Financial Statement Audit
As per many Acts in India, Audit of Financial Statements is one of the most important compliances. A whole outlook of the company and its management, even the valuation depends upon Audited Financial Statements.
Areas covered by us:
- Internal control analysis.
- Reporting weaknesses in the internal controls.
- Suggestion and consulting on transactions of complex nature.
- Drafting Audit policy according to clients’ structure and legal set-up.
- Measuring effect of International and Indian Standards on Auditing.
- Analyzing applicable compliances according to corporate and taxation regulations.
- Appropriate documentation.
- Filings of Financial Statements to various Government offices after audit.
- Assisting Audit committees.
- Updates required from point of view of regulations.
- Advising on IFRS and its applications and International Standards on Auditing.
- IFRS Consultancy and convergence.
Internal Audit
Internal Audit is very important aspect, when we talk of assurance of true picture of state of affairs of an entity. It is checking within the entity. It helps in understanding and assessing risks and evaluates the internal controls and checks. It helps in ensuring optimum utilization of the resources of the entity, as well as timely identification of liabilities including the ones in contingent nature. Internal Audit helps ensuring adequacy of information systems security and controls. Statutorily also certain companies have to have Internal Audit in place.
What we offer you:
- Assessing/ preparing Internal Audit Manual for the organization and Study of control objectives.
- Advising organizational procedures being followed.
- Analyzing Accounting and Audit manual.
- Practicality and viability of existing controls and areas of improvement.
- Assessment of risks and open points.
- Checking the controls instituted within the system.
- Determining controls that are adequate to meet control objectives.
- Working out possible areas of improvement.
- Comparison of written control policies and adherence to same.
- Measuring deviation at test check levels.
- Deciding on degree of control which is adequate depending upon organization to organization.
- Consideration of Fraud in internal audit.
- Internal audit sourcing and outsourcing.
- Assets at risk and their protection.
- Audit of Corporate Governance.
- Evaluation of department for internal controls, if exist
- Legal and situational internal control advisory.
- Process Audits
Process Audit
If the Business processes are not finely drafted and implemented, there can be a high risk of non-compliance and inefficiency, even leading to frauds.
A regular check and a strict compliance on the processes is required to lower down the chances of fraud or break-down. There should be a proper advisory on following the processes. Many a times even the processes are complicated (as seen in IT companies or Heavy Industries) and if those are not explained in the organization properly, can put the working into jeopardy. In certain organizations, the working depends upon proper following of the processes due to statutory calls.
Audit of processes thus becomes important especially in concerns with complicated or legal processes.
We help you by- setting up organizational processes and if processes are already in place, then analyzing them and evaluating them, thus you can expect your organization have end-to-end solution. Our team ensures stringent compliance to pre-set processes of an organization, while it is undergoing the audit. Our team strictly follows a consulting approach which further helps in writing perfectly customized compliance processes for various divisions in the organization.
We undertake Process audit which assesses applicable compliance measures, evaluating gaps if any, suggesting on new processes and providing an improved compliance environment, through:
Where process policy already exists:
- Analysis of policy
- Applying test checks
- Risk mapping
- Finding gaps in following the draft policies
- Writing a report with suggestions
Where processes are yet to be designed:
- Understanding the details of each process
- Writing up the processes with management suggestions
- Sample run of the processes
- Test of the processes applied
- Identifying area of improvement
- Re implementation of improved processes
How IT Process Audit is carried out?
Information Age, this is what we call our present. Without IT process being effectively in place, we can not rest assured that we are doing well and that too without any cyber risks. We have a team that can diagnose IT health of the IT processes that are current being employed by your entity and those which should be applied. We first deeply analyze your business processes and then start to check the IT process to be in line.
Following are the key points while carrying out Process Audits:
- Access and security of risk prone assets like computers and software
- Scrutinizing risk attached with Data Security
- Checking risks with system failure
- Identifying and filling gaps
- Checking Business Continuity Policy
What you gain from this:
- Human error can be substantially lowered as more and more processes will convert to automation
- Adaptable for a multi-country, multi-location and multi-divisions business
- Business messes can be avoided
- Multiple movement of information, which can be unwanted will be ignored
- Existing methods and processes can be improved
- Making your processes law compatible
- Risks related to cyber frauds can be reduced by a good margin
- Checks for each and every process which further becomes unviable, cumbersome and a costly matter, thereby lowering risk and cost
Stock Audit
Stock Audit is an area of specialization and core competence for Walia Walia & Associates. Internal Audit Services are our best because of our unparallel reach and all India network. Assets e.g. Stocks and physical assets such as raw materials are important real assets and need repeat watch. As a large number of companies are operating across the borders through multiple locations, some even with various channel partners, ensuring this watch is challenge. We offer our focused services to companies to keep them assured of their physical assets.
Our special Stock Audit team follows a strict audit and reporting mechanism that strives for best and makes sure that each minute aspect of stocks is evaluated and findings are reported in a transparent manner to levels concerned. Stock audits are also undertaken for banks and other financial institutions which have extended credit to businesses against physical goods and assets. We have big enough network throughout India for quick and simultaneous audits at multiple locations.
We take full care to provide you with comprehensive and most accurate figures of inventories. During this audit, all the records of purchase, sale and movements of stock is taken carefully.
Walia Walia & Associates currently provides three types of Stock Audits:
Physical Conditions Audit | Compliance to Processes & Procedure Audit | Associated Processes & Procedure Audit |
Advitising on best possible way of arranging inventory | Physical count of stock | Audit of Stocks lying at outside locations |
Recognition of inventory and WIP | Comparison of physical and | Use of advanced technology for stock management |
Advising on storage arrangements, | Watch on existence of numerical counts for stock, use of tag sheets | Documentation of stock (through photographs) |
Identification of WIP, including stage | Random checking or Sampling of Inward and Outward stock movement process | |
Disposal/handling of obsolete stock : identification and segregation | Checking of sealed inventories |
Key benefits of Stock Audits:
- Identification of slow moving stock, obsolete stock, dead stock and scrap
- Avoidance of pilferage and fraud
- Instant information of value of inventory
- Cost reduction and bottom-line
- Special arrangements for third party opinion, including for Agent warehouses
- Reduction in gaps in present inventory management process
Advantages:
Stock audit is becoming more important as businesses is becoming multi-location and vendors, dealers, partners becoming a key to the business process. Assets like stock, physical equipments and machinery and even people are located in any of the above premises and a good control mechanism is the need for the smooth running of the business.
Following are the main aspects which are taken care while performing stock audit:
- Reviewing cut-off procedures and scrutinizing the follow up
- Verification of physical stocks
- Verifying stock register
- Reports on Stock pilferage/damage reports
- Comparison of Financial Records with others like stock register
- Reporting on discrepancy
- Valuation and verification of Stock-in-transit
- Verification of Stock valuation
Marketing Communications Audit
Marcom Audit or Marketing Communications Audit is a different and new area in auditing. However not required by any statute, it ensures that each penny spent in marketing is accounted for in terms of real efforts. One may come across a situation when even huge budgets and spends in marketing are not able to attract customers, loopholes may lie in management of campaigns or even be technical like place of displaying or keywords.
Marketing is the prime version of Standing out loud. By comparing what are the actual requirements, we can select our audience and in a phased manner, can effectively improve our marketing to have peak sales. Comparison of what your competitor is doing, and you are not, you can always improve.
Marcom Audit cuts the gap between what needs to be done with what is being done. Certain points that need critical attention while jotting a Marcom Policy:
- Drafting a Public Relations Policy, more professional is more fruitful. It can be a charter of what all methods will be used or adopted in marketing the products or services.
- If we talk about today’s world of clicks, e-marketing counts a lot. Even Optimization can speedily increase the traffic to a good level. Strategies like search Engine Optimization etc. are important and if merged with social networking promotions, it will be really a good mix.
- There should always be an independent check on the marketing expense and whether the same is visible in the market. Many a times entity’s give contracts to marketing agencies and think that they can rest assured that their funds are being used in the manner they thought. Tracking of what marketing agencies suggested to you and what is actual display of your ad can be two different things.
- Finding correct places to market is another important aspect in marketing which can be premium spaces for placing advertisements, so that it attracts large crowds
- Combinations of various strategies like adwords (pay per click), SEO, Out of House marketing forms like placing hoardings etc. can fruitfully result to a better sales graphs. But all these need to be audited as well to find out if there can be even a better mix which can help attain goal.
What we do for you in this:
- Writing an effective Public Relations Charter.
- Advising best keywords.
- Checking by visiting places where marketing is actually being done, like physical count of displays, surprise visits at places where hoardings are displayed etc.
- Help you in analyzing what your competitor is doing and how
- Search option improvements.
- Feedback maintenance.
TDS(Tax Deduction/Withhold) Audit
TDS has become an important compliance for domestic and international withholding taxes. We specialize at consultancy on TDS matters and Withholding Audits. Income Tax provisions belonging to TDS or tax withholding are becoming stringent day by day. Missing or mistaking both can attract considerable penal provisions. To avoid these messes, our pro services on advising and complying with TDS provisions always help you.
Statutory Compliance Audit
We always strive to keep you updated in the Statutory compliances to be met according to the regulations applicable on the entity. You need not take out a separate time on that, we are always here to see that compliance part remains easy for the managers, while we offer an audit of the same also. Specially for certain type of entities that are engaged in activities that are under control of a regulatory body, should always try to meet all compliances as prescribed in that regulation to avoid the risk. Thus in an such type of entities it is compulsory to identify, manage, and control regulatory risks.
Broadly covered areas:
- Assessment of regulations applicable
- Risk estimation and reporting
- Checking all applicable compliances for each such regulation
- Finding end solutions to assure that compliances are met
- Updating about new regulations
- Keeping compliance cost low by avoiding prescribed penalties
- Complying with regulations on financial statements
- Staff education and training about applicable compliances
- Advising in case of regulatory enforcement actions.
Management Audit
The concept of management audit is a new concept. Especially where business is comparatively smaller one, management audit become important in order to explore those mistakes that could have landed the organization into a shut down situation.
Management Audit offers assessment of controls and their effectiveness and relation with existing manner of work. It can be said that they are a vital part of Internal Audit. Management Audit is fruitful in way that these are methods of evaluation within the company and can resuly in bringing the required change.
For checking or auditing any work activity, there are three types of methods associated in this.
Inspection
Inspection is an apparent checking, mostly comparing results with certain given characteristics. These characteristics are usually form, fit and function etc. and after the process, the output is either having those characteristics or it doesn’t. It can not judge on the cause-effect relation but just a black or white answer.
Compliance Auditing
This deals with checking work in deep, comparing results with pre written manuals. It verifies activities performed and activities required. Compliance Audit mostly results in assurance and quality enhancement of procedural works. We undertake registration audits, new vendor regulatory audits etc. for our clients where they need it before entering into big contracts.
Management Auditing
It is a systematic examination of decisions and actions of the management and to analyse the performance. It reviews managerial aspects like organizational objective, policies, procedures, structure, control and system in order to check the efficiency or performance of the management over the activities of the Company. Management Audit stresses on results, evaluates the effectiveness and suitability of controls and challenges underlying rules, procedures and methods.
It assesses methods and policies of an organization’s management in the administration and the use of resources, tactical and strategic planning, and employee and organizational improvement.
Management Audits do not check or appraise individual employee performance, they critically evaluate the senior executives as a management team.