Auditing
Statutory, tax, bank, trust, and school audit engagements — each conducted in accordance with the Standards on Auditing issued by the Institute of Chartered Accountants of India.
What This Service Covers
Audit and assurance engagements form a core part of the Chartered Accountancy profession and are governed by the Standards on Auditing (SAs) issued by the Institute of Chartered Accountants of India. Every audit conducted by Shivbhavan & Associates is carried out in accordance with the applicable Standard on Auditing for that engagement type, including planning, evidence gathering, risk assessment, and the formation and expression of an opinion or conclusion in the prescribed format.
The firm conducts audit engagements across several categories, covering obligations that arise under the Income-tax Act, the Companies Act, sector-specific regulatory requirements, and the requirements of educational and charitable institutions.
Governs the requirement for a Tax Audit once a business or professional crosses the prescribed turnover or gross receipts threshold.
An Independent Check, Required by Law
Audit requirements exist to provide an independent, professionally verified check on financial statements, whether for statutory purposes under the Companies Act, tax purposes under Section 44AB, or the requirements of a specific regulator or funding body. Failure to complete a required audit within the prescribed timeline can result in penalty under the applicable statute — for instance, penalty under Section 271B of the Income-tax Act for failure to get accounts audited where required.
This information is provided for general awareness. Whether a specific audit requirement applies in your case depends on your individual circumstances and should be confirmed directly with the firm.
Who This Typically Applies To
- Companies required to have their accounts audited under the Companies Act, 2013
- Businesses and professionals crossing the turnover or gross receipts threshold under Section 44AB
- Banks requiring statutory or concurrent audit at branch level
- Charitable and religious trusts required to have their accounts audited
- Schools and educational institutions subject to audit under funding or regulatory requirements
- Listed and unlisted companies requiring audit under applicable regulatory frameworks
Common Filing Scenarios
Crossing the Tax Audit Threshold
A business or professional that crosses the turnover or gross receipts threshold prescribed under Section 44AB during a financial year becomes subject to Tax Audit requirements for that year, even if this is the first year the threshold has been crossed.
First Statutory Audit After Incorporation
Every company, regardless of turnover, is required to have its financial statements audited under the Companies Act, 2013, starting from its first financial year, with the first auditor typically appointed by the board within 30 days of incorporation.
Audit for Exemption Compliance
Charitable and religious trusts claiming exemption under Sections 11 and 12 of the Income-tax Act are generally required to have their accounts audited and the audit report furnished in the prescribed form as a condition of claiming that exemption.
School & Grant Compliance
Schools and educational institutions receiving government grants or operating under specific regulatory frameworks are often required to have their accounts audited annually as a condition of continued recognition or funding.
What's Included, By Entity Type
Statutory Audit
Audit of financial statements under the Companies Act, 2013, for companies required to have their accounts audited, conducted per SA 700 and the Companies (Auditor's Report) Order (CARO) where applicable.
- Financial statements examined against applicable accounting standards
- Internal controls and supporting records reviewed
- CARO reporting requirements addressed where applicable
- Audit report issued in the prescribed format
Tax Audit under Section 44AB
Audit for businesses and professionals crossing the prescribed turnover or gross receipts threshold, with preparation and certification of Form 3CA/3CB and Form 3CD.
- Applicability confirmed against the prescribed threshold
- Books of account and supporting documentation examined
- Form 3CD particulars compiled and verified
- Audit report filed within the statutory due date
Bank Audit
Statutory and concurrent audit assignments at bank branches, subject to applicable RBI guidelines and empanelment eligibility requirements.
- Branch-level financial records and advances examined
- Compliance with RBI prudential norms reviewed
- Concurrent audit findings reported on the prescribed schedule
- Statutory audit report issued per RBI-specified format
Trust Audit
Audit of accounts of charitable and religious trusts required to have their books audited under the Income-tax Act, 1961, and applicable trust legislation, with Form 10B/10BB certification where required.
- Application and accumulation of income examined
- Compliance with registration conditions under Sections 12A/12AB reviewed
- Form 10B or 10BB prepared based on applicable thresholds
- Audit report filed alongside the trust's income tax return
School Audit
Audit of accounts maintained by schools and educational institutions, including grant-funded institutions, in compliance with applicable regulatory and funding body requirements.
- Fee income and grant utilisation examined
- Compliance with funding body reporting formats confirmed
- Audit report prepared for submission to the relevant authority
- Findings communicated to the institution's management
Listed & Unlisted Company Audit
Statutory audit engagements for both listed and unlisted companies, conducted with reference to the regulatory framework applicable to each category, including SEBI requirements for listed entities.
- Applicable regulatory framework identified for the entity category
- Additional disclosure requirements for listed entities addressed
- Audit conducted per the relevant Standards on Auditing
- Report issued in the format required by the applicable regulator
Audit of financial statements under the Companies Act, 2013, for companies required to have their accounts audited, conducted per SA 700 and the Companies (Auditor's Report) Order (CARO) where applicable.
- Financial statements examined against applicable accounting standards
- Audit report issued in the prescribed format
Audit for businesses and professionals crossing the prescribed turnover or gross receipts threshold, with preparation and certification of Form 3CA/3CB and Form 3CD.
- Applicability confirmed against the prescribed threshold
- Audit report filed within the statutory due date
Statutory and concurrent audit assignments at bank branches, subject to applicable RBI guidelines and empanelment eligibility requirements.
- Branch-level financial records and advances examined
- Statutory audit report issued per RBI-specified format
Audit of accounts of charitable and religious trusts required to have their books audited under the Income-tax Act, 1961, and applicable trust legislation, with Form 10B/10BB certification where required.
- Application and accumulation of income examined
- Audit report filed alongside the trust's income tax return
Audit of accounts maintained by schools and educational institutions, including grant-funded institutions, in compliance with applicable regulatory and funding body requirements.
- Fee income and grant utilisation examined
- Audit report prepared for submission to the relevant authority
Statutory audit engagements for both listed and unlisted companies, conducted with reference to the regulatory framework applicable to each category, including SEBI requirements for listed entities.
- Applicable regulatory framework identified for the entity category
- Report issued in the format required by the applicable regulator
The Filing Process
Submit Enquiry
Share your requirement through the website or by phone. The firm reviews it and responds during office hours with next steps.
Document Collection
Relevant documents are collected based on your entity type and income sources, following the checklist confirmed for your specific situation.
Computation & Review
Income is computed under every applicable head, with eligible deductions and exemptions applied before the return is finalised for your review.
Filing & Confirmation
The return is filed within the statutory due date, and the filing acknowledgment along with the computation summary is shared with you.
Verified. Processed. Resolved.
Every filed return moves through e-verification, departmental processing, and — where applicable — refund or query resolution.
After the Audit Report Is Issued
Once an audit report is issued, it typically accompanies the entity's statutory filings — whether the annual return filed with the Registrar of Companies, the income tax return where a tax audit applies, or submission to a specific regulator or funding body. Depending on the audit type, the report may include an unmodified opinion, a qualified opinion, or specific observations that require management's attention.
Where an audit report contains qualifications or observations, these are typically discussed with management before finalisation, and may require follow-up action or disclosure in subsequent periods depending on their nature.
Documents You'll Need
Document requirements vary considerably depending on the type of audit and the nature of the entity, but the checklist below covers what's typically required to begin most audit engagements. Click each item as you gather it — the tracker above updates as you go. This is a preparation aid only; submitting an enquiry will confirm the exact list applicable to your specific engagement before it begins.
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Frequently Asked Questions
What is the difference between statutory audit and tax audit?
Statutory audit is required under the Companies Act for companies regardless of turnover, while tax audit under Section 44AB applies specifically to businesses and professionals crossing a prescribed turnover or gross receipts threshold under the Income-tax Act.
What is the due date for completing a tax audit?
The tax audit report is generally required to be filed electronically before the due date for filing the income tax return applicable to entities subject to audit, as notified for each assessment year.
What happens if a tax audit is not conducted when required?
Failure to get accounts audited where required under Section 44AB can attract a penalty under Section 271B, subject to the reasonable cause provisions under the Act.
Who appoints the auditor of a company?
The first auditor of a company is generally appointed by the Board of Directors within 30 days of incorporation, and subsequent auditors are appointed by the shareholders at the Annual General Meeting.
Can the same auditor be reappointed indefinitely?
Certain classes of companies are subject to mandatory rotation of auditors after a prescribed tenure under the Companies Act, 2013, though this requirement does not apply uniformly to all company categories.
What is CARO and when does it apply?
The Companies (Auditor's Report) Order (CARO) prescribes additional matters that the auditor must report on for specified classes of companies, over and above the standard audit opinion.
Is audit mandatory for all charitable trusts?
Audit is generally required for trusts once their total income before exemption exceeds the basic exemption limit, or as a condition attached to their registration and claim of exemption under the Income-tax Act.
What happens if an audit report includes a qualification?
A qualified opinion indicates the auditor has identified a specific matter of concern; the entity's management is typically expected to address the underlying issue, and the qualification may need to be disclosed in subsequent filings or reports.
Have a Query About Auditing?
Submit an enquiry and the firm will respond during office hours. Engaging the firm for this service begins with a formal engagement following your enquiry.