The role of corporate auditing firms in India concerning financial statements

Several cases show that company owners manipulated their financial statements and hence were involved in fraud. So, to help companies to become trustworthy in the eyes of stakeholders, corporate auditing firms in India come to the fore.

Financial accounting allows external actors to know the profitability and value of a business. An investor can learn which companies have consistently performed well, whether they have paid dividends and appear to have positive margins. A lender may review financial accounts to assess liquidity, cash flow, leverage, and overall creditworthiness.

Companies publish their Financial Statements annually and under the particular requirements, endorsed by an independent third party, and that is where corporate auditing firms in India come into play, to ensure that the Financial Statements have been prepared in compliance with the standards set forth herein. 

The role of auditors with Financial Statements

To verify and make sure that the Financial Statements of a company are reliable and true, the assistance of corporate auditing firms in India is needed.

The purpose of the audit is to provide the auditor’s opinion on whether the financial statements present the financial position and operating results of an enterprise in all material respects fairly and accurately in line with financial reporting standards.

What are the principles of auditing?

1. a) Professional skepticism: The auditor examines the validity of the evidence with a questioning approach and evaluates whether the evidence conflicts with other information and documents as well as the statements of the business management.
2. b) Reasonable assurance: The audit is designed to assure that the financial statements and other documents related to the finances of the company do not have any inaccuracy in them.

The audit is not an obligation imposed on businesses by laws, regulations, and standards, on the contrary, it is an indispensable need for today’s businesses.

Transparent, clear, and understandable information is the most valuable information, and this is only possible with the top audit firms in Delhi.

An audit is required to provide accurate and reliable information to:

• Company management
• Shareholders
• Employees
• Lenders
• Investors
• Regulatory institutions and organizations

Today, the responsibility of auditors is very great. Although they are not normally the ones who make the decisions, nor are they directly responsible for the embezzlement and bad practices that occur with some frequency in the business world, these are the professionals that the public usually looks at first when a major fraud is committed.

Assuming work with the highest professional and ethical standards is a commitment that is always present in every one of the auditing professionals.

In particular, it is up to the auditors, by acting with ethics and transparency, to consolidate the trust that is placed in them, so that all users of financial information and society in general fully trust their reports and opinions that accompany the Financial Statements checked by the audited companies.

This content is meant for information only and should not be considered as an advice or legal opinion, or otherwise. AKGVG & Associates does not intend to advertise its services through this.

Posted by:

CA Aman Aggarwal

AKGVG & Associates