptive taxation)₹1 croreMandatory Tax Audit
Business under presumptive taxation scheme (Sec 44AD)₹2 croreExempt if opted for presumptive scheme and income declared is within limits
Profession (other than presumptive taxation)₹50 lakhMandatory Tax Audit
Profession under presumptive taxation scheme (Sec 44ADA)₹50 lakhExempt if opted for presumptive scheme and income declared is within limits

Key Points:

  • Tax audit must be conducted by a qualified Chartered Accountant.

  • Due date for filing Tax Audit Report (Form 3CD + ITR) is 30th September of the assessment year.

  • Non-compliance may attract penalties under Section 271B, typically 0.5% of turnover.

  • Even if the taxpayer is exempt under presumptive taxation, voluntary audits may be conducted for transparency or lender requirements.

Professional Advice:
We assist clients in determining whether they fall under the Tax Audit requirement, prepare the audit report accurately, and ensure timely filing to avoid penalties.

Common Challenges in Audit & Assurance

Businesses often face challenges such as:

  • Maintaining accurate and updated records

  • Identifying and rectifying discrepancies before statutory audits

  • Ensuring compliance with complex regulations

  • Understanding audit recommendations and implementing them effectively

We help clients navigate these challenges efficiently and professionally.

Our Approach

We follow a structured approach to Audit & Assurance:

  1. Understanding the business, industry, and regulatory environment

  2. Planning audits with a risk-based approach

  3. Conducting fieldwork and reviewing financial statements

  4. Preparing audit reports and management letters

  5. Advising on improvements in controls and compliance practices

Our approach ensures accuracy, compliance, and actionable insights.

Scope of Services

  • Statutory Audit

  • Internal Audit

  • Due Diligence Audit

  • Tax Audit as per Income Tax Act

  • Compliance advisory and review of financial statements

  • Reporting with insights for management and regulatory authorities

Disclaimer: The information provided is for general guidance only and should not be considered professional advice. Specific matters must be discussed based on individual circumstances.


M A Ashraf & Co. – Chartered Accountants
Specialising in GST, Income Tax, and Startup Advisory
📍 Serving PAN India | 💼 camdayazashraf.blogspot.com

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