There is various audit some are mandatory some are voluntarily done by an individual or businesses. Audit services in India can be categorized in the below points:
Statutory Audits: Under this comes various audits as required by statutory that can be under the income tax, under company laws, under banking laws, under GST laws, so this category has a huge scope under audit services in India.
Internal Audits: This is mandatory for certain classes however mostly organization makes it a part of the business because of its significance in assessing the organization current affairs and preventing and detecting any error or frauds.
Management Audit: This category of the audit is to assess and recommend the resources, asset, strategies followed by the organization is in the right shape and going in a planned direction.
Similarly, there are other important audits such as stock audit, due diligence audit, forensic audit and so on.
In India, statutory audits are conducted for each fiscal year (For the period 1st April to 31st March) and not the calendar year. The most common important two statutory audits are:
Company Audits : Company Audits is governed by the Companies Act, 2013. Company audit has the objective of reporting the state of the company’s accounts & finance to the regulatory authority. Audit and assurance services like company audits are performed by qualified auditors who are working as an independent external party. The audit report form has its own set of rule that is set by the Government. Rules on the appointment, change, removal of auditors has specific rules.