AUDIT AND ASSURANCE

Statutory Audit

In the complex landscape of financial regulations, businesses are tasked with the critical duty of maintaining strict compliance. A statutory audit serves as the guiding tool to help them navigate this challenging terrain with accuracy. We understand that a statutory audit is more than just a legal obligation; it’s an essential instrument for upholding financial transparency and integrity.

• Maintaining Legal Adherence - Statutory audits are required to determine if a      company is in compliance with the wide range of laws, rules, regulations,      and standards. They act as a protective measure for ensuring legal      compliance.

• Revealing Financial Reality - Statutory audits go beyond mere compliance,      uncovering the financial realities hidden within a company’s statements.      They provide stakeholders with confidence that the financial information      presents a true and accurate picture of the company’s condition.

• Requirement and Supervision. - As per Section 139(1) of the Companies Act, 2013,      each company must appoint an individual or firm as its auditor. This      financial guardian is crucial in safeguarding the company’s financial well-being.

Mandatory Statutory Audit

A. For Companies

Every company, regardless of its type, is required to appoint a statutory auditor. For Limited Liability Partnerships (LLPs), those with a turnover exceeding Rs. 40 lakhs or a contribution over Rs. 25 lakhs must undergo a statutory audit.

B. Proprietorship Firms

For proprietorship firms, a tax audit is mandatory if annual sales turnover exceeds Rs. 1 crore in business or Rs. 50 lakhs in a profession.

Focused Area

Statutory audits are meticulous examinations that cover crucial areas like:

• Assessing Internal Controls - Carefully evaluate internal controls to confirm their strength and effectiveness.
• Reviewing Balance Sheet Components - Assets, liabilities, and equity are thoroughly examined.
• Analyzing Profit & Loss Account - Scrutinize income, expenses, and other financial elements.
• TDS Compliance - Ensuring adherence to tax deducted at source (TDS) regulations is a key focus.
• Additional Critical Checks - Inspect dividend payments, statutory benefits, loan and advance compliance, and more

Internal Audit

• In today’s landscape of complex regulations, intricate operations, and heightened scrutiny, internal audits are essential for organizations. At RCAS & CO., we view internal audits as more than a compliance task; they are critical to sound governance, effective risk management, and achieving strategic objectives.

Key Functions of Internal Audits

• Enhancing Governance: Internal audits provide objective assurance that internal controls and risk management practices are effective, reinforcing governance.
• Mitigating Risks: A structured approach to evaluating  and improving risk management processes helps minimize the potential for fraud and errors.
• Assessing Controls: Internal audits assess the efficiency and effectiveness of internal controls, ensuring timely corrective action where needed.

Our Internal Audit Methodology

• Audit Charter: A formal audit charter defines objectives and scope.
• Organized Testing: A systematic approach to testing controls and procedures.
• Competency-Based Audits: Leveraging specialized skills  for in-depth analysis.
• Coordination with External Auditors: Ensuring alignment and enhancing audit coverage.
• Evaluation and Reporting: Comprehensive analysis and actionable reporting.

Focus Areas Include:

• Accounting Systems Analysis: Reviewing accounting  systems and internal controls.
• Information Management: Assessing the accuracy and  security of financial and operational information.
• Operational Efficiency: Evaluating the effectiveness of financial controls and operational processes.
• Physical Verification: Conducting physical checks and verifications as necessary.

At RCAS & CO., our internal audit approach is tailored to enhance your organization’s resilience, efficiency, and compliance, supporting a robust foundation for growth and sustainability.

Tax Audit

At RCAS & CO., we provide expert tax audit services to ensure your financial records are accurate, compliant, and optimized. Here’s why clients choose us:

• Experienced Auditors: Our skilled auditors bring deep knowledge of tax regulations for thorough and efficient audits.
• Compliance Assurance: We help you adhere to tax laws, reducing risks and avoiding penalties.
• Accuracy and Transparency: Expect precise reporting, clear communication, and proactive improvement recommendations.
• Timely Delivery: We prioritize prompt and dependable audit services to strengthen your financial foundation.