Audit Assurance Services

Our Audit Assurance services helps clients to understand the increasing complexity of the regulatory environment , the need for greater transparency in operations and disclosure norms.

We, at SGA provide the following Audit Assurance Services :

  • Statutory Audits under the Companies Act, 2013
  • Income Tax Audits under the Income Tax Act , 1961
  • GST (Goods & Service Tax) Audits
  • Transfer Pricing Audits (in select cases)

For the success and growth of the organizations, they need to hire the best Auditing and Assurance Services. SGA, one of the leading Audit firms in Pune, has the best-advanced techniques and creative approach towards better administrative and financial controls. Our team of experts will suggest the best plans to the organization that will help in making the overall operation more efficient and the financial structure strong. The Audit and Assurance services will surely add efficiency and profitability to their client's organization by providing them with independent credibility to the financial statements, expedient solutions, and professional advice to manage and improve the overall system performance.

Earlier, the financial statement audit was not that important as they are now. Nowadays, more observation is provided to the Company's financial statements. Investors from the market give great importance to the clear evidence of the internal records, which can only be maintained if the organization hires the audit services. There are internal and external auditors, corporate management committees, and audit committees that play a very important role in getting the trust of the investors. All of them need to execute their respective responsibilities well, keeping in mind the legal and high expectations of the investors. To meet the investors' expectations well, the organization needs to provide complete and accurate information regarding the Company's financial statement. The team of experts at SGA in Pune will come up with the parameters and will conduct the audit in the Company well.

Once the audit process is conducted well in the organization, it can provide important information and will state that all the finances are fairly represented. SGA's viewpoint on the audit process is that it is a process for the clients to learn more about their business. It will help in improving the communication with the investors, partners, and even banks. The audit service provided by SGA will surely be more than the expectation of their clients. We not only provide financial information but also provide sound recommendations.

SGA Approach Towards the Audit and Assurance Services :

  • Proper planning and preparation of clear audit program that too as per the statutory requirements.
  • Helps in the evaluation of the strengths and weaknesses of the audit areas. Accordingly, the reports regarding the efficiency, effectiveness and state-of-control are analysed through audits.
  • All the findings, conclusions, and recommendations are presented to the management so that these results can help them to make an adequate decision related to the effectiveness of operations.
  • The audit team appraises the right management actions regarding the reporting techniques and follow-ups.
  • The team of audit experts will stick to the ethical norms of professional standards so that no compromises are made regarding the quality of the audit work.

SGA Experience in Audit and Assurance Services:

SGA is one of the leading Company Auditors in Pune that is having experience of more than 20 years in this field. This experience has surely helped many of the clients change the industry trends and grow their business's legacy. SGA audit services and philosophy are based upon the independence, objectivity, integrity, and strict following of all the professional standards, rules, and regulations. The main objective of every audit is to provide the Company with a fair and true representation of its financial position.
SGA provides the best audit services to the organization that requires an audit for regulatory and statutory reasons, which are associated with the annual and periodic financial information.
The audit services by SGA take into consideration all the appropriate accounting, reporting, prospective auditing, and guidance into the work. SGA also has some Multinational corporations as clients and many small and medium-sized companies as their clients.

  • Proper advice on controls and identifying system weaknesses
  • Compliance with regulations.
  • Providing accounting treatments according to the Company's complex transactions.
  • Better monitoring of prospective accounting for doing regulatory changes.
  • A proper review of the externally reported information
  • Accountant's report.

Every company registered in India is required to prepare financial statement for period ending 31st March every year. Such financial statements must give a true and fair view of the state of affairs of the company and comply with the accounting standards notified by the central government under the Companies Act. Such financial statement must be prepared in the form and format which is prescribed for a specific type of company in schedule VI.

The expression on financial statements includes the following items:

  • A balance sheet as at the end of the financial year.
  • A profit and loss account, or in the case of a company carrying on any activity not for profit, an income & expenditure account for the financial year.
  • Cash flow statement for the financial year.
  • A statement for changes in equity, if applicable.
  • A explanatory note on the accounting policy and assumptions adopted by the company.

A Tax Audit is an audit, made compulsory by the Income Tax Act, if the annual gross turnover/receipts of the assessee exceed the specified limit. Tax audit is conducted in Sec 44AB of the Income Tax Act by a Chartered Accountant.

Applicability of tax audit:

Business Sales / Turnover or Gross Receipt exceeds INR. 1 Crore (INR. 5 crore if the cash receipts and payments do not exceed 5% of the total receipts and payments respectively)
(For Ex. Architect, Advocate, Accountants, Doctors, etc.)
Gross Receipts Exceeds INR 50 Lacs
Business u/s 44AD If the Sales/Turnover or Gross Receipt is less than INR 2 Crore if such person is enrolled under the presumptive taxation scheme who claims that the profits of the business are lower than the profits calculated in accordance with the presumptive taxation scheme (presently this threshold limit is 8% profit on the sales / turnover or gross reciepts) would be required to obtain a tax audit report.
Profession u/s 44ADA Declaring the income at amount less than 50% of the gross receipts and whose income exceeds the basic exemption limit (which is Indian Rs 2.50 lacs at present) for relevant previous year but whose gross receipts are less than INR. 50 lacs.

If the assesses who is qualified under the presumptive taxation scheme but opts out of it after a specified period, he would lose the ability to revert back to the presumptive taxation scheme for a continuous term of 5 assessment years after the decision to opt out is taken.

Every registered person must get its accounts audited under the GST Act by a Chartered Accountant / Cost Accountant if the aggregate turnover during FY exceeds INR 2 Crores from sale of goods or services.

Calculation of turnover shall be PAN (Permanent Account Number ) based i.e. all sale of goods/ services shall be taken for computing the limit of INR 2 Crores.

For computing the aggregate turnover, following shall be included-

  • Value of all inter-state taxable supply
  • Value of all intra-state taxable supply
  • Value of all exempt supplies
  • Value of all export supplies
  • Job work supplies on principal to principal basis
  • Zero rated supplies
  • Any supply to agent/ job work on behalf of principal

For computing the aggregate turnover, following shall be excluded-

  • Taxable supply on which reverse charge is applicable
  • All taxes and cess paid under GST
  • Goods supplied and received back from job work.
  • While computing the limit of INR 2 Crores, turnover of all the branches of an organization should be considered and if the cumulative turnover exceeds the limit of INR 2 Crores then every branch will be liable for GST audit irrespective of the fact that their individual turnover does not exceed the specified limit.
  • Organization can appoint either the single auditor for all branches or separate auditor for each branch.

As per the GST Act, due date of audit and annual return is specified as 31st December of subsequent fiscal year and in case of failure in complying with the same then as per act no specific penalty is prescribed. So it will be covered under the head of general penalty of Rs. 25000.

Transfer Pricing Audits

In taxation and accounting, transfer pricing refers to the rules and methods for pricing transactions within and between enterprises under common ownership or control. Transfer pricing provisions are applicable on international transactions and specified domestic transactions between associated enterprises (AE).

International transactions refers to transactions between two or more AEs involving one of the following activities:

  • The sale, purchase, or lease of tangible or intangible property;
  • The provision of services or cost-sharing agreements;
  • The lending or borrowing of money;
  • A transaction of business restructuring or reorganization with an associated enterprise, irrespective of the fact that it has bearing on the profit, income, losses or assets and/or
  • Any other transaction with a bearing on the profits, income, losses, or assets of such enterprises.

Relationships falling under the AE category include direct or indirect participation in the management, control, or capital of an enterprise by another enterprise. hey also cover situations in which the same person participates in the management, control, or capital of both the enterprises.

Safe harbour rules:

Safe harbour in tax parlance refers to the circumstances under which income-tax authorities accept the transfer price declared by the company, at which it transacts with its subsidiaries or an associated company, without any question.

On June 7, 2017, the Central Board of Direct Taxes (CBDT) in India revamped safe harbour rules to align safe harbour margins with industry standards and enlarge the scope of international transactions under it.

Methods to determine the arm’s length price

For tax purposes, companies are required to record the exchange of goods using the arm’s-length principal.
India’s Income-tax Act, 1961 prescribes the following methods to determine the arm’s length price between two affiliated companies:

  • Comparable Uncontrolled Price (CUP) Method;
  • Resale Price Method (RPM);
  • Cost Plus Method (CPM);
  • Profit Split Method (PSM);
  • Transactional Net Margin Method (TNMM);
  • Such other methods as may be prescribed.

Domestic transfer pricing

Till March 2013, the transfer pricing provisions were limited to international transactions alone. From April 2013 Transfer Pricing provisions have been extended to SDTs (Specified Domestic Transactions) and are applicable from the assessment year 2013-14.

Transactions which are covered under the Specified Domestic Transactions include:

  • Expenditures in which payment has been made or would be made to:
  • A director
  • A relative of the director
  • An entity where a director or the company has the voting interest exceeding 20%
  • The above transactions would be treated as Specified Domestic Transactions only if the aggregate value of such transactions exceeds INR 5 crore. However this threshold has been increased to INR 20 crores from AY 2016-17.

Transfer pricing documentation:

Taxpayers are required to maintain information related to international transactions undertaken with AEs.

The rules prescribe detailed information and documentation that must be maintained by the taxpayer. Such requirements can broadly be divided into two parts.

The first part includes information on the ownership structure of the taxpayer, a group profile, and a business overview of the taxpayer and AEs, including prescribed details such as the nature, terms, quantity, and value of international transactions.

The rules also require the taxpayer to document a comprehensive transfer pricing study.

The second part of the rules requires that adequate documentation is maintained to substantiate the information, analysis, and studies documented under the first part of the rule.

It also contains a recommended list of such supporting documents, including government publications, reports, studies, technical publications, and market research studies undertaken by reputable institutions, price publications, relevant agreements, contracts, and correspondence.

Taxpayers having aggregate international transactions below the prescribed threshold of INR 1 Crore and Specified Domestic Transactions below the threshold of INR 20 Crores are relieved and exempted from maintaining the prescribed documentation.

However, it is essential that the documentation maintained should be adequate to substantiate the arm’s length price of the international transactions or specified domestic transactions.

Companies to which transfer pricing regulations are currently applicable are required to file their tax returns on or before September 30th, following the close of the relevant tax year.


What is the purpose of an internal audit? –A company's internal controls, such as its corporate governance and accounting systems, are examined during an internal audit. In addition, financial reporting and data gathering is supported by these audits, which assure compliance with applicable legislation.

Suppose the Board decides to appoint an internal auditor, in that case, it must be a chartered accountant or a cost accountant or such other professional as the Board deems appropriate to undertake an internal audit of the company's duties and operations.

The Board of Directors may appoint an internal auditor who is a chartered accountant, cost accountant, or other certified professional. The internal auditor may or may not be an employee. No matter whether you're a Chartered Accountant or not.

Legally mandated audits of financial accounts and records are known as "statutory audits."... Enterprises that must be audited include public companies, banks, brokerage and investment organizations, and insurance firms.

An audit is required if an LLP's yearly income exceeds Rs. 40 lakh or its capital contribution exceeds Rs. 25 lakh. In addition, a tax audit is required of proprietorships and partnerships that surpass a certain sales threshold.

The following are critical items to verify during a bank's statutory audit: Procedure for Cash Verification. Tax-Related Purchases. Loan Accounts Verification. Loan Accounts Verification Preliminary Examination. Disbursement. Inspection Following Disbursement.

Banks are required to undergo a statutory audit. The Reserve Bank of India (RBI) and the Institute of Chartered Accountants of India (ICAI) jointly designate Statutory Auditors. All banks undergo a thorough audit once a year after the conclusion of the preceding fiscal year.


Sachin Gujar & Associates,
Chartered Accountants
47/22, Erandwana, Law College Road,
Ekta Apts, 3rd Floor, Above Nirmitee Furniture,
Pune - 411004

© Copyright 2020 All Rights Reserved.