Audit and Compliance in India - Preview

I ndia B riefing · Issue 45 · February 2021 2 Introduction ROHIT KAPUR Managing Director Dezan Shira & Associates New Delhi Office Understandingaudit andaudit types are crucial formaintaining thefinancial positionof anybusiness. An audit conducted internally or by a third party, helps in evaluating the credibility of the company, improves business efficiency, and ensures compliance with the domestic government regulations. India’s audit regulations require businesses to comply with various types of audits, governed under different laws. The most common audits are statutory audits, internal audits, and cost audits under the Companies Act, 2013, and tax audits under Section 44AB of the Income-Tax Act, 1961. Since the commencement of the Goods and Services Tax (GST) law in 2017, businesses and entrepreneurs in India are required to conduct GST audit each year. In this issueof IndiaBriefing, weprovide readerswithanoverviewof India’s audit types andprocesses, includinggeneral requirements andmaterials tobeprepared. Further, we explain thedifferent types of audit reports, which can be invaluable in helping companies manage their business better and address problems by identifying irregularities and errors. Lastly, we cover key aspects of conducting GST audit, including the types of GST audits, general procedures, and documents requirements. Dezan Shira & Associates has a growing team of accounting and legal professionals in India with years of experience helping foreign enterprises ensure compliance. For questions or information on Annual StatutoryAudit, GSTAudit Assistance, Bookkeeping, Financial Reporting, or other compliance issues, please contact our offices in India. With kind regards, Rohit Kapur Reference India Briefing and related titles are produced by Asia Briefing Ltd., a wholly owned subsidiary of Dezan Shira Group. Content is provided by Dezan Shira & Associates. No liability may be accepted for any of the contents of this publication. Readers are strongly advised to seek professional advice when actively looking to implement suggestions made within this publication. For queries regarding the content of this magazine, please contact: editor@asiabriefing.com All materials and contents © 2021 Asia Briefing Ltd. www.dezshira.com www.aseanbriefing.com www.india-briefing.com www.vietnam-briefing.com www.silkroadbriefing.com www.china-briefing.com www.russia-briefing.com Credits Publisher / Asia Briefing Ltd. Editor / Melissa Cyrill Contributors / Sonakshi Sood, Sugandh Kainth Designer / Aparajita Zadoo Asia Briefing Ltd. Unit 507, 5/F, Chinachem Golden Plaza, 77 Mody Road, Tsim Sha Tsui East Kowloon, Hong Kong. www.asiabriefing.com