Every company is required to appoint a Chartered Accountant as an auditor who has a statutory duty to report each year whether in his opinion the balance sheet shows a true and fair view of the state of affairs on the balance sheet date, and the profit and loss account shows a true and fair view of the profit or loss for the year. It is fundamental to an audit that the auditor must not only be professionally competent but must also be independent. His duty is to examine the accounts and to make an independent report to whoever has appointed him for that purpose. We, after beingappointed as auditors will also provide additional services if you so wish, for example, assisting you to compute or finalize with the assessing officers your taxation liabilities, general accounting, advising on management accounting, giving financial advice and so on. These, however, are separate professional services and are distinct from duties as auditor. The auditing requirements of Company Law apply to every company from the largest giant to the smallest one-man company.
A word about defalcations. It is a popular fallacy to assume that the auditor is there only to make sure that the cashier has not put any money in the wrong pockets. That is a wrong view of the auditor’s function. The auditor will no doubt bring such matters to light in the course of work to facilitate making the report; but our experience may be of great assistance in helping you improve your system, thereby not only making defalcations more difficult but also saving expenses in your accounts department. Nevertheless, the responsibility for the internal control of the company to protect its assets, prevent errors and fraud, and ensure efficient conduct of the business rests with the directors.
Other Audits
Auditing is not confined to only companies; other entities may also have their accounts audited, either because the law requires so or because the promoters wisely decide so.
Where an audit is not governed by statutory requirements, it is important to have a clear understanding with us about the scope of the responsibility required to undertake. The best course is to explain your needs to us, and we will consider what is necessary by way of audit in your particular case; you can then expect us to proceed accordingly.