Audit under Companies Act

Audit under the Companies Act, 2013 is a statutory requirement that ensures the financial statements of a company present a true and fair view of its affairs, in compliance with applicable accounting standards and legal provisions.

With increasing regulatory oversight from MCA, NFRA, and ROC, every company — whether private, public, or one person company — must maintain accurate books, comply with reporting standards, and undergo independent audit by a qualified Chartered Accountant.

We deliver end-to-end statutory audit services that go beyond compliance — providing assurance, identifying control weaknesses, and helping management strengthen financial discipline and corporate accountability.

Our Companies Act Audit Services

Statutory Audit

Independent audit of financial statements under Section 143 of the Companies Act, 2013, with reporting on true and fair view.

Internal Audit

Mandatory internal audit under Section 138 for prescribed companies, covering processes, controls, and risk assessment.

Cost Audit

Cost records audit under Section 148 for specified industries, with reporting in CRA-3 and filing in CRA-4.

Secretarial Audit

Audit of compliance with corporate laws under Section 204 for listed and prescribed companies, reported in MR-3.

CARO Reporting

Detailed reporting under the Companies (Auditor's Report) Order on fixed assets, inventory, loans, and statutory dues.

IFC & ICFR Reporting

Evaluation and reporting on Internal Financial Controls and Internal Controls over Financial Reporting frameworks.

Tax & AS / Ind AS Compliance

Verification of compliance with Accounting Standards, Ind AS, Schedule III, and applicable tax provisions in financials.

Special Purpose Audits

Limited reviews, certifications, and audits required for ROC filings, due diligence, and regulatory submissions.

Our Audit Process

Engagement & Planning

Acceptance, scope finalisation, and audit planning based on company size, structure, and risk profile.

Risk Assessment

Understanding business, evaluating internal controls, and identifying areas of significant audit risk.

Audit Execution

Substantive testing, vouching, ledger scrutiny, and verification of statutory compliance and disclosures.

Reporting

Issuance of audit report, CARO annexure, and management letter highlighting observations and recommendations.

ROC Filing Support

Assistance with AOC-4, MGT-7, and related ROC filings to complete the post-audit compliance cycle.

Why Audit under Companies Act Matters

✓ Mandatory compliance under Companies Act, 2013

✓ Ensures true and fair view of financial statements

✓ Detects errors, irregularities, and control gaps

✓ Strengthens investor and lender confidence

✓ Supports compliance with AS, Ind AS, and Schedule III

✓ Reduces risk of MCA, ROC, and NFRA penalties

✓ Improves internal financial controls (IFC/ICFR)

✓ Enables smooth fundraising, listing, and due diligence

FAQs on Audit under Companies Act

Which companies require statutory audit?

Every company registered under the Companies Act, 2013 — including private limited, public limited, OPC, Section 8, and small companies — is required to get its accounts audited annually by a qualified Chartered Accountant, regardless of turnover or profitability.

Who can be appointed as a statutory auditor?

Only a Chartered Accountant in practice or a firm of Chartered Accountants can be appointed as statutory auditor. The first auditor is appointed by the Board within 30 days of incorporation, and subsequent auditors are appointed by shareholders in the AGM for a term of five years.

What is CARO and which companies does it apply to?

CARO (Companies Auditor's Report Order) requires auditors to report on specific matters such as fixed assets, inventory, related party transactions, and statutory dues. It applies to most companies, except small private companies, OPCs, banking, insurance, and certain Section 8 companies, subject to prescribed thresholds.

Is internal audit mandatory under Companies Act?

Internal audit is mandatory under Section 138 for listed companies and unlisted public or private companies that cross prescribed thresholds of paid-up capital, turnover, borrowings, or deposits. It can be conducted by a Chartered Accountant, Cost Accountant, or other professional appointed by the Board.

What is the difference between statutory audit and tax audit?

Statutory audit is conducted under the Companies Act, 2013 to verify the truth and fairness of financial statements. Tax audit is conducted under Section 44AB of the Income Tax Act, 1961 to verify compliance with tax laws and is applicable based on turnover or income criteria.

What are the consequences of non-compliance?

Failure to appoint an auditor or conduct audit can attract penalties on the company, directors, and officers in default under Section 147. It may also result in adverse remarks in ROC filings, disqualification of directors, and reputational damage with regulators and stakeholders.

What is reporting on Internal Financial Controls (IFC)?

Auditors of certain companies are required to report on the adequacy and operating effectiveness of Internal Financial Controls over Financial Reporting (ICFR). This involves evaluating policies, processes, and controls that ensure reliability of financial reporting and prevent fraud.

Stay Audit-Ready Under Companies Act

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