Positive Reviews – Auditors in India
Audits make the financial world function, as 3E Accounting explains in this mini guide to auditors in India.
An audit occurs when an accredited auditor inspects and evaluates accounts kept – either in books or digital format. These will be tallied with physical records or inventory. Audits are done to ensure the accuracy and transparency of financial statements to avoid fraudulent practices. Some of the top auditors in India include global accounting firms such as Deloitte, KPMG, and Ernst & Young, as well as local firms such as R. Arora & Associates, etc.
The World of Chartered Accountancy
Chartered accountancy is one of the most popular degrees in India. Top auditors have the potential to earn up to Rs 20 lakhs. The Institute of Chartered Accountants of India (ICAI) regulates India’s accounting profession by virtue of the Chartered Accounting Act 1949. As per the Act, only chartered accountants who are members of ICAI can do independent audits of any organization. As of 2019, ICAI has more than a quarter-million members.
Auditors must also have a Certificate of Practice from ICAI in order to conduct statutory financial audits. These audits are governed by the Indian Accounting Standards (Ind-AS) and are based on laws applicable to the entity being audited.
Auditors must be registered with ISO 9000 and can be:
- Internal Auditors: accountants attached to a company’s accounting department
- External Auditors: come from outside the firm and will cross-check all financial statements independently
There are many types of audits which can be done and include:
- Internal and Management Audit
- Statutory Audit
- Cost Audit
- Secretarial Audit
- Tax Audits
- Bank Audit
- System Audit
The auditing process starts with a formal definition of the auditor’s role and terms of engagement. It will usually extend to planning a timeframe and general statement of work. All financial statements, including cash flows, are then compiled and provided to the auditor for auditing.
Auditors in India will verify a firm’s financial statements and issue an Opinion. By law, all public listed companies must get an audit and Opinion by independent auditors. Shareholders, investors, and directors rely on these to assess performance outcomes, transparency, and investment opportunities. Opinions can be one of the following types:
- Disclaimer of Opinion is issued when the auditor is unable to provide an opinion.
- Qualified Opining is issued when the auditor doubts a fair representation of accounts or compliance with GAAP.
- Unqualified Opinion is issued when the auditor is satisfied that an accurate and fair representation is given in accordance with accounting principles.
- Adverse Opinion is issued when the financial statements are not a fair and accurate representation of the financial facts.
Working With Industry Leaders
3E Accounting offers impeccable and top-notch auditing and accounting services for companies that are looking for auditors in India. Employing industry-standard best practices, 3E Accounting provides professional service par excellence when it comes to accounting and other business solutions.
Contact 3E Accounting today to access a suite of solutions that can be customized to your business needs.