At VKA, over the years, audits have evolved into being the art of converting client requirements into a science with set norms, standard formats, templates, identification of major transaction areas and assigning ratings to these based on samples which are examined closely.
The firm endeavours to understand the client and its business needs before chalking out an audit programme. Standardisation of quality/control tools and measures is a constant endeavour to put the management at ease.
Process flows in an organisation are mapped along with their internal controls etc. as part of an audit, other than checking into routine accounts etc. There are various philosophies followed in any audit depending upon the needs of an organisation. Some of the audit approaches followed is:
At times a mix of the above-said approaches is adopted once transaction areas are identified, based on management requirements.
We understand that the integrity and reputation of a client's management could reflect on the reliability of their accounting records, documents and financial representations and, therefore, on the Firm's reputation.
We undertake statutory audit of Companies, as required by the Companies Act, 1956 and non-corporates. The guiding principal of a statutory audit assignment is to ensure that the financial statements prepared by the management give a true and fair view. We review compliance with accounting procedures, provisions of various law, standards and guidelines in accordance with the Generally Accepted Accounting principles to ensure that financial statements are free of any misstatements, errors and discrepancies.
An internal audit is a vital tool in corporate governance. It provides independent assurance that the key risks facing an organisation have been identified and managed, and that systems and controls are robust and appropriate. The role of internal audit has been widened to embrace the concept of value for money. Although much of the task of internal auditors concerns a rigorous analysis and testing of systems, the benefits can sometimes be greater than enhanced security. By identifying and controlling risks, it is sometimes possible to identify opportunities to reduce costs, increase revenue, and thus to contribute to an organisation’s prosperity, as well as its security.
We begin by ensuring that we understand the client’s existing systems and controls in detail and that they are appropriately documented. Next comes rigorous testing of systems and controls, analysing not only their effectiveness, but also their flexibility. In carrying out these responsibilities we make extensive use of flow chart techniques, often using specialised software, that allow us to show how potential weaknesses in one area could impact upon another.
We conduct Tax Audit as required under the provisions Indian Income Tax Act. This involves reporting on the certain factual details of assesses to the Income Tax Department to enable proper assessment of tax by the Department.
We conduct compliance and secretarial audits which strengthens Corporate Governance in an organisation. Compliance audit assists Audit Committee by providing status of various management as well as regulatory compliances. It also assists in evaluating of the effectiveness of internal control and compliance mechanism within an organisation.
We undertake special investigation audits of the books of accounts for special purposes including detection of fraud, causes of sickness, compliance of terms underlying an agreement. We also undertake special investigations, the scope of which is ordinarily defined by the client.
We assist various International and Domestic clients in obtaining the requisite approvals from various Government agencies. An end to end solution is provided for clients in their entry strategy. We assist in obtaining all requisite approvals from the Registrar of Companies (ROC), Reserve Bank of India (RBI), Software Technology Parks of India (STPI), Foreign Investment Promotion Board (FIPB), Secretariat of Industrial Approvals (SIA), Customs Act, etc.
We have successfully assisted various clients in translating their Indian accounts to accounts as per US GAAP. We use standardised methodology for translation of accounts which we have gathered from our past experiences and in house knowledge base. The standardised process, based on the wealth of our experience and knowledge have been translated into a process and methodology manual.
With the implementation of Goods and Services Tax (GST) from 1st July 2017, there has been a paradigm shift in indirect tax structure in India fro origin based tax to destination based tax. We undertake GST audit as per the provisions of CGST Act, 2017