Tag Archives: Stock Auditors in India

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Audits Under PCAOB Standards

A yearly audit is a key safeguard for your money and a planning tool for the year ahead. Think of it as a “year in review” for your finances.

The primary benefit of an annual audit under PCAOB standards  is the confidence it gives you and your members that the PTO’s financial house is in order. Basically, the audit verifies the numbers, ensures accuracy, and assesses procedures. A comprehensive audit also identifies internal controls that should be implemented to improve the integrity of your financial systems. Furthermore, the audit gives closure to the treasurer and sets a starting point for the new year’s activity. An audit is also the primary tool for uncovering financial mismanagement. Hopefully you won’t need to conduct an audit for this reason, but an annual audit can uncover problems before they become significantly more serious. Your PTO might also choose to include in your audit a review of how closely your group’s income and expenditures matched the year’s budget. This type of review can be a strong planning tool.

 

The audit is not within the jurisdiction of the PCAOB. This seems like a strange request.  Perhaps the client is a clearing agency or futures commission merchant registered with the Commodity Futures Trading Commission, which requires that entities registered with it have an audit performed in accordance with PCAOB standards. Maybe the client has entered into a contractual agreement that requires an audit conducted under PCAOB standards. Or maybe, for whatever reason, the client just wants an audit conducted under PCAOB standards.

 

The PCAOB determines which audits are within its jurisdiction, including audits of the financial statements of issuers and nonissuer brokers and dealers registered with the SEC. A regulator (other than the PCAOB) requiring that the audit be conducted in accordance with PCAOB standards does not make the audit fall within the jurisdiction of the PCAOB. Therefore, even though the regulator— for example, the CFTC— requires an audit to be conducted in accordance with PCAOB standards, that audit is required to also be conducted in accordance with GAAS.

 

The Auditor’s Report

The report from the auditor will mark the completion of the review. If you are using volunteers, you should clearly itemize what you expect back, so your auditors know when they have completed their job.

Ensure that your auditor has returned the files you provided, and file the original report in the PTOs permanent archives. At the first meeting of the new school year, you should present the auditors report and move that it be adopted. According to Robert’s Rules of Order, once the annual report of the auditor is adopted, it is no longer necessary to move to adopt each month’s treasurer’s report. The reports are presented and then simply filed for next year’s audit.

Related Things you should Know before Registering a Company in India

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Why Auditing Service is Necessity

Auditing

An audit is more than a formality, it is a necessity to protect your business and encourage it to thrive. Early warnings, open communication and pragmatic resolution of issues are the essential features.

Audit testing procedures tailored to the specific audit, our firms maintain excellent relationships with their clients. This quality-led approach means members provide an intelligent, constructive and challenging audit to every one.

Statutory Audits : It is a legally required review of the accuracy of a company’s or governments financial records. The purpose of a statutory audit is the same as the purpose of any other audit – to determine whether an organization is providing a fair and accurate representation of its financial position by examining information such as bank balances, book keeping records and financial transactions of both Public and Private Companies, Banks, Financial Institutions, PSU’s, firms and Sole-Proprietors.

Internal Audit : Focus is to ensure strong internal control systems to minimize the risk of accidental or deliberate errors and omissions. Safeguarding of assets, adequate division of authority over key control areas and compliance with internal operating policies and guidelines are other focus areas.

Tax Audit : To prepare report in Form 3CA/3CB including annexure in Form 3CD as per div 44AB of the Income-Tax Act. We’ll help with your IRS tax audit by:
Reviewing the tax authority notice or inquiry and explain what it means
Researching issues involved
Assisting you in assembling documents and records for the tax audit
Reviewing the tax audit findings and explaining them to you
Explaining the appeal process and other options available to you in the event you disagree with the tax authority’s findings

Process / Transaction Audit : A process audit is an examination of results to determine whether the activities, resources and behaviors that cause them are being managed efficiently and effectively.

Management Audit : To assess the systems, methods and policies followed by an entity’s management in the administration and the use of resources, tactical and strategic planning, and employee and organizational improvement.

Stock Audit: : It is carried out on behalf of banks and financial institutions. The objective is to ensure that the security against which funds are lent by the bank is safe and valued correctly.

Due Diligence : We assist clients in conducting financial, legal and accounting reviews in case of mergers, acquisitions and investments. A sound understanding of local laws, regulations and accounting practices enables us to vet all critical issues in detail.

Forensic / Risk Audit : Our forensic audit focuses on high risk areas and helps you strengthen your internal controls.Chartered accountant in Delhi

What is it : Forensic audit techniques seek to uncover corporate or other organization fraud. Results emanating from a forensic audit are typically used to support both civil litigation and criminal prosecutions. Forensic audit techniques can be broken down into five basic categories.

Testing Defences : Most businesses and other organizations have procedures and defences set up to prevent the occurrence of fraud. A good initial forensic audit technique is to attempt to circumvent these defences yourself. The weaknesses you find within the organization’s controls will most probably guide you down the same path taken by suspected perpetrators. This technique requires you to attempt to put yourself in the shoes and think like your suspect.

Trend Analysis : Businesses have cycles and seasons much akin to nature itself. An expense or event within a business that would be analogous to a snowy day in the middle of summer is worth investigating. Careful review of your subject organization’s historical norms is necessary in order for you to be able to discern the outlier event should it arise within your investigation.

Digital Forensic Examinations : Every transaction leaves a digital footprint in today’s computer-driven society. Close scrutiny of relevant emails, accounting records, phone logs and target hard drives is a requisite facet of any modern forensic audit. Digital investigations can become quite complex and require support from trained digital investigators. However, many open-source digital forensics tools are now available to assist you in this phase of the investigation.

Face to Face Interviews : Forensic auditing is akin to detective work, and every good detective desires to look his witnesses and suspects in the eye. Personal interviews with the staff of your target entity yield a better understanding of its operations and of the culture that exists within it. According to John J. Hall of the Journal of Accountancy, critical information can be gleaned from interviews with parties who have knowledge of the events without being directly connected to the fraud.

Full Financial Auditing : Detailed financial audits can be complex and most often require the assistance of a qualified forensic accountant. Basic financial audit techniques include bank statement reconciliations, scrutiny of all vendor contracts and payments, review of tax returns and analysis of public filings. Financial forensic audit techniques seek to identify suspicious transactions and trace them back to potential perpetrators.

How we can help

Gather and analyze evidence
Integrate interview information with queries from databases, emails, and hard drives
Report our findings, review internal controls, and provide remediation options
Expert testimony

Internal Audit : The scope of the audit is defined as per the internal controls and is carried out with specific emphasis on cost control. The main purpose of an internal control audit system is to ensure no mistakes, omission or accidental or deliberate errors. Our team is well trained in safeguarding of assets and operating with internal guidelines and policies to ensure smooth procedures.