What is an audit? How do Auditing Firms get Audited?

There are many auditing clients you may encounter and there are different reasons that each of them require auditing. As you gain experience here are a number of clients and types of audits you may need to carry out. 

Wikipedia describes audit in the following words, “An audit is a systematic and independent examination of books, accounts, statutory records, documents and vouchers of an organization to ascertain how far the financial statements as well as non-financial.”

Here are different ways that different types of auditing are carried out and where they are carried out.

How do Auditing Firms get Audited?

In any big Audit firm, you will find there are "Audit Partners" and there is also a tax and advisory division. The tax and advisory along with all other non-audit lines of service are formed under the paradigm of Limited Liability Company (or equivalent). The audit practice will then be called "Partnership".

This stems from an age-old policy that Auditors, Lawyers, and Accountants should not have limited liability for providing wrong advice or assurance to third parties.

The current times dictates that most country legislation will still require an audit firm to be in a partnership with the audit partners.

As it is a partnership you do not require a legal document to be audited.
The partners, however, are required to provide for their personal income tax and are audited by the tax authority (IRA/IRS) personally.

Large audit firms get audited by the licensor of the firm's brand name such as individual KPMG, PWC, EY, and Deloitte have to follow some specific financial guidelines internally so that they can stick to the brand name, and hence these KPIs are under the scanner and monitored closely. However, it is in no way comes near to a full audit that some of the private companies face.

VRamaratnam & Company are distinguished auditors in Chennai that meet up to applicable reporting standards with perseverance. There are a number of by-products of the audit process such as finding out the internal management issues and other important insights that can cater to the present and future challenges too.

While some of the rules of the game stand transformed as of today some of the basic fundamentals remain unchanged.  The investor must add accuracy, completeness, and fair presentation of information in the financial statements and disclosures. The auditing process helps maintain the confidence of both the company and the financial system too. For the accountingfirms in Chennai and the other cities of the country, the main challenge is keeping up with a fast-evolving corporate reporting environment.

The Best Auditing Firm in Chennai that Works with a Tech Startup

Accounting is an integral part of starting and operating a successful business. Business owners besides designing the website or choosing the perfect business name should also have a solid understanding of the numbers, otherwise, they won’t be able to shine.

If the entrepreneurs do not concentrate on the financials of their business they would later discover that they are running their business at a loss.

How Can Start-ups Enhance their Financial Prospects?

The Small Business Administration or the (SBA) makes a list where they give 11 reasons why small businesses falter and fail. Amongst the top reasons, at least four of them concentrates on the financial aspect of a small business. And the number 1 reason is trying to do everything on your own.

Hire an Accounting Professional

If you do not have a degree in accounting to boast of you need the help of a professional to set up to update your accounting system. To get to the bottom of your financial nitty-gritty, you have to decide whether you should hire an accountant or a bookkeeper.

What a Bookkeeper can do

Most startup requires the services of a bookkeeper. A bookkeeper's services make the running of business a simple uncomplicated affair. A bookkeeper can look after several aspects your business such as for maintaining a record keeping system, produce your financial statements and handle your financial transactions.

How Can an Accountant Help a Startup?

If you are dabbling in a complex business structure or dealing with limited liability Company, you must hire an accountant, especially when you want to grow your business. An accountant can also help you when you need to hire more employees on a payroll.

Many entrepreneurs start small with a part-time business or also work at home to manage the escalating expenses. If this is the case then you may not be able to hire a full-time accountant. However. You can seek help from an accountant for your end-of-the-year tax preparations.

Cash or Accrual Accounting Methods

The two accepted accounting methods are cash accounting and accrual accounting. Some small business organizations choose one amongst the two while other small startups use the accrual method. Employ the services of an accountant to find out which method you can use, suiting your purpose.

VRamaratnam & Company is one of the top Indian Chartered Accountants firm in Chennai, powered by experienced and skilled Chartered Accountants and other professionals.

The firm has a goal to achieve that is, to provide a large range of financial and consulting services to its clients. Their wide spectrum of services includes direct and indirect taxation, Auditingand Assurance Services, and they largely focus on Non-Resident Indians. Their chief interest veers around startups business valuation, business entity registration in India, along with Accounting and Payroll Outsourcing Services.