What this covers
The audit of a company's financial statements required by the Companies Act, 2013, resulting in an auditor's report to the members on whether the statements give a true and fair view. It covers the balance sheet, statement of profit and loss, cash flow statement and notes, together with the reporting the Act and its rules require alongside the opinion.
Statutory basis
Sections 139 to 148 of the Companies Act, 2013, read with the Companies (Audit and Auditors) Rules, 2014. Additional reporting under the Companies (Auditor's Report) Order, 2020 — CARO 2020 — and on internal financial controls under section 143(3)(i) where applicable. Conducted under the Standards on Auditing issued by ICAI.
Who it applies to
Every company registered under the Companies Act, whatever its size, including a company with no activity during the year. The scope of the additional CARO and internal-controls reporting depends on the class of company; a small company or a one-person company is outside parts of it.
What we do
- 1Accept the appointment only after checking eligibility under section 141 and communicating with the outgoing auditor.
- 2Agree the scope, timeline and responsibilities in an engagement letter before fieldwork begins.
- 3Understand the entity, its environment and its controls, and plan the audit around where misstatement is actually likely.
- 4Test balances, transactions and disclosures; confirm balances with banks and third parties directly.
- 5Address the CARO 2020 clauses and, where applicable, report on internal financial controls.
- 6Take every proposed modification to the opinion to the board before it is finalised.
- 7Issue the report, and file Form ADT-1 for the appointment where that is outstanding.
What you receive
- Auditor's report
- The signed report to the members, with the CARO annexure where it applies.
- Audited statements
- Financial statements signed and dated for filing with the Registrar.
- Management letter
- Control weaknesses and process observations we found, separately from the opinion.
Documents and information required
Trial balance and draft financial statements · general ledger and bank statements · bank confirmations · fixed-asset register · inventory records and stock counts · statutory dues records — GST, TDS, PF, ESI · loan agreements and sanction letters · minutes of board and general meetings · related-party details · prior-year audited statements and the auditor's report.
Key dates
The audited statements must be laid before the annual general meeting, which for most companies is held within six months of the financial year end. Form AOC-4 follows within thirty days of that meeting and Form MGT-7 within sixty days. We work back from your AGM date and agree the fieldwork window in advance.