Businesses must appropriately organize their papers by recognized standards before an audit. Documents such as the trial balance, VAT Return Filings, important general ledger, significant business contracts, legal documents, and fixed asset schedule, among others, must be presented to the auditor. If you’re seeking the best internal audit firms in India to assist you with all of the paperwork, don’t worry. CAC’s professionals are here to assist you. In this article, we’ll go over a quick rundown of all the documentation needed for a successful audit in India.
The Needed Documents for a Successful Audit
- General Ledger: A general ledger is an important document in accounting and bookkeeping since it provides records of all the transactions your organization has made over some time.
- Copies of Loans, Leases, and Material Contracts: You are required to disclose to the auditor details of loans, leases, and, in some instances, material contracts. Long-term agreements between suppliers, customers, and others are examples of material contracts.
- Loan Statements: Every company will be involved with some kind of debt, and some of them will be bad debts.
- Copies of legal documents: All the documents related to the incorporation of the company must be readily available during the process of audit in India. You will also need to share with the auditor your trade license, tax registration number, share certificates, and certificate of incorporation. Moreover, the auditors will also ask for the real beneficiary register and the partners’ or shareholders’ register.
- VAT Returns: during the audit, an auditor will check your VAT Return filings and will also match the revenue with the submitted VAT Returns. Therefore, you must be organized in regards to the documents.
- Payroll Reports: It is critical for a company operating in India to ensure that its payroll records are correct and prepared according to industry standards. The payroll report assists the auditor in determining whether the salary expense is legitimate. An auditor can check whether all active employees are being paid at the correct rate according to their labor contract.
- Banking: You should have a list of all bank accounts with the bank name, account number, and signatures of all authorized signers on hand. The auditor will also need independent confirmation of the bank’s bank balance from the bank itself. The bank balance as of the balance sheet date shall be confirmed by the auditor. At the time of the audit, the papers related to each of the accounts must be given to the auditor. A consulting firm like CAC, the best internal audit firm in India, can assist your company in streamlining the procedure.
- Minutes of Board Meetings: During the audit, the auditor will go over the minutes of every board of directors meeting. The minutes offer information on the needed financial statements, and the Economic Substance Regulations now require firms that engage in comparable activities to do the same.
- Transactions: Over the audit, you should make a list of all transactions that occurred in your firm during a specific period. It should be backed up by all of the purchase invoices and bills.
Conclusion Annual audits are a time-consuming process for firms, but they are necessary to guarantee that accounting rules are followed to the letter. If you looking for the best internal audit firms in India to handle all of your audit-related needs? Contact CAC’s professionals immediately.