Internal & statutory audit prep

Category: Accounting & Bookkeeping. From ₹7,999. Typical timeline: Project-based.

Overview

Audit support prepares a business for internal or statutory audit by organising books, reconciling schedules, and resolving queries before and during the auditor's review, reducing the disruption and back-and-forth that an unprepared audit typically causes. This is distinct from the audit itself — the support team works alongside the client to make sure records, documentation and explanations are ready when the independent auditor asks for them.

Who needs it

• Companies preparing their books and schedules ahead of the annual statutory audit
• Businesses crossing the turnover threshold requiring tax audit for the first time
• Organisations undergoing internal audit mandated by their board or investors
• Companies needing help responding to auditor queries and finalising audit schedules

Eligibility

• Companies and LLPs preparing for statutory audit under the Companies Act or LLP Act
• Businesses undergoing internal audit as part of board or investor requirements
• Entities facing tax audit under Section 44AB of the Income Tax Act
• Organisations preparing for a specific audit such as stock, process or compliance audit

Documents required

• Trial balance and financial statements for the audit period
• Bank reconciliation statements for all accounts
• Fixed asset register, loan confirmations and statutory payment challans
• Sample invoices, contracts and supporting vouchers as requested by the auditor
• Prior year audit report and management letter, if available

Process

1. Pre-audit review — Review books, reconciliations and schedules to identify and fix gaps before the auditor begins fieldwork.
2. Schedule preparation — Prepare standard audit schedules — fixed assets, loans, statutory dues, related party transactions — in the format auditors expect.
3. Query coordination — Act as the point of contact to gather documents and explanations the auditor requests during fieldwork.
4. Observation resolution — Work with the client to resolve draft observations before the audit report is finalised.
5. Closure support — Assist in implementing corrective action for any final observations noted in the audit report.

Government fees

• Government fee: Not applicable — audit support is preparatory advisory work; statutory audit fees are separately payable to the appointed auditor

Professional fee

Professional fee starts at ₹7,999 for a project-based audit support engagement covering schedule preparation and query coordination for a standard-sized audit, priced higher for larger or multi-location audits.

Timeline

Audit support engagements are project-based and typically run for the duration of the audit fieldwork, commonly 2-4 weeks depending on audit scope and the state of existing records.

Deliverables

• Complete set of reconciled audit schedules
• Query log with documentation gathered for each auditor request
• Summary of draft observations and proposed resolutions
• Post-audit action plan for any items noted in the final report

Frequently asked questions

Is audit support the same as being the statutory auditor?

No — audit support prepares the client's side of the audit; the statutory or tax auditor remains an independent, separately appointed professional who conducts the actual audit and issues the report.

Can audit support help avoid audit qualifications?

Yes — by identifying and resolving issues in the books before the auditor reviews them, many potential qualifications or observations can be addressed proactively rather than appearing in the final report.

Do you help with tax audit under Section 44AB as well?

Yes — audit support extends to preparing the data and reconciliations tax auditors need for Form 3CD reporting under Section 44AB, in coordination with the appointed tax auditor.

Common mistakes

• Waiting until the auditor arrives to start reconciling accounts, compressing weeks of work into the audit window
• Not maintaining supporting documentation for related party transactions, a common area of audit query
• Failing to close out prior year audit observations, causing them to resurface in the current audit
• Treating audit support as a one-time fire drill instead of an ongoing readiness discipline

Penalties for non-compliance

• Delayed or qualified audit reports can affect ROC filing timelines and attract related late fees
• Unresolved statutory dues or non-compliance flagged during audit can lead to separate departmental penalties
• Poor audit readiness increases professional fees charged by the statutory auditor for additional fieldwork time

Legal references

• Companies Act, 2013, Section 143 — powers and duties of statutory auditors
• Income Tax Act, 1961, Section 44AB — tax audit requirement and Form 3CD reporting
• Standards on Auditing (SA) issued by ICAI — framework auditors follow during fieldwork