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WhatsApp for a Free ConsultationUnderstanding Audit & Assurance Services
An audit is an independent examination of an organisation's financial records, transactions, and internal controls to provide an opinion on whether the financial statements present a true and fair view of the organisation's financial position and performance. Assurance services extend beyond audits to include reviews, agreed-upon procedures, and other engagements designed to enhance the confidence of users in financial information.
Auditing is one of the most critical functions performed by Chartered Accountants. Statutory audits are legally mandated — every company registered under the Companies Act, 2013 must have its accounts audited by a Chartered Accountant each year. Beyond the statutory requirement, audits serve as an independent verification that management's financial reporting is reliable, controls are functioning, and there are no material misstatements or frauds.
At Pixelex, our audits are not a rubber stamp. They are a genuine, risk-based examination of your financial statements — conducted with professional scepticism, in compliance with Standards on Auditing (SAs) issued by ICAI, and with a commitment to reporting honestly and completely.
Why This Matters
- Statutory Requirement: Every company registered under the Companies Act must have its financial statements audited by an independent Chartered Accountant. Non-compliance is an offence.
- Tax Audit: Businesses with turnover above ₹1 crore (₹10 crore for digital payment businesses) must have their accounts audited under Section 44AB of the Income Tax Act, 1961.
- GST Audit: Certain taxpayers are required to get accounts audited by a CA under GST law.
- Investor Confidence: Audited financial statements are a requirement for bank loans, investor due diligence, government tenders, and many regulatory applications.
- Fraud Detection: An audit provides an independent check on the accuracy of financial records and the effectiveness of internal controls.
- Management Decision-Making: Audited, reliable financial statements are the foundation of sound business decisions.
Who Needs This Service?
- Private Limited Companies, Public Limited Companies, and OPCs
- LLPs with turnover above prescribed thresholds
- Businesses with turnover above ₹1 crore requiring a tax audit
- NGOs, trusts, and Section 8 companies
- Businesses seeking bank finance (audited statements required)
- Companies in regulated industries (NBFC, insurance, healthcare, etc.)
Why Choose Pixelex
- Genuine independence: We are appointed as independent auditors — our opinion is not influenced by management. We report what we find.
- Risk-focused approach: We focus our effort on the areas of highest risk to the organisation — not a uniform, tick-box examination that misses what matters.
- Audit + Tax integration: Because we also provide tax services, we identify tax implications of accounting treatments observed during the audit — and advise accordingly.
Our Process
- 01
Audit Planning
We meet with management to understand the business, identify risk areas, and plan the audit scope and timeline. We issue an engagement letter confirming the terms of our appointment.
- 02
Fieldwork
Our team conducts detailed examination of financial records, tests of controls, verification of assets and liabilities, and review of significant accounting estimates and judgements.
- 03
Management Communication
We communicate findings, queries, and any identified issues to management during the audit, allowing matters to be resolved efficiently.
- 04
Audit Report & Opinion
We issue a formal audit report expressing an opinion on whether the financial statements give a true and fair view, in accordance with applicable accounting standards (Ind AS / AS) and the Companies Act.
- 05
Management Letter
We provide a management letter highlighting any weaknesses in internal controls, accounting processes, or compliance matters observed during the audit, along with recommendations for improvement.
Frequently Asked Questions
Is a statutory audit compulsory for all companies?
Yes. Every company incorporated under the Companies Act, 2013 — whether or not it has begun business — is required to have its accounts audited by a Chartered Accountant appointed as statutory auditor at every AGM.
What is the threshold for a tax audit under Section 44AB?
A business must get its accounts audited if its total sales, turnover, or gross receipts exceed ₹1 crore in a financial year (raised to ₹10 crore if aggregate cash receipts and payments do not exceed 5% of total transactions). Professionals must get audited if gross receipts exceed ₹50 lakhs (raised to ₹75 lakhs under the same cash condition).
What is the difference between a statutory audit and a tax audit?
A statutory audit is conducted under the Companies Act to give an opinion on financial statements. A tax audit under Section 44AB is conducted for tax compliance purposes — it involves certifying specific tax-related information (in Form 3CA/3CB and 3CD) and is a separate engagement from the statutory audit.
Can the same CA firm conduct both the statutory audit and the tax audit?
Yes, in most cases. However, there are independence requirements and limits on the number of audits a CA can conduct. We advise on appointment procedures.
What is an internal audit and is it mandatory?
An internal audit is an ongoing, management-driven review of business processes, controls, and risk management — independent of the statutory audit. Under the Companies Act, internal audit is mandatory for certain classes of companies (listed companies, large unlisted companies, and OPCs above specified thresholds). We provide internal audit services on a retainer or project basis.