Audit Services in India for Statutory,
Tax and Internal Audit Engagements.
A signed audit report is not the same as a rigorous audit. Our statutory audit, tax audit, and internal audit services are conducted with genuine independence, structured methodology, and clear reporting — giving stakeholders and management a reliable view of the financial position and control environment.
Audit and Assurance Services for Companies, LLPs and Growing Businesses
Audit and assurance covers a range of independent examinations — from the statutory audit required by the Companies Act, to tax audits mandated under Section 44AB of the Income Tax Act, to internal audits commissioned by management for process improvement. Each type has a distinct objective, audience, and scope. Our engagement is tailored to the specific audit required, conducted with professional scepticism and structured working papers, and reported with findings that are actionable — not just compliant with the minimum disclosure standard.
What This Audit Page Helps You Compare
This page is written for businesses searching for statutory audit in India, tax audit under section 44AB, internal audit services, stock audit, compliance audit, and independent audit support by a Chartered Accountant firm.
Key Points
- Statutory audit is mandatory for every company under the Companies Act — regardless of turnover or activity level
- Tax audit under Section 44AB applies when the prescribed conditions under the Income Tax Act are met
- CARO reporting requirements apply to most companies and expand the auditor's reporting obligations beyond the main opinion
- Internal audit and statutory audit serve different purposes and different audiences — management vs. shareholders and regulators
- Stock audits are commonly required by lenders as a periodic condition of working capital credit facilities
- Investors and acquirers require audited financial statements as the basis for due diligence, valuation, and deal structuring
Audit & Assurance: Full Scope of Work
Each audit type is distinct in purpose and audience. We conduct all of them with the same standard of rigour and documented independence.
Statutory Audit
A statutory audit is the mandatory independent examination of a company's financial statements under the Companies Act. It involves verification of books of accounts, confirmation of assets and liabilities, compliance with applicable accounting standards (Ind AS or AS), and reporting in the prescribed auditor's report format — including CARO reporting where applicable to the entity.
Tax Audit — Section 44AB
A tax audit under Section 44AB is an examination of books of accounts by a CA to verify income reporting, deductions, and compliance with the Income Tax Act. It results in the prescribed audit report and statement of particulars, which are certified and filed within the applicable due date.
Internal Audit
An internal audit is an independent review of a business's internal controls, processes, financial records, and operational compliance — commissioned by management rather than required by statute. It identifies control weaknesses, revenue leakages, and process gaps, and delivers a practical remediation plan. Internal audits are typically conducted quarterly or half-yearly depending on the business's risk profile.
Stock & Inventory Audit
A stock audit involves physical verification of inventory, reconciliation with book records, and identification of obsolete, slow-moving, or unrecorded items. Lenders typically mandate periodic stock audits as a condition of working capital credit facilities. We conduct the audit, prepare the report in the format specified by the lending institution, and highlight discrepancies with supporting commentary.
Management Audit
A management audit evaluates the effectiveness of management processes, decision-making frameworks, and organisational systems — not just whether accounts are accurate. It is typically commissioned before a funding round, board-level review, or ownership transition. The output is an assessment of whether management structures are functioning as intended, with specific recommendations.
Compliance Audit
A compliance audit is a focused review of adherence to specific regulatory, statutory, or contractual requirements — such as Companies Act secretarial compliance, FEMA provisions for entities with foreign investment, labour law obligations, or grant utilisation terms for NGOs and Section 8 companies. It identifies deviations and supports remediation before regulatory action.
Who Is Required to Get an Audit Done
Some audits are legally mandated; others are driven by lender requirements, investor expectations, or management governance decisions.
Private limited companies
Statutory audit is mandatory under the Companies Act for every company regardless of turnover or operational status
LLPs with higher turnover
Audit is required when an LLP's annual turnover or contribution exceeds the threshold prescribed under the LLP Rules
Businesses above tax audit threshold
Tax audit under Section 44AB becomes mandatory when business turnover or professional receipts cross prescribed limits
Businesses with bank credit facilities
Lenders mandate periodic stock audits and financial reviews as a condition of working capital and term loan renewals
Businesses seeking investment or acquisition
Investors and acquirers require audited financial statements and financial due diligence as the foundation for valuation and deal terms
Trusts, NGOs & Section 8 companies
Audit is required for 80G/12A registration maintenance and for donor and government grant reporting compliance
Our Audit Process: Step by Step
A structured four-stage process designed to deliver a thorough, well-documented audit that minimises disruption to your operations.
Requirement Understanding
We identify the type of audit required, the applicable standards (SA, Ind AS/AS, Income Tax Act, CARO), the relevant period, and any prior audit findings or compliance issues that must be considered from the outset.
Analysis & Audit Planning
We prepare a risk-based audit plan — identifying significant accounts, materiality thresholds, sampling methodology, and a schedule aligned with your statutory filing deadlines and management reporting timelines.
Execution & Documentation
Fieldwork involves vouching, physical verification, external confirmations, and analytical procedures. All audit working papers are maintained in accordance with the applicable Standards on Auditing (SA) issued by ICAI.
Review & Reporting
Audit findings are discussed with management before the final report is issued. Observations include root cause analysis and specific recommendations — not just a list of deviations for the record.
Audit & Assurance in Practice: Real Business Scenarios
How independent audit and assurance provides concrete business value — beyond the compliance requirement.
Startup preparing for investor due diligence
A startup approaching seed investors had three years of unaudited financials with inconsistencies in revenue recognition and related-party disclosures. We conducted the statutory audit for the relevant periods, identified and corrected the accounting inconsistencies, and provided audited statements that formed the basis for the investor's due diligence — preventing costly rework during the deal process.
Manufacturer requiring stock audit for working capital renewal
A manufacturing business needed a stock audit report as a pre-condition for renewal of its working capital credit facility. We conducted physical verification across two warehouse locations, reconciled closing stock against the books, identified slow-moving items not reflected in the previous assessment, and submitted the report in the lender's required format within the specified timeframe.
Service business identifying internal control gaps
A growing services company was experiencing revenue leakages they could not pinpoint from their accounts. Our internal audit identified three specific process weaknesses — in billing approval workflow, expense reimbursement authorisation, and vendor payment controls — and provided a structured remediation plan with assigned ownership and timelines that management implemented over the following quarter.
NGO requiring audit for grant reporting
A charitable trust required audited accounts as part of annual grant reporting to a foreign donor organisation. We conducted the compliance audit, verified that all grant funds were utilised in accordance with the stated project purpose, and issued the auditor's report in the format specified by the donor — enabling the trust to renew its funding agreement within the required submission window.
Key Audit Concepts You Should Know
Clear definitions of the most commonly misunderstood audit and assurance terms.
Definition
What is a Statutory Audit?
A statutory audit is a legally required, independent examination of a company's financial statements carried out by a Chartered Accountant under the Companies Act. Its purpose is to provide shareholders and regulators with an independent opinion on whether the financial statements present a true and fair view of the company's financial position and performance.
Definition
What is a Tax Audit under Section 44AB?
A tax audit under Section 44AB of the Income Tax Act is an examination of the books of accounts of a business or professional by a Chartered Accountant to verify compliance with tax provisions. The auditor certifies the prescribed statement of particulars and audit report, which are filed along with or in connection with the income tax return within the applicable due date.
Definition
What is CARO (Companies Auditor's Report Order)?
CARO is an order under Section 143(11) of the Companies Act requiring auditors to comment on specified operational and compliance matters in addition to the main audit opinion. Applicability depends on the currently effective order and the category of company, including whether any exemptions apply.
Audit & Assurance: Frequently Asked Questions
Direct answers to the most common questions about audit requirements and processes.
Is statutory audit mandatory for all companies?
Yes. Section 139 of the Companies Act requires every company — private limited, OPC, Section 8, or public — to appoint a Chartered Accountant as statutory auditor and have its financial statements audited annually. The requirement applies from the first financial year of incorporation, regardless of whether the company has commenced business, generated revenue, or crossed any particular turnover level. There is no minimum size or activity threshold for companies.
What is a tax audit under Section 44AB and who does it apply to?
A tax audit under Section 44AB requires a Chartered Accountant to audit the books of accounts of a business or profession and certify the prescribed audit report and statement of particulars. It applies when the entity falls within the conditions specified under the Income Tax Act, including certain turnover, receipt, or presumptive taxation situations. The report must be filed within the applicable due date.
What is CARO and does it apply to my company?
CARO (Companies Auditor's Report Order) requires the statutory auditor to comment on a wider set of specified matters such as inventory, statutory dues, loans, internal controls, and other governance-related areas. It applies to many companies, but exemptions depend on the current order and the category or size of the entity.
What is the difference between an internal audit and a statutory audit?
A statutory audit is legally mandated — it provides an independent opinion on whether financial statements show a true and fair view, primarily for shareholders, lenders, and regulators. An internal audit is management-commissioned — it evaluates internal processes, financial controls, operational efficiency, and compliance with internal policies. Both may be conducted by CAs, but they differ fundamentally in their objective, audience, methodology, and reporting output.
How often should an internal audit be conducted?
There is no statutory frequency for internal audit for most entities. The appropriate cycle depends on the business's size, industry, risk profile, and management requirements. For growing SMEs, a half-yearly internal audit is a common starting point. For regulated entities, entities with investor obligations, or businesses with significant cash transactions or inventory, quarterly reviews are more appropriate. The frequency should be revisited as the business grows.
Can the same CA firm handle both the statutory audit and the internal audit?
For most private companies, the Companies Act does not prohibit the same CA firm from conducting both the statutory audit and the internal audit — provided the auditor can maintain professional independence in both roles. However, certain companies with investor requirements or corporate governance policies may require separate firms. We advise on the appropriate structure based on the entity's specific circumstances and applicable independence standards.
Related Services
Audit obligations connect directly to income tax filing, GST compliance, and financial management — and are most effectively managed together.
Income Tax Filing & Advisory
The Form 3CD tax audit report is filed alongside the income tax return. We handle both to ensure the ITR and audit report are fully consistent — discrepancies between the two are a common scrutiny trigger.
GST Registration & Compliance
GST-reported turnover must reconcile with audited statutory accounts through GSTR-9C. We ensure both are consistent to avoid turnover mismatch notices from either the Income Tax or GST department.
Business Advisory & Financial Consulting
Internal audit findings regularly identify areas where financial reporting systems, controls, and MIS need strengthening — our advisory and virtual CFO service addresses those gaps directly.
Need Help with an Audit or Assurance Engagement?
Whether it's a statutory audit with a filing deadline, a tax audit under Section 44AB, an internal review, or a stock audit required by your lender — speak with a CA directly and get it done properly.