audit

A tax audit is a formal examination of a taxpayer's financial records and tax returns by a government tax authority (such as the Internal Revenue Service in the United States) to ensure accuracy and compliance with tax laws. Audits are conducted to verify that the taxpayer has reported their income and deductions correctly, and to identify any discrepancies or potential tax evasion. If issues are found during the audit, the taxpayer may be required to pay additional taxes, fines, or penaltie..

ICAI releases Revised 2023 Edition of Guidance Note on Tax Audit under Section 44AB of the Income-tax Act, 1961.  The Guidance Note on Tax Audit under Section 44AB of the Income-tax Act, 1961 is a comprehensive document issued by the Institute of Chartered Accountants of India (ICAI) to provide guidance to chartered accountants on the conduct of tax audits under this section. The note covers all aspects of tax audit, from the eligibility criteria for audit to the scope of audit and ..

In an era where educational institutions play a pivotal role in shaping the future of individuals and societies, ensuring transparency, accountability, and quality within these institutions has become more important than ever. As the demand for education continues to rise, so do the expectations of stakeholders – students, parents, regulatory bodies, and the community at large. This necessitates a robust system of checks and balances to guarantee that these institutions operate efficiently..

Clause 44 in Form 3CD under Section 44AB of the Income Tax Act 1961 - Updated FAQs   Sr. No Question Answers 1 Clause 44 reporting viz. GST Details reporting is applicable to whom? It is applicable to all the taxpayers who are required to file tax audit reports in Form 3CA/3CB and 3CD u/s 44AB of the Income Tax Act 1961. It is mandatory to report such information. 2 ..

Introduction Every entity in charge of the business is required to perform an audit everyday, every week, every month, every six months, and every year. The Company must carry out an audit to evaluate its financial stability and to confirm that it is in compliance with all applicable laws, including those related to its annual accounts, risk policy, compliance, and other areas. A company’s first auditor must be chosen within 30 days of incorporation in compliance with section 139 of the..

Reconciling purchases with the purchase register is like putting together a puzzle to make sure all the pieces fit perfectly. Imagine you're keeping track of everything you buy for your business, like supplies and materials. The purchase register is like your shopping list, where you write down what you've bought and how much you spent. Reconciliation is about comparing this list with the actual receipts and bills you get from the store. It's like checking if your memory of what y..

Deloitte has decided to resign as the auditor of Adani Ports & Special Economic Zone Ltd. The decision appears to be linked to concerns over certain transactions highlighted in a report by Hindenburg Research. These transactions raised concerns that Deloitte reportedly did not wish to independently investigate. This development reinforces the concerns over the accounting practices and governance of the Adani Group, as well as the ongoing impact of the allegations made by Hindenburg Research ..

A human resource audit is a comprehensive review and evaluation of an organization's HR policies, practices, and procedures. It helps identify strengths, weaknesses, and areas for improvement in the HR function. Here are the steps to conduct a human resources audit, along with examples:- 1. Define the Scope and Objectives Clearly define the scope and objectives of the audit. Determine the areas and functions of HR that will be assessed, such as recruitment, employee relations, perfo..

Recently, India's accounting watchdog National Financial Reporting Authority's (NFRA) chairperson Ajay Bhushan Pandey at ASSOCHAM's third International Conference on Financial Reporting and Control stated that. "...it is immaterial whether you are expected to find fraud or not, but what is material is you are required to follow the (due) processes. And if you have followed the process and, in that process, you are able to find fraud, it is fine, and even the fraud is not foun..

The Institute of Chartered Accountants of India (ICAI) has released the Exposure Draft Guidance Note on Tax Audit under Section 44AB of the Income-tax Act, 1961 for the Assessment Year 2023-24. The Exposure Draft was released on 22nd July 2023 and the last date for submitting comments is August 6th 2023. The Exposure Draft covers a wide range of topics, including The scope of tax audit under Section 44AB The qualifications of the auditor The procedures to be followed by the auditor ..

Introduction In an era of increasing business complexity and evolving risk landscapes, organizations must have robust internal audit processes in place to ensure effective risk management, governance, and compliance. One approach gaining traction is risk-based internal audit. This proactive and strategic method focuses internal audit activities on the areas of greatest risk to the organization. This article explores the concept of risk-based internal audit, its benefits, and its role in enhan..

Auditing and Assurance Standards Board The Institute of Chartered Accountants of India 11th July, 2023 Exposure Drafts of SQM 1, SQM 2, SA 220(Revised), SA 250(Revised), SA 315(Revised), SA 540(Revised), SRS 4400(Revised)     The Auditing and Assurance Standards Board (AASB) of ICAI has issued the Exposure Drafts of following Engagement and Quality Control Standards for public comments:   S. No. Particulars Link for download 1 ..

What is ERM? ERM, or Enterprise Risk Management, is a systematic approach to identifying and addressing potential events that could pose a risk to an organization's strategic objectives or opportunities for competitive advantage. It is a multidimensional and ongoing process that is primarily managed by the company's board of directors at a senior level and is used to create a culture of risk awareness among employees. Effective risk management is an essential element of strategic mana..

The emergence of Financial Technology providers (fintechs) has revolutionized the way in which financial services are delivered. Fintech firms have leveraged technology to enhance efficiency, convenience, and accessibility. They have been at the forefront of driving innovation in the Indian financial sector. A key area where fintechs have excelled is credit delivery, revolutionizing the customer onboarding and credit disbursement processes with tech-enabled, mobile-friendly platforms that eli..

Just like GoMechanic, Mojocare’s founders also recently admitted that they were misreporting revenue and fudging numbers, under the pressure to inflate GMV after raising $20 Mn in August 2022. Now, as a Financial Due Diligence professional, how does one find out Fictitious Revenue. For the uninitated, Fictitious Revenue is revenue that was booked without actually rendering the services or supplying the goods. This might involve round-tripping of funds via inventory sold to relatives,..

Introduction While internal audit is often associated with large corporations, its significance extends to small and medium-sized enterprises (SMEs) as well. Implementing internal audit practices in SMEs can have numerous benefits, ranging from enhancing financial controls to improving operational efficiency. This article highlights the importance of internal audit specifically tailored for SMEs and how it can contribute to their overall success. Strengthening Financial Controls Interna..

The term "Shared Services" refers to a particular function / service which is generally used by various operating units in an organization. For example, if an organization has various verticals which are considered as profit centers or if they are spread across various geographical areas, the HR service or the IT services may be used by various verticals in an organization. Sharing of services is method to reduce cost because they are centralized back-office operations which may be use..

Professional Development Committee The Institute of Chartered Accountants of India 30th June, 2023 Changing of cut-off date to 1st July instead of 1st January of every year for the Bank Branch Auditors Panel As members are aware, every year PDC prepares a Multipurpose Empanelment Panel of Chartered Accountants/firms spread across the country based on multi layered logic for providing it to RBI and others. The cut-off date for the constitution of the firm and its members is considered as ..

Introduction In today's dynamic business landscape, small and medium-sized enterprises (SMEs) face numerous challenges on their path to success. From limited resources and financial constraints to market volatility and intense competition, SMEs often need expert guidance and support to navigate through these obstacles. This is where advisory services come into play, offering a range of benefits that can make a significant difference in the growth and sustainability of SMEs. Let's expl..

Professional Development Committee The Institute of Chartered Accountants of India 27th June, 2023ANNOUNCEMENT EMPANELMENT APPLICATION FOR THE YEAR 2023-24 HOSTED BY THE O/O C&AG   The Institute is in receipt of various representations with regard to data furnished with O/o C&AG under the head "Audit Experience Details (where turnover/certified expenditure is more than Rs. 40 Crore)". In order to address these Representations, a One-Time Redressal Windo..