Forensic Auditing

Forensic Auditing involves conducting examination and evaluation of a firm’s or individual’s financial information and legalities for determining whether any fraud or negligence has taken place and if yes, to use the evidence collected during such Audit in the court of law.
Objective
The objective of FORENSIC AUDIT is to find the audit evidences which are legally tenable and in doing so the Corporate veil of the company can be disregarded.
Following points are considered

• Any Fraud or negligence took place?
• Is the effect material?
• Who are the responsible people?
• How much can be recovered?

Skills Required (Chartered accountant in India)
Following skills are required for an efficient and fruitful Forensic Audit

• Deep Knowledge of Accounting
• Proper Understanding of Auditing
• Required traits of Investigating
• Obvious should be distrusted
• Think differently and Develop an open mind

Critical Point Auditing
Purpose of critical point auditing is screening out the fraud or false transactions and events from the normal ones.
An analysis and evaluation of financial statements, books and records are conducted to find out :

• False credit to increase sales and corresponding debit entries.
• Inadequacies in Internal Control System of the organization.
• Cross debits and credits and inter account transfers

Propriety Audit
Main purpose of Propriety Audit is to determine the genuinity of the transactions in Government Account.
It means whether entire expenditure sanctioned by the government is actually required and need based and whether all the incomes arising on account of that are fairly and timely credited to the government account.
It aims at determining the Value for money, whether the economy and efficiency has been achieved in the transaction and unwanted, wasteful and unnecessary expenses have been ignored.
If anything objectionable or any fraudulent intension is recognized then people and organizations suspected to be behind that are questioned.
Case Studies
Based on Balance Sheet as on 30th June, 2002,showing erosion in net worth, Vivita Ltd. filed a reference U/S 15(1) of Sick Industrial Companies (Special Provisions) Act, 1985. Secured creditors objected on the grounds, amongst others, that:
(a) Requisite number of directors did not attend the meeting of Board of Directors of the company held to decide on reference to BIFR.
(b) Company indulged in the following:-

• Gave a huge discount of Rs.6.48 crore without any explanation/justification.
• Company devalued its investments by 90% without explaining reasons for such a devaluation.
• Company had written off R s. 3.97 crore on account of foreign exchange fluctuations
• Addition to gross block included Rs.26 lakhs as land development expenses, actually not incurred, as per inspection carried out by banks.
• Depreciation increased by Rs.1.84 crore despite a fall in fixed assets

BIFR observed that the group companies (to which Vivita belonged) referred to BIFR, though engaged in different activities, adopted the pattern of reporting huge losses on slight fall in sales. Marginal fall in the sales and huge losses accompanied with large discounts in a single financial year was common to all the companies.
Vivita’s Explanation/representation and decision of BIFR

• Vivita stated huge discounts were offered to liquidate stock, as it feared trademark infringement proceedings by another company. BIFR did not accept this as sufficient evidence was not made available and hence heavy increase in discounts and losses were not allowed
• Devaluation of investments not admitted as Vivita Ltd failed to submit copy of B.O.D. resolution to ascertain whether it was long-term or short-term investment
• Explanation of Vivita Ltd as for increase in depreciation was acceptable
• Considering the market practice in the industry of taking advance from buyers and passing the same to the suppliers, BIFR noted that selling prices and the procurement prices are fixed in advance. BIFR set aside Vivita Ltd’s contention of losses in trading activities and ruled that losses of the company were overstated by Rs. 34.61 crore on account of increase in raw material consumption.
• As to increase in loans, details were not available, but in case of unsecured loans, BIFR observed that Vivita Ltd. had given preferential treatment in the payment of unsecured loans at the cost of secured loans.
• Regarding loss of Rs.40 crore on a marginal fall in the sales, Vivita has not submitted any explanation

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Auditing Services in India

Role of an auditor plays while doing auditing is important to acknowledgre, as audit is not only a statutory obligation. Auditing is all about evaluating and reviewing the effectiveness of a company's internal controls/policies and its operational programmes. Business scenario is to achieve objectives not only thinking of profitability but to maintain an effective system of internal controls.

Now again we have to decide, what will do best for auditing and who can be responsible, accountable to give reliable financial reporting of operations, can prevent fraud and misappropriation of assets. Certified audit firms in India do this job in organised way and contribute to a company's audit system. Both internal and independent auditors plays a important role in feeding company’s growth by showing true and fair financial picture of company.

Certified Internal Auditors(CIA) in India always put an effort to structure an effective audit system. This system facilitates corporate to detect irregular transactions, also it can supervise, monitor and promote operational productivity. Audit system by Internal auditor can maintain proper internal control through which organization can follow and attain corporate objectives. Certified Internal Auditors in India allows to assess the risk of material misstatement in a company's financial reports. Keeping check on company’s operations and even internal control checks can detect different types of fraud and other accounting irregularities. India Certified Audit Firms, allows us to design the internal controls so that any material irregularities can be detected easily in any circumstances. Without this system of internal controls, it is difficult for a company to create reliable financial reports for internal/external purposes. Thus, to determine or to allocate resources and to know which segment and product line of the corporate is making profit/losses, it is necessary to to have an effective and efficient Internal Control System.

Additionally, a good internal audit control check also can manage affairs of the business by letting them know the exact status of its assets and liabilities. Accordingly, an effective audit control by certified internal auditor of certified audit firm in India always helps to prevent debilitating misstatements in a company's records and reports. Strong and a well balance audit systems can help in reducing various types of risk like risk of misstatements in financial statements,information manipulation, misappropriation of assets and other related type of risks.

A Certified Auditor’s responsibility is to cross check all the material items and also to evaluate regulatory compliance, maintain two way communication between audit team and management, to provide recommendations for controlling deficiencies in organization operations, providing assurance for good corporate governance and help staff to understand the risk associated with non compliance.

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Need of Payroll Management

Payroll Preparation is really important and critical tasks for any business/company as it includes the calculation of the employee’s salary alongside withheld taxes as it involves entry of the minor details and a little mistake can be dangerous. Due to this, the businesses are looking the best Payroll Management Company so that they can take responsibilities for preparing the payroll.
We have a efficient team which provides the complete service of payroll management to the business and due to their expertise in the field; we can be the best possible solution for the task.

Need for the Payroll Management in India?
The basic needs of preparing a payroll as it is really important because every company needs to pay their employee every month and for this, they need to prepare the payroll also in every month.

Basic neccesities of Payroll
A Certified Auditor’s responsibility is to cross check all the material items and also to evaluate regulatory compliance, maintain two way communication between audit team and management, to provide recommendations for controlling deficiencies in organization operations, providing assurance for good corporate governance and help staff to understand the risk associated with non compliance.

A payroll includes database regarding the pay package of the each individual employee working in company.
It will also include the number of days the employee was present for work.
1. Overtime Done
2. Calculation of leave and absenteeism.
3. Calculation of PF/ESI along with withheld task and others.
4. Considering all these factors, the salary of the individual employee is calculated and paid.

Small error in the data,lead to different kind of consequences like delay in payment,incorrect calculation of withheld taxes and others, incorrect calculation of salary. This is why payroll management company's service can be considered as the boon for Small Medium Business(SMB).
Our online payroll services offers the expertise service of payroll tax consultant along with the precise preparation of the payroll and that is also with complete responsibility and guarantee.

Our expert team of the payroll tax consultant provides the simplest and best possible solutions for the needs of SMB's for the easy and timely processing of the salary and income tax return.Company can focus on other things rather than Payroll which will automatically help Company's business.

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Statutory Audit and Tax Audit

Audit means an examination of books of accounts, statutory records, documents and vouchers conducted with the purpose of establishing the fact that the accounting records presents a true and fair view of the Organization.  It is conducted by a party which is independent of that organization.

There are various kinds of audit being conducted under different laws such as statutory audit, internal audit, cost audit, stock audit etc.



Two of the important kinds of Audit which often create confusion among Business owners are Statutory Audit and Tax Audit.

A statutory audit is an audit, which is made mandatory under The Companies Act 2013. The purpose is to check the truthfulness and fairness of accounting records.

On the Contrary, Tax Audit is defined as an audit of the accounts of the taxpayer for the requirement of Section 44AB of The Income Tax Act, 1961 for assessing the correct income of the Assesee.

WHAT IS FINANCIAL AUDITING?

Audits are all about Checks, Controls and assurance, which may be complied statutorily or even be held voluntarily by the entity to assure the true view of business in terms of finance. You can rely on us for end to end audits and assurance services. Be it related to about Financial Statements, business processes or Information Technology.

Financial auditing

Financial auditing is the process of examining an organization's (or individual's) financial records to determine if they are accurate and in accordance with any applicable rules (including accepted accounting standards), regulations, and laws.

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.

An audit may also be classified as internal or external, depending on the interrelationships among participants.

Areas covered in Financial auditing:

• 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.

Raaas is top auditor in India and best known for their audit services. We provide Stock Audit in India, Tax Audit in India, TDS Audit in India, Tax Audit in Delhi etc.

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Internal Auditor in India
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Auditing And Assurance Service in India

Auditor in India

Ruchi Anand And Associates have skilled and experienced Chartered accountant in India. We provide Company auditors in India, audit and assurance services related to controls around the financial reporting process, including financial business process and IT management controls. We are the best auditors in India for accounting and auditing services. 
At Ruchi Anand & Associates, we offer you with following audit and assurance services in Systems and system controls audit:

• Corporate governance.
• Appraisal of Infrastructure security.
• Evaluation of general IT controls.
• Assistance in documenting or testing internal controls over financial reporting.
• Data quality reviews.
• Project assurance services.
• Designing, implementation and testing of controls.
• Due diligence of systems and controls.
• Evaluation of Database security controls.
• Compliance with prescribed regulatory requirements.
• Finding weaknesses and possible design enhancements in control structure.
• Production of process flow diagrams and documentation .
• Reviews on Financial and operation applications/business process controls.
• Systems – pre- and post-implementation reviews .
• Opinion Services including Third party assurance.
• Third party reports / opinions e.g. internet gaming, web seals.
• Independent assessment of General Computer Control (GCC).
• IT Risk & Controls - GAP Identification & Analysis.
• ERP Effectiveness Evaluations.
• ERP implementation reviews.

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