Audit Service Provider
The audit services is an independent examination of the financial statements of an organization to ascertain that financial statements provide a true and fair view of the affairs of the company. The audit is based on the historical information of the company and provide positive assurance. The audit services helps to determine the financial position, goodwill, and reputation in the market.
An audit provides the accuracy of tax payer’s return or other transactions. The audit services is used to ascertain the process, procedure and financial records of the company.
The general meaning of an audit is an evaluation of a person, organization, system, process, enterprise, project or product. Auditing is defined as a systematic and independent examination of data, statements, records, operations, and performance of an enterprise.
An audit may be external or internal. The external audit is conducted by an external or statutory auditor who shall independently examine the books, records, documents, financial records of the organization. The external auditor expresses an opinion on the financial statements of the company. Statutory auditors, while performing their duty as an auditor shall comply with auditing standards. The external audit is mandatory for all companies.
The internal auditor is employed by the company for performing the audit. The internal auditor may be an insider or an outsider. Internal audit is applicable to certain types of companies such as.
- Every listed company
- Every unlisted public company whose
- Paid-up share capital is Rs. 50 crore or more. Or
- Turnover is Rs. 200 crore or more. Or
- Outstanding loans or borrowings from banks or public financial institutions exceeding one hundred crore rupees or more at any point of time during the preceding financial year; Or
- outstanding deposits of twenty-five crore rupees or more at any point of time during the preceding financial year; and
Every private company having-
(i) Turnover of two hundred crore rupees or more during the preceding financial year;Or
(ii) Outstanding loans or borrowings from banks or public financial institutions exceeding one hundred crore rupees or more at any point of time during the preceding financial year.
- Mapping and documentation.
- Testing adherence to document the process.
- Measurement of process.
- Identifying key risks in the existing process.
Basic Features to Read before starting private limited company
A private company is required to add the word “Private Limited” or “Pvt. Ltd.” to the end of its name. Private company should have at least two members and two directors. The private company has the right to issue debentures to any number of persons.
Features of Public Limited Company
MCA provides the facility for the incorporation of public limited companies. For incorporation, firstly apply for name through RUN (Reserve Unique Name) on the MCA portal. After the availability of name from ROC we should file incorporation form i.e. Spice 32, INC 33(for eMOA), INC 34(for eAOA), .