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2 - INDIA BRIEFING | April 2014
Dear Friends and Clients,
The beginning of India’s annual audit season marks the close of the business year,
and is often a busy time for companies with operations in the country. As we sail
through the basics of audit, wewill provide readers with a flavor of India’s annual audit
process and offer important tips for the smooth navigation of its audit regulations
and accounting standards.
In this issue of India BriefingMagazine, we begin by explaining the twomost common
types of audit in India, statutory and internal audits, and outline the standard steps
and procedures an Indian auditor will follow in each. Because India’s accounting
standards differ slightly from the widely accepted IFRS and IAS protocols, it is extremely important for foreign
invested enterprises to maintain an awareness of these discrepancies and prepare for annual audit in a timely
and organized manner. By providing an overview of these accounting differences, as well as the documents
and receipts typically requested during an annual audit, it is our hope that this issue of India Briefing will enable
readers to become significantly more comfortable with pre-audit preparations, and ultimately find the audit
process as a whole easier to follow and understand.
Finally, while foreign invested enterprisesmay approach India’s audit seasonwith some degree of apprehension, an
audit report can be an invaluable tool for both the detection and avoidance of fraud. By discussing fraud detection
and avoidance, we will seek to highlight the subtle differences between error and fraud while touching upon
risk management strategies. Effective audit professionals will seek to obtain an eagle’s-eye view of a company’s
accounts and activities so as to enable the early detection of fraud bymanagement, andwe strongly recommend
our readers consider conducting interim audits to further mitigate the risk of fraud.
Best Regards,
Country Manager
Dezan Shira & Associates, India
Introduction
Issue 22 •April 2014
Alphonso Doss
Oil on canvas, 1987, 106.7 X 83.8 cm
Delhi Art Gallery
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This Month’s Cover Art
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