Financial Audits
Financial audits are systematic examinations of a company’s financial records, statements, and processes to ensure accuracy, compliance, and transparency. Our Financial Audit services help businesses identify discrepancies, improve internal controls, and maintain credibility with stakeholders while meeting regulatory requirements.
Types of Financial Audits
Financial audits can be classified based on purpose, scope, and regulatory requirements.
Statutory Audit
Mandatory audit conducted as per government regulations to ensure compliance with the Companies Act and other laws.
Internal Audit
Evaluation of internal controls, risk management, and operational efficiency to strengthen business processes.
Tax Audit
Audit specifically focused on verifying tax compliance and reporting as per the Income Tax Act.
Forensic Audit
Investigative audit to detect fraud, financial misconduct, or irregularities within an organization.
Management Audit
Analysis of management practices, decision-making, and overall business performance for strategic improvements.
Operational Audit
Assessment of operational processes to ensure resources are used efficiently and organizational objectives are met.
Why Financial Audits are Important?
Regulatory Compliance
Ensures adherence to laws and statutory requirements, avoiding legal penalties.
Accuracy & Transparency
Provides confidence to stakeholders by validating financial statements.
Fraud Detection & Prevention
Helps identify discrepancies, fraud, or mismanagement early.
Improved Business Decisions
Offers insights for better financial planning, risk management, and operational efficiency.
FAQs
Who needs a financial audit?
Companies, organizations, and entities required by law or stakeholders to ensure accurate financial reporting need financial audits.
What is the difference between internal and statutory audit?
Internal audits are conducted by the company to improve controls, while statutory audits are legally mandated by authorities.
How often should financial audits be conducted?
Statutory audits are annual, while internal and operational audits may be conducted periodically depending on business needs.
Can audits detect fraud?
Yes, forensic and internal audits are specifically designed to detect and prevent fraud or financial irregularities.
What documents are required for a financial audit?
Financial statements, bank statements, invoices, receipts, tax filings, payroll records, and other relevant accounting documents.