Audit and Assurance Services in India

Audit and Assurance Services in India

EzyBiz India Consulting LLP provides comprehensive Audit and Assurance Services in India to Indian companies, foreign-owned subsidiaries, multinational groups, startups, growing businesses and established enterprises.

Our audit and assurance support helps organisations improve the reliability of financial information, identify accounting and compliance gaps, strengthen internal controls, evaluate business risks and prepare efficiently for statutory, tax, internal and regulatory audits.

Quick Answer: Audit and assurance services involve an independent or structured examination of financial information, business processes, internal controls, tax records or regulatory compliance. Depending on the engagement, the objective may be to express an audit opinion, evaluate controls, identify risks, verify prescribed information or provide management with factual findings and recommendations.

Where an audit, certification, attestation or audit report is required by law or professional regulations to be undertaken or signed by an eligible practising Chartered Accountant, the relevant engagement is undertaken independently through our network partner Chartered Accountant firm, subject to applicable professional standards and independence requirements.

Our role extends beyond year-end audit coordination. We help businesses prepare audit schedules, reconcile key accounts, review financial statements, identify documentation gaps, respond to audit queries and improve the processes that support reliable financial reporting.

What Are Audit and Assurance Services?

Audit and assurance services help stakeholders obtain greater confidence regarding financial information, controls, processes or specified information. The nature and level of assurance depend upon the purpose of the engagement, applicable law and professional framework.

Audit and Assurance Are Related but Different

An audit generally involves systematic examination of records and evidence with the objective of reaching a conclusion or, where applicable, expressing an opinion in accordance with prescribed professional standards.

Assurance is a broader concept. Depending upon the engagement, assurance work may relate to financial statements, internal controls, specified financial information, regulatory compliance or other subject matter.

The Auditing and Assurance Standards Board of ICAI develops and maintains professional standards and guidance relating to auditing and assurance engagements in India.

Why Independent Review Matters

Reliable financial information is important not only for statutory compliance but also for shareholders, directors, investors, lenders, overseas parent companies and management teams.

A structured audit or assurance process can help identify material errors, unsupported balances, weak controls, compliance failures, unusual transactions and inconsistencies between accounting records and statutory filings before they become larger financial or regulatory issues.

Our Audit and Assurance Services in India

EzyBiz India supports businesses across multiple forms of audit, review and assurance. The exact scope is customised according to the organisation’s legal status, size, industry, reporting requirements, risk profile and management objectives.

Statutory Audit

Companies incorporated in India are generally required to have their annual financial statements audited in accordance with the Companies Act, 2013.

We provide audit-readiness and coordination support covering books of account, financial statements, audit schedules, reconciliations, supporting documents, management responses and closure of audit queries.

For detailed assistance, see our Statutory Audit Services in India.

Internal Audit

Internal audit evaluates whether business processes, risk-management systems and internal controls are appropriately designed and operating effectively.

Our internal-audit assignments may examine procurement, sales, inventory, payroll, banking, statutory compliance, fixed assets, information systems, approval controls, management reporting and other areas based on the organisation’s risk profile.

Explore our Internal Audit Services in India.

Tax Audit and Certification

Tax audit requires examination and reporting of prescribed tax and accounting particulars under the applicable income-tax framework.

Our support includes applicability assessment, books and financial-statement review, preparation of tax-audit schedules, reconciliations, tax-reporting disclosures and coordination with the eligible tax auditor.

Read more about our Tax Audit and Certification Services in India.

GST Audit and Compliance Review

Under the current GST framework, businesses may face departmental audit under Section 65 of the CGST Act, special audit under Section 66 and detailed verification of GST records during scrutiny, assessment or other proceedings.

We assist with GST reconciliations, document preparation, books-versus-return review, input tax credit analysis, reverse-charge review and responses to audit observations.

For a detailed explanation of the present framework, visit our GST Audit Services in India page or refer to the official CBIC GST portal.

Due Diligence and Special Reviews

Businesses, investors and acquirers may also require focused reviews before acquisitions, investments, restructuring, financing or other transactions.

Such work may cover financial performance, working capital, taxation, regulatory compliance, accounting quality, contingent liabilities and internal controls.

See our Due Diligence Advisory Services for transaction-specific reviews.

Statutory Audit Services in India

Statutory audit is one of the principal assurance requirements for companies in India. It is distinct from tax audit, internal audit and GST audit even though the same underlying books and financial information may be relevant to several of these processes.

Companies Act Audit Requirement

Companies incorporated under the Companies Act, 2013 are generally required to appoint an eligible statutory auditor and have their annual financial statements audited irrespective of whether the company has substantial turnover or profitability.

The statutory framework governing auditors, their appointment, eligibility, powers and duties is principally contained in Sections 139 to 143 and related provisions of the Companies Act, 2013. Businesses may refer to the official Companies Act, 2013 published by the Ministry of Corporate Affairs.

Auditor Appointment, Independence and Reporting

The statutory auditor must satisfy applicable eligibility and independence requirements. The auditor’s responsibilities include obtaining appropriate audit evidence and reporting on the financial statements in accordance with the Companies Act and applicable Standards on Auditing.

Matters such as auditor appointment, rotation where applicable, resignation, remuneration, reporting obligations, CARO requirements and internal financial controls should be assessed according to the company’s circumstances.

Statutory Audit Readiness Support

We help management prepare for the statutory audit by reviewing year-end closing entries, financial statements, balance-sheet schedules, reconciliations, supporting documents, statutory dues, related-party information and significant transactions.

Early preparation can substantially reduce repeated audit queries and last-minute adjustments.

Businesses requiring detailed statutory-audit support should use our dedicated Statutory Audit Services page.

Internal Audit and Risk Advisory Services

Internal audit is designed primarily to help management and those charged with governance evaluate risks, processes and controls. Its scope can therefore be significantly broader than a financial-statement audit.

Risk-Based Internal Audit

A risk-based internal audit focuses audit resources on areas presenting greater financial, operational, regulatory, technological or governance risk.

The process ordinarily involves understanding the business, defining the audit universe, assessing risks, prioritising audit areas and designing procedures responsive to identified risks.

For a deeper explanation, read our guide on Risk-Based Internal Audit.

Internal Controls and Process Review

Internal audit evaluates whether controls are properly designed, implemented and functioning in practice. A documented policy is of limited value if approvals are bypassed or controls are not evidenced.

Important areas can include segregation of duties, maker-checker controls, vendor onboarding, purchase approvals, customer credit, bank payments, inventory movement, employee reimbursements, ERP access and period-end financial closing.

Our guide on the Internal Control System explains the role of preventive, detective and corrective controls.

Outsourced and Co-Sourced Internal Audit

Businesses may maintain internal audit entirely in-house, outsource the function or use a co-sourced model combining internal resources with external specialists.

The appropriate structure depends upon business complexity, available skills, independence considerations, geographic spread and the frequency and depth of reviews required.

The detailed methodology is covered in our guide to the Internal Audit Process.

Tax Audit and Certification Services

Tax audit focuses on prescribed tax and accounting matters and should not be confused with statutory financial-statement audit.

Tax Audit for FY 2025–26

For financial year 2025–26 corresponding to assessment year 2026–27, tax-audit reporting continues under the Income-tax Act, 1961 framework and the applicable tax-audit forms prescribed thereunder.

Applicability depends upon the nature of the taxpayer, turnover or gross receipts, cash transaction conditions and relevant presumptive-taxation provisions.

Forms 3CA, 3CB and 3CD

For FY 2025–26, Form 3CA generally applies where accounts are already required to be audited under another law, while Form 3CB applies in relevant cases where such audit under another law is not required. The prescribed particulars are reported in Form 3CD.

The latest utilities and forms can be checked through the official Income Tax Department Forms and Utilities portal.

Income-tax Act, 2025 Transition

From Tax Year 2026–27, the Income-tax Act, 2025 framework applies. The Income Tax Department has introduced Form 26 for tax-audit reporting under the new framework, replacing the erstwhile combination of Forms 3CA/3CB and 3CD for the relevant tax year.

Accordingly, businesses should distinguish between reporting applicable to FY 2025–26 under the earlier Act and reporting applicable from Tax Year 2026–27.

For detailed year-specific guidance, see our Tax Audit and Certification Services.

GST Audit and Compliance Review

GST audit requirements have evolved since introduction of GST. Businesses should therefore avoid relying upon outdated material relating to the earlier turnover-based GST audit regime.

Departmental Audit under Section 65

Section 65 of the CGST Act empowers the authorised tax authorities to conduct an audit of a registered person in accordance with the prescribed procedure.

Businesses receiving a departmental audit notice may need to provide books of account, returns, reconciliations, invoices, input tax credit records and explanations relating to significant differences.

Special Audit under Section 66

In specified circumstances involving complexity of the case, valuation or input tax credit issues, a special audit may be directed under Section 66 of the CGST Act through a Chartered Accountant or Cost Accountant nominated by the Commissioner.

GST Reconciliation and Readiness Review

A practical GST review may include comparison of turnover in books with GSTR-1 and GSTR-3B, reconciliation of input tax credit with GSTR-2B, review of reverse charge, exports, place of supply, credit notes, classification and tax-rate application.

Our dedicated GST Audit Services page explains departmental audit, special audit and GST compliance-review support in greater detail.

Financial Due Diligence and Special Reviews

Not every audit or financial review arises because of a statutory requirement. Management, investors, lenders and overseas parent companies may require a specialised review for a particular commercial objective.

Financial Due Diligence

Financial due diligence may analyse historical financial performance, quality of earnings, working capital, debt, cash flows, accounting practices and significant balance-sheet exposures before an acquisition or investment.

The review may be combined with tax and regulatory due diligence where the transaction requires a wider assessment of historical risks.

Learn more through our Financial, Tax and Regulatory Due Diligence Advisory Services.

Compliance and Control Reviews

A focused compliance review may examine whether processes are operating consistently with legal requirements, contractual obligations and internal policies.

Areas may include GST, TDS, payroll compliance, corporate filings, related-party approvals, delegation of authority and management reporting.

Agreed-Upon and Special-Purpose Reviews

Businesses may also require verification of specified balances, transactions, project expenditure, utilisation of funds or other information for management, investors, lenders or contractual purposes.

The scope, procedures and form of reporting are determined according to the purpose of the engagement and applicable professional standards. Where the engagement constitutes a reserved attest or assurance function, it is undertaken independently by an eligible professional.

Audit Readiness and Financial Statement Review

Many audit delays arise not from complex accounting questions but from unreconciled balances, incomplete schedules, missing documents and differences between accounting records and statutory filings.

Year-End Closing Review

Before commencement of the annual audit, businesses should review cut-off entries, provisions, accruals, depreciation, inventory valuation, outstanding liabilities, receivable recoverability, statutory dues and other significant closing adjustments.

Reconciliation and Schedule Preparation

Important balances should be supported by detailed schedules and reconciliations. These may include bank reconciliations, receivables, payables, loans, fixed assets, inventory, GST, TDS, employee dues and related-party transactions.

Where finance teams require wider accounting and closing support, our Managed Business Services in India can assist with accounting, reconciliations and financial reporting processes.

Management Support During Audit

We help management organise responses to audit queries, obtain supporting documents, investigate differences and track unresolved items through completion.

The objective is to ensure that management explanations are supported by appropriate accounting records and documentary evidence.

Our Audit and Assurance Approach

Our approach is structured around understanding the business first and designing the review around material risks rather than following a generic checklist for every client.

Understanding the Business and Scope

We begin by understanding the organisation’s business model, ownership, industry, locations, accounting systems, statutory framework, reporting requirements and significant transactions.

The objectives, period, locations, processes and deliverables are then defined for the engagement.

Risk Assessment and Planning

Financial, operational, tax, regulatory and control risks are identified before determining the procedures to be performed.

Particular attention may be given to material balances, high-volume transactions, unusual journal entries, estimates, related-party transactions, management overrides and areas where previous audits identified weaknesses.

Testing, Evidence and Reconciliation

Depending upon the assignment, procedures may include transaction testing, analytical review, sampling, full-population data analysis, reconciliations, process walkthroughs, supporting-document verification and discussions with responsible personnel.

Significant findings should be supported by appropriate evidence and clearly linked to the underlying risk or reporting requirement.

Reporting, Closure and Follow-Up

Material observations are discussed with management before completion. Where appropriate, the report may contain the observation, risk implication, root cause, recommendation, management response, responsible person and expected implementation timeline.

For internal-audit assignments, follow-up can be used to determine whether previously agreed corrective actions have actually been implemented.

What Our Audit and Assurance Work Actually Tests

Our experience shows that audit value increases when financial records are considered together with the underlying business processes and controls.

Revenue, Receivables and Collections

Review procedures may examine customer contracts, invoicing, revenue recognition, cut-off, credit notes, discounts, unbilled revenue, debtor ageing, collections and reconciliation of revenue with GST returns and other operational records.

Procurement, Payables and Expenses

We may examine vendor onboarding, purchase orders, receipt of goods or services, invoice approval, expense classification, payment authorisation, duplicate payments, related-party vendors, outstanding liabilities and year-end provisions.

Payroll and Employee-Related Compliances

Payroll review may cover employee master data, attendance inputs, salary calculations, reimbursements, variable pay, payroll approvals, TDS, PF, ESI and other employee-related statutory obligations, depending upon applicability.

Inventory and Fixed Assets

Audit procedures may address physical inventory, negative stock, slow-moving items, valuation, inventory records, capitalisation, asset additions and disposals, depreciation and reconciliation of the fixed-asset register with the general ledger.

Banking, Treasury and Journal Controls

Typical procedures include review of bank reconciliations, payment controls, authorised signatories, maker-checker arrangements, borrowings, unusual fund movements and manual journal entries.

GST, TDS and Statutory Compliance

Financial records may be compared with GST returns, TDS records and other statutory filings to identify inconsistencies that could affect financial reporting or create potential regulatory exposure.

Common Issues We Identify During Audit Readiness

Well-maintained books substantially improve audit efficiency. In practice, several recurring issues can delay completion or result in audit adjustments and management observations.

GST and Books Mismatches

Differences may arise between turnover recorded in books and GSTR-1 or GSTR-3B, or between purchase records, GSTR-2B and input tax credit claimed.

Such differences should be reconciled rather than carried forward without explanation.

TDS and Statutory Payment Gaps

Common issues include non-deduction or short deduction of TDS, delayed deposits, differences with Form 26AS or other tax records and incorrect accounting of statutory liabilities.

Old Balances, Inventory Differences and Unsupported Entries

Long-outstanding debtors and creditors, unreconciled advances, negative inventory, old suspense balances, unsupported provisions and journal entries without adequate documentary evidence can create both accounting and audit concerns.

Weak Maker-Checker and Documentation Controls

Audit observations frequently arise where the same person can initiate, approve and record a transaction, or where approvals are informal and cannot subsequently be evidenced.

Clear authority matrices, documented approvals and appropriate segregation of duties can materially strengthen the control environment.

Audit Services for Different Business Profiles

The areas requiring greatest audit attention differ according to ownership, industry, transaction volume, funding structure and operational complexity.

Foreign-Owned Indian Subsidiaries

Foreign-owned Indian companies often need to align local statutory reporting with overseas group requirements.

Our support may include intercompany reconciliations, related-party information, transfer-pricing coordination, Indian statutory records, group reporting packages, internal-control documentation and coordination between the Indian finance team and overseas management.

Startups and Growing Companies

Rapidly growing businesses may outgrow informal accounting and approval systems. Audit readiness can help identify weaknesses in closing processes, documentation, expense approvals, payroll, revenue recognition, statutory compliance and investor reporting.

Establishing reliable controls at an early stage can also improve future fundraising and due-diligence readiness.

Manufacturing, Trading and Service Businesses

Manufacturing and trading businesses may require greater focus on inventory, procurement, fixed assets, production records and working-capital controls.

Service businesses may require closer review of contracts, revenue recognition, employee costs, subcontractors, project billing, unbilled revenue and receivables.

Professional Standards and Independence

Audit quality depends upon appropriate professional standards, documentation, evidence, ethical requirements and independence. Different forms of audit and assurance are governed by different legal and professional frameworks.

ICAI Standards and Professional Framework

Financial-statement audits and other assurance engagements requiring a practising Chartered Accountant are performed in accordance with the applicable pronouncements and professional requirements of the Institute of Chartered Accountants of India.

ICAI publishes the applicable Standards on Auditing and Assurance guidance. Internal-audit practitioners may also refer to ICAI’s Compendium of Standards on Internal Audit.

EzyBiz India provides advisory, audit-readiness, internal-audit, reconciliation and coordination support. Where law or professional regulation requires an audit opinion, certificate or attestation from an eligible practising professional, such work is undertaken independently through the appropriate network partner Chartered Accountant firm.

Documents Generally Required for Audit and Assurance

The exact information request depends upon the assignment. Commonly requested records may include:

• Trial balance and general ledger
• Annual or interim financial statements
• Bank statements and bank reconciliations
• Customer and vendor ledgers
• Receivable and payable ageing
• Inventory records and stock statements
• Fixed-asset register and depreciation workings
• Loan and borrowing documents
• GST returns and reconciliations
• TDS returns, challans and related records
• Payroll and employee-related statutory records
• Income-tax returns and previous tax-audit reports
• Material contracts and agreements
• Related-party transaction details
• Board and shareholder records, where relevant
• Supporting invoices and vouchers
• Management information reports
• Previous audit reports and management letters
• Supporting schedules for material financial-statement balances

A customised information request should be prepared after the purpose and scope of the engagement are understood.

Why Choose EzyBiz India for Audit and Assurance Support?

EzyBiz India Consulting LLP combines accounting, taxation, regulatory, financial and business-advisory experience to help businesses address audit issues from a broader commercial perspective.

• Integrated expertise: Coordination across accounting, GST, income tax, TDS, corporate compliance and financial reporting.
• Practical audit readiness: Focus on reconciliations, schedules, documentation and resolution of issues before final reporting.
• Risk-focused approach: Attention to material business risks instead of mechanical checklist-based review.
• Foreign-owned business experience: Support for Indian subsidiaries requiring coordination with overseas finance teams and group auditors.
• Internal-control insight: Review of maker-checker controls, delegation of authority, reconciliations, system access and process weaknesses.
• Management-focused reporting: Findings explained together with their business implications and practical corrective actions.
• Professional independence: Reserved audit, attestation and certification functions are undertaken independently through eligible network professionals where applicable.

Our objective is not merely to complete an audit requirement. We seek to help management create more reliable financial information, stronger controls and a more efficient audit process.

Frequently Asked Questions

What is audit and assurance?

Audit and assurance involve structured examination or evaluation of information, records, processes or controls to increase confidence in the subject matter being reviewed. The precise objective depends upon the type of engagement.

A statutory financial-statement audit, internal audit, tax audit and GST departmental audit therefore serve different purposes even though each may involve examination of accounting information.

Is every company in India required to have a statutory audit?

Companies incorporated under the Companies Act, 2013 are generally required to have their annual financial statements audited by an eligible statutory auditor irrespective of turnover or profitability. Specific requirements should be evaluated with reference to the company’s legal status and applicable law.

Is internal audit the same as statutory audit?

No. A statutory audit primarily addresses annual financial statements and statutory reporting requirements. Internal audit generally evaluates business risks, internal controls, governance, processes and compliance according to an agreed audit plan and scope.

Certain prescribed classes of companies are required to appoint an internal auditor under Section 138 of the Companies Act, 2013 and applicable rules.

When is tax audit required?

Tax-audit applicability depends upon the taxpayer’s nature of business or profession, turnover or gross receipts, cash transaction conditions and relevant presumptive-taxation provisions.

For FY 2025–26, reporting continues through the applicable Forms 3CA or 3CB together with Form 3CD. For Tax Year 2026–27 under the Income-tax Act, 2025, the new Form 26 framework applies.

What is GST audit under current law?

Under the present GST framework, audit may include departmental audit by tax authorities under Section 65 and special audit under Section 66 of the CGST Act. The earlier turnover-based GST audit certification regime should not be treated as the current requirement.

Businesses may also undertake voluntary GST compliance reviews to identify return, books, input tax credit, reverse-charge and other reconciliation issues.

Can EzyBiz India sign statutory and tax audit reports?

EzyBiz India Consulting LLP provides audit readiness, internal audit, accounting review, reconciliations, advisory and coordination support. Where a statutory audit, tax audit, certification or attestation is legally required to be undertaken or signed by an eligible practising Chartered Accountant, the relevant engagement is undertaken independently through our network partner Chartered Accountant firm, subject to applicable eligibility and independence requirements.

Related Audit and Advisory Services

• Statutory Audit Services in India
• Internal Audit Services in India
• Tax Audit and Certification Services in India
• GST Audit Services in India
• Due Diligence Advisory Services
• Managed Business Services in India

Prepared By:
EzyBiz India Consulting LLP
New Delhi, India

Reviewed By:
Anil Agrawal, Chartered Accountant

Last Updated:
September 2026

Disclaimer:
The information provided on this page is intended for general informational and educational purposes only and should not be construed as accounting, auditing, tax, legal or regulatory advice. Audit, assurance, tax and regulatory requirements depend upon the legal status, activities, financial information and specific circumstances of each organisation. Applicable laws, rules, forms, professional standards and regulatory interpretations may change from time to time. Professional advice should therefore be obtained after reviewing the specific facts of the matter. Any statutory audit, tax audit, certification, attestation or other service required by law or professional regulation to be undertaken or signed by an eligible practising Chartered Accountant is undertaken independently through the appropriate eligible professional or network partner firm, subject to applicable independence and professional requirements.