Audit & Assurance
Statutory Audits, Tax Audits & Independent Financial Assurance.
Statutory Audits under Companies Act 2013, Tax Audits under Section 44AB, and Internal Financial Controls (IFC) delivering complete statutory compliance.
Under Indian law, audits are mandatory statutory verifications conducted by practicing Chartered Accountants. Under Section 44AB of the Income-tax Act, businesses exceeding ₹1 Crore (or ₹10 Crores if cash transactions are ≤5%) and professionals with gross receipts over ₹50 Lakhs (or ₹75 Lakhs under presumptive scheme) must file Tax Audit Form 3CD by September 30. Companies incorporated under the Companies Act 2013 must conduct annual statutory financial statement audits.
✦ Practice Scope & Regulatory Overview
Statutory audit and assurance is not merely a legal checkbox—it is a vital mechanism to substantiate corporate transparency, strengthen internal control frameworks, and establish institutional credibility with banks, venture funds, tax authorities, and shareholders.
Our practice executes comprehensive audit engagements adhering strictly to ICAI Standards on Auditing (SAs) and the Companies (Auditor's Report) Order (CARO 2020). We conduct Statutory Financial Statement Audits under the Companies Act 2013, Direct Tax Audits under Section 44AB (including Form 3CA/3CB and Form 3CD), Internal Audits, Stock & Inventory Physical Verifications, and Financial Due Diligence for M&A and private equity funding.
Our risk-based audit methodology detects transactional leakage, evaluates Internal Financial Controls over Financial Reporting (IFC-FR), ensures compliance with applicable Indian Accounting Standards (Ind AS / AS), and identifies operational efficiencies to protect enterprise capital.
Key Deliverables & Scope of Work
Documents Required Checklist
Statutory PreparationStep-by-Step Execution Methodology
Audit Planning & Risk Assessment
Understanding client entity operations, accounting frameworks, defining materiality limits, and assessing control risks.
Substantive Ledger Testing & Sampling
Detailed voucher verification, sampling purchases/sales, validating statutory TDS/GST payments, and checking bank transactions.
Internal Controls & Clause 3CD Drafting
Assessing Internal Financial Controls (IFC), cross-reconciling turnover with GST returns, and preparing clause-by-clause Form 3CD.
Independent Report & MCA/ITD Submission
Issuing the Independent Auditor’s Report, signing Form 3CA/3CB online via Digital Signature (DSC), and filing on e-portal.
Frequently Asked Questions (FAQs)
Statutory & Practice GuidanceWhat is the turnover threshold for mandatory Tax Audit under Section 44AB?
For businesses, a Tax Audit under Section 44AB is mandatory if gross turnover exceeds ₹1 Crore in the financial year. However, if aggregate cash receipts and cash payments do not exceed 5% of total transactions, the threshold is relaxed to ₹10 Crores. For professionals, audit is mandatory if gross receipts exceed ₹50 Lakhs (or ₹75 Lakhs where cash receipts are ≤5%).
What is the penalty for not getting accounts audited under Section 44AB?
Under Section 271B of the Income-tax Act, failure to get accounts audited or failure to submit the audit report before the statutory deadline attracts a penalty of 0.5% of total sales, turnover, or gross receipts, up to a maximum penalty of ₹1,50,000.
What is the difference between Form 3CA and Form 3CB in a Tax Audit?
Form 3CA is used when the taxpayer is already required to get their accounts audited under any other law (such as a Private Limited Company audited under the Companies Act 2013). Form 3CB is used for taxpayers whose accounts are not mandated to be audited under any other statute (such as proprietorships or partnership firms audited solely under the Income-tax Act).
What is the statutory deadline for completing and filing a Tax Audit Report?
The statutory deadline for filing the Tax Audit Report (Form 3CA/3CB and Form 3CD) on the Income Tax e-filing portal is September 30 of the relevant assessment year (or October 31 for transfer pricing cases).
Is a Statutory Audit mandatory for all Private Limited Companies?
Yes. Under Section 139 of the Companies Act 2013, every Private Limited Company, One Person Company (OPC), and Public Company must appoint an independent statutory auditor and get their annual financial statements audited, irrespective of their turnover or capital size.
What role does Internal Audit play before a Statutory Audit?
An Internal Audit provides ongoing operational and financial scrutiny, identifying transaction gaps, inventory leakages, and non-compliances ahead of time so that the statutory audit is completed smoothly without adverse auditor qualifications or disclaimers.