Audit

Audit is a complete analysis of Financial Statements with an ultimate objective to express an Independent Opinion as to whether it represents a true and fair view financial position of the company or entity. The primary objective is to provide a reasonable assurance that the Financial Statements reveal a clear picture of the company’s finances and at the same time help the management take important steps to improve the growth potential or to rectify the exiting flaws, if any.

Audit Services
In current scenario an audit service is considered not just a formality. It has become a prerequisite for protection and growth of a business. Some of the essential features are early warnings, pragmatic solutions and open communication. Audits consists of checks, controls and assurance, which can be complied statutorily or even be held voluntarily by an organization to assure that the financial statement as a whole are free from material misstatement.
The auditor must invest time to clearly understand the client’s businesses by providing risk focused service, integrating rigorous risk assessment with the various diagnostic processes. The audit testing procedures must be tailored to the as per the nature and requirement of the specific audit. The procedures are designed to identify grey areas or areas requiring special consideration.

Types of Audit in India

The types of audit for purpose of Audit services have been listed below:

External Audit

External audit is referred to the audit firms that offer audit services like assurance services, and tax consultancy services.

Internal Audit

Internal audit an independent consulting service with the objective add value to the business and also to improve the quality organization’s operation. The objective can be achieved by disciplined and systematic evaluation and assessing of entity’s risk management, internal control, and corporate governance.
The audit committee or board of directors that have equal authorization determines the overall scope of Internal Audit. In case there is no audit committee and board of directors, internal audit committee reports to the shareholders of the entity.

Forensic Audit

Forensic Audit is usually performed by a forensic accountant who has expertise in both investigation and accounting. The investigation covers number of areas that includes fraud investigation and insurance claims as well as some type of dispute amongst the shareholders. A forensic audit must also have a proper plan, procedure, and report like any other audit engagements.

Statutory Audit

Statutory Audit refers to an audit of financial statements for specific type of organizations as a result of Statutory obligation imposed by law or local authority. Statutory audit is generally performed by external audit firms and the audit report issued by the auditor is submitted to the Government body of an entity. The common criteria for organizations to audit their financial statements from the financial firms are the annual turnover, number of employees and the value of assets. Companies that are listed on the stock exchange are generally required to audit their financial statements.

Financial Audit

Financial Audit is referred to the audit of an entity’s financial statements by an independent auditor or basically an auditing firm. Financial Audit is performed annually and at the end of the accounting period. This type of audit is also known as financial statement auditing. Sometimes if required financial audit is also done on quarterly basis.
The auditor needs to follow audit standards to conduct financial audit to adopt international standards and requirement of local law.

Tax Audit

Tax Audit is performed by the Government’s tax department or tax authority. A tax audit can be performed as a result of non-compliance of a Government Agency.
Any organization or entity needs to minimize the penalty as a result of the tax audit. The entity must follow the prerequisites set by the tax law in all required areas. For this purpose, they can consult a tax consulting firm for further advice.

Information System Audit or Information Technology Audit (IT Audit)

This type of audit evaluates and checks the reliability of the security system, the information security structure, as well as the integrity of the system so that an individual can rely on the output of the system.
In some cases, financial auditing also requires IT Auditing as with increasing use of technology most of the customer’s financial reports are recorded in some accounting software.

Compliance Audit

Compliance audit checks on the internal policies and procedures of a company as well as law and regulation where the entity is operating. A compliance audit is a part of the system used by the entity’s management for enforcing the effectiveness of the implementation of the government’s law and regulation.

Value for Money Audit

Value for money audit refers to the audit that is performed to assess and evaluate three different factors: Economy, Effectiveness, and Efficiency.
Value for money audit is essential for an entity because it helps procuring as well as improving the efficiency of materials used in different processes.

Review Financial Statements

Review financial statements are a type of negative investigation done by auditors where the auditors review the financial statement and express their opinion regarding the same. This kind of services is generally needed when an entity requires money from the bank.

Agreed Upon Procedures (AUP)

The agreed-upon procedure is a type of negative investigation where the auditors perform their review on the procedures that is agreed with the client. This type of investigation is called limited assurance. Though the procedures are set by the client, the auditors must also ensure that the firm has enough resources for performing the job. An auditor also needs to ensure that there is no conflict of interest between the audit team as well as the client management team.

Integrated Audit

Integrated audit is performed in situations where there is need of two different type of audit. For example, financial audit needs to be done with social audit. An integrated audit is also performed when the entity operates in many different countries and the financial statements are an audited by different audit firms.

Special Audit

A special audit is normally done by an internal auditor. For instance, if there is a fraud committed in a payroll department the audit committee can be requested to conduct special audit.
A special audit is a type of audit assignment that is normally done by an internal auditor. Special audit is performed by the internal staff.

Operational Audit

Operational Audit is an audit service mainly focused on the key processes, systems or procedures as well as the internal control system. The primary objective of operational audit is to improve productivity, efficiency, and effectiveness of the operation.

Process of Conducting Audit Services

The process of conducting Audit services are explained below:

Requesting Financial Documents

After notifying the organization regarding the upcoming audit, the auditor generally requests for the documents listed on the audit preliminary checklist. These documents include a copy of the previous audit report, the original bank statements, receipts, and ledgers. Also, the auditor might request organizational charts, along with copies of board and committee minutes as well as copies of bylaws and standing rules.

Preparing an Audit Plan

The auditor checks all the information mentioned in the documents and accordingly plans out how the audit must be conducted. A risk workshop can also be conducted to look at all the possible issues. An audit plan is then drafted by the auditors.

Scheduling an Open Meeting

Senior management and key administrative staffs are invited to an open meeting during which the scope of the audit is presented by the auditor. A time frame for the audit is determined, and any timing issues such as scheduled vacations are discussed and handled. Department heads may be asked to inform staff of possible interviews with the auditor.

Conducting Onsite Fieldwork

The auditor finalizes the audit plan with the help of all the information gathered from the open meeting. Fieldwork is then conducted by reviewing the procedures and processes as well as communicating to the staff members. The auditor may discuss the problems with the organization giving them an opportunity to respond.

Drafting a Report

The auditor also prepares a report detailing the all findings of the audit. The report consists of mathematical errors, payments authorized but not paid; posting problems and other discrepancies any other audit concerns (if there) must also be listed. The auditor then writes up a summary describing the findings of the audit and also recommends solutions to problems.

Setting Up a Closing Meeting

The auditor asks for a response from the management on the issues mentioned in the report. A description of management’s action plan must be addressed along with the problem and a projected completion date. In the closing meeting, all parties that are involved discuss the report and management responses. If any issues are left out, they must be resolved by this point.

Providing Solutions

As a leading audit firm, we ensure to deliver quality services and solutions to our clients. Our well experienced and certified team is capable of covering all the aspects of audit whether it is internal or external. SGA, assists in:

Preparation of audit strategy and also planning throughout the audit period.

Providing a proper internal/external audit service.

Sharing of knowledge and assistance in training the internal staff for purpose of internal audit (if required).

Quality Assurance

Assessing the key risk areas and providing solutions for the same.

At SGA, we maintain excellent relationships with our clients. We provide a quality led approach to our members and also provide an intelligent, constructive, and challenging audit to all our clients.
You can get the best audit service in SGA This type of audit service requires a proper professional that follow International Standards on auditing or local standards as required by domestic law.

SGA helps our clients in providing Audit Services in following ways:

Execution of audit process in specialized areas and to improve the internal controls,

Identifying the High-risk areas and solutions to remove or pacify such risks.

To set an internal audit system for all the newly established companies.

To provide training to staff on internal audit procedures

Continuous reviewing and monitoring of both the internal and external audit process.

Forensic auditing involves the process of examining, tracking, evaluating, and investing the financial records and matters related to fraudulent activities, commercial disputes, and financial crimes. Usually it is done by external forensic auditors to gather evidence to handle legal issues. Forensic auditing also includes identifying the cause of financial errors, reduction in revenue, and investigates fraudulent activities.

There are many other benefits of forensic audit services that will help your company steer clear of financial crimes like embezzlement and fraudulent activities.

The procedure followed in forensic Audit

A forensic auditor examines every single detail of your financial records and transactions, makes background checks on individuals involved, and determines the credibility of statements and information provided.

Forensic auditing involves the following aspects:

Planning: 

The forensic auditors perform the following activities after planning the forensic audit with the company:

• Identifying the root of the fraudulent activity
• Determining the period over which the fraudulent activity happened
• Identifying the perpetrators
• Quantifying the loss suffered by the company
• Stating measures to prevent similar incidents

Gathering evidence:

The forensic auditors will carry out the following activities to gather evidence to use during the legal proceedings:

• Evaluating and tracking every transaction
• Examining your financial records
• Making background checks
• Determining the credibility of statements provided

Presenting: 

The forensic auditor will prepare an affidavit after double-checking the evidence. He will then present a report that contains the following:

• An affidavit containing the evidence
• Other findings
• Explanation of the fraudulent activity
• Preventive measures

Court proceedings:

The company can use this affidavit and other evidence to carry out legal proceedings.

Benefits of forensic audit services:

Following are the benefits of Forensic Audit Services:

• Outsourcing forensic audits are more cost effective.
• Timely identification of fraudulent activities by conducting a forensic audit can help you to minimize their financial implication them at the early stages.
• Risk of further exploitation of resources can also be reduced.
• You get legal support to handle both internal and external financial crimes and fraudulent activities.
• The forensic auditors resolve both internal and external disputes with transparency and neutrality.
• The forensic auditors are very efficient in tracking illegal activities and in gathering evidence against illicit activities.
• Simplification of litigation is the main benefit of forensic auditing services.
• Periodic forensic audits will help you improve your company’s reputation, as it identifies and eliminates unprofessional behaviour.

Providing Solutions

Our certified Forensic Auditors provide you to a range of service Some of our forensic audit services include:

• Investigating fraudulent activities
• Examining asset misappropriation
• Investigating financial report 
• Overseeing suspicious transactions
• Analysing claims
• Determining tax compliance
• Repudiate bribery and corruption
• Anti-money laundering
• Commercial litigation
• Managing transaction-related disputes
• Quantifying damages before investments

Risk Consultancy is the internal process or methodology we employ with our governance frame work to identify different areas with significantly higher risk and compare them with the predetermined threshold limit to check whether they are comparatively safer or an area of concern for the organisation.

Hence it can be said that risk consultancy is the process that includes assessment, identification, management, and control of potential events or situations to achieve the goals of an organization in a systematic way.

Risk Consultancy Services

Risk Consultancy service is commonly used in financial and accounting practices. The analysis, review, and management of risk creating factors and scenarios are generally termed as risk consultancy or risk management.  There are some corporate firms who provide Risk Consultancy Service to companies to have proper knowledge about the possibility of negative factors that can affect the growth of the company negatively. Some of the services included are:

• Analysing all the new scenarios which can be a risk factor for companies.
• Internal Audits
• Risk Advisory Projects
• Identifying opportunities with regard to improvement
• Compliance reviews
• Provide a clear insight of all the identified risks

Providing positive solutions or advice on the identified risk for the concerned company.

The primary work of the Risk Consultancy Service provider is to analyse and identify the weak points and also provide suggestions regarding the same and if needed must offer solutions too.

Parties are Involved in the Risk Consulting Services

Usually three parties are involved in the Risk Consultancy services. They are:

• Any individual or group that is directly involved with the organization, operation, function, process or other subject matter, and also oversight functions such as compliance, finance, and risk management.
• Any person or group making the assessment-the consultancy provider.
• The beneficiary of the assessment, such as the executive management and the board.

Risk Consultancy Service in an Organization can be provided by the following persons:

Risk Consultancy service providers in an organization may include the following:

• Line employees and management (the management provides assurance as a first line of defence over the risks and controls for which they will be held responsible).
• Internal and External Auditors.
• Senior Management.
• Quality Assurance.
• Environmental Auditors.
• Risk Management.
• Workplace Health and Safety Auditors.
• Review teams with regard to Financial Reporting.
• Workplace Health and Safety Auditors.
• Government Performance Auditors.
• Subcommittees of the board such as audit, credit Governance, Actuarial.
• External Assurance Providers including the survey and specialist reviews in health and safety matters etc.

Framework of Risk and Assurance Services

The Risk Consultancy service provider helps the Board in identifying and planning the course of action for the effective performance of the organization. By using comprehended methods that are specifically designed to identify and rectify major risk attached in each area of operation by implementing smooth internal control.

Types of Risk Consultancy Services

The Risk Consultancy services come in several forms and the basic purpose is to provide the firm pertinent information to ease the decision making. The Types of Risk Consultancy Service is discussed below:

Risk Assessment

In current times organizations are subjected to risks and more precipitous changes in the future. The investors and managers are more concerned regarding the company’s risks and also if they are prepared to handle the risks. The risk assessment service assures that the organization’s risks in the business are comprehensive and also evaluates that the entity has appropriate systems in place to effectively manage those risks.

Business Performance Measurement

Investors and managers require detailed information base than just a financial statement. They need a balanced scorecard. Business Performance measurement evaluates the organization’s performance measurement system and also contains all the relevant and reliable measures to assess the entity’s goals and objectives and also compares its performance with its competitors.

Information Systems Reliability

The employees in an organization as well as the managers are dependent on the information provided to them by the risk and assurance service provider. The data provided must be accurate and the focus must be on systems that rely on the design. This service assesses if an entity’s internal information system provides reliable information for the purpose of operating and making financial decisions.

Electronic Commerce

The growth in electronic commerce has suffered a setback because of a lack of confidence in the systems. This service assures whether the systems and tools used in electronic commerce provide appropriate data integrity, security, reliability, and privacy.

Providing Solutions

The world becomes increasingly complex, unpredictable and inter-connected. To manage and mitigate the risks your business faces you need a strong global partner.

We offer customized risk management solutions and consulting services to understand and quantify the risks your company faces or may face tomorrow. We help you avoid preventable losses and minimize the impacts of events beyond your control.

As a Risk Consultancy service provider is to provide opinion on whether:

• The process-related to risk management is applied properly in the organization and that the sufficient and suitable process has been brought into action.
• The intention and strategic needs of the organization must be kept in mind while framing the risk management policy.
• The system is structured in such a way that all the identified material risks are treated in an early stage.
• There is a cost-effective treatment plans for all the prioritized intolerable risks.
• Controls are designed to check on the outputs of the risk management.
• There is a proper and timely execution of the risk treatment plans.
• Presence of adequate and effective control measures.

And at the same time if required we can provide following services to you as well:

• Analysing all the new scenarios which can be a risk factor for companies.
• Internal Audits
• Risk Advisory Projects
• Identifying opportunities with regard to improvement
• Compliance reviews
• Provide a clear insight of all the identified risks
• Providing positive solutions or advice on the identified risk for the concerned company.