Sometimes audits are conducted only as an obligation to file statutory compliance like auditing the annual GST return or an annual employee plan benefit report, and at other times it can help with legal and tax-related issues and drive companies out of major tax liabilities, by detecting errors in an entity’s claim through these returns. Audited financial statements are also important when it comes to loan sanctions and insurance approvals.
Any kind of fraudulent activity taking place within the company can also be discovered and taken care of with timely and meticulously performed audits. Apart from all this, audits also evaluate the strengths and weaknesses of the management and help streamline operations and execute action plans efficiently.
Auditing is most certainly an important part of the financial reporting framework that should not be taken lightly. Given the significant benefits of a good financial system, business entities are seeking as the distance of outsourcing part of their financial processes not only to accounting and bookkeeping services firm in Delhi, Mumbai, Bangaluru or bigger metropolitan cities but also to smaller cities with equally good expertise with lower costs to tier two cities like Chandigarh, Ludhiana, Bubhneshwar, etc. Knowing the importance of a robust in the house or outsourced financial records, it is equally important to select and engage with an audit firm that can cater to the size and complexities of the business. Depending on the place of accounting records by a business entity, a qualified team in an accounting and bookkeeping services firm in Delhi, or in any town where the business is located should be able to provide support to the company. With the location advantage, they should be in a position of providing timely and necessary support.
Auditor’s qualifications: Evaluating an auditor’s firm size, expertise, experience in a similar business field, and other similar qualifications are the most critical aspects to consider in the appointment of an auditor. The size of the firm does not guarantee excellence. More important than the size or popularity is the auditor’s qualification, continuing professional education, as well as the specific experience they have in one’s industry – whether it is banking, retail, charity, construction, or manufacturing.
The location of the business and offices of an audit firm also plays a vital role in the selection of a Statutory audit firm. For instance, a North-based business entity, considering the plant locations restricted to North, it could be appropriate to engage a statutory audit firm in Delhi to cut the travel costs
Commitment to quality: Tenacious commitment to delivering quality audits to any client organization is of utmost importance, and this can be demonstrated by chartered accountants and firms continuously updating their knowledge and education. Apart from the professional continuing education programs of the Institute of Chartered Accountants of India, chartered accountants can keep abreast of the knowledge through their memberships in important Audit Quality resource centers. In the new IT world, today it is not important that a statutory audit firm in Delhi has access to the programs only in Delhi. Now with the video conferencing facility and webinars, any professional in any city can have access to global knowledge. It is important to engage with professionals and auditors who can think beyond identifying data errors through hard copies of vouchers and ledgers and also help your organization saving time and cost by using IT and data analytical tools and advice to keep it running smoothly and efficaciously.
Licensing: Licensing and compliance with the latest guidelines are also crucial. The firm of Chartered accountants is required to comply with the latest licensing requirements issued by regulatory bodies. Even regulatory bodies like SEBI require statutory auditing firm o hold a valid certificate under peer review of ICAI or even confirm with the appropriate regulatory authority if the firm in question holds an up-to-date, valid license.
A company listed on the stock exchange cannot appoint Statutory auditing firms unless they have an up to date certificate.