Auditing and Investigation
Who conducts audits in India?
Audits in India are typically conducted by qualified professionals such as Chartered Accountants (CAs) or firms registered with regulatory bodies like the Institute of Chartered Accountants of India (ICAI).
What are the types of audits conducted in India?
In India, common types of audits include statutory audits, internal audits, tax audits, and special purpose audits such as forensic audits or environmental audits.
Is auditing mandatory in India?
Yes, auditing is mandatory for certain entities in India as per the provisions of the Companies Act, 2013. Companies, including public and private limited companies, are required to undergo statutory audits annually.
What triggers a financial investigation in India?
Financial investigations in India may be triggered by various factors such as suspected fraud, whistleblower complaints, regulatory violations, discrepancies in financial statements, or unusual financial transactions.
What are the legal implications of financial investigations in India?
Financial investigations in India may lead to legal proceedings, enforcement actions, or regulatory penalties against individuals or entities found guilty of financial misconduct or fraud.
Difference between Auditing and Investigation
Auditing and Investigation are two important processes in business and organizational management, particularly in ensuring compliance, detecting fraud, and maintaining accountability. Auditing refers to the systematic examination and verification of financial records, transactions, and internal controls within an organization; whereas, Investigation refers to a systematic inquiry or examination conducted to uncover potential financial irregularities, misconduct, fraud, or other suspicious activities within an organization or financial institution.