Bridging the Gap: Financial Audit Support
The success of a financial audit depends on the quality of the "Audit Trail." At Diwakar and Associates, we work alongside your finance team to ensure that all cost-related figures in your financial statements are backed by solid evidence.
Applicability & Regulatory Limits
While not a "mandatory" audit itself, this support is critical for:
- Large Scale Entities:Companies with turnover > ₹100 Crore where manual reconciliation of cost and finance is impossible.
- Inventory-Heavy Businesses:Where valuation under AS-2/Ind AS-2 is scrutinized by the auditor.
- Statutory Compliance:Ensuring that the "Cost Records" note in the Financial Audit report (CARO 2020) is accurate.
Why & When is it done?
Why
To prevent audit observations, avoid "qualified reports," and ensure that complex cost allocations are logically explained to the statutory auditor.
When
Ideally starting one month before the financial year-end or during the interim audit phase.
How we provide this service at Diwakar and Associates
We take the "heavy lifting" off your finance team through a structured process:
1
Schedule Preparation
We draft detailed schedules for Inventory, WIP, and Fixed Assets.
2
Cost-Financial Reconciliation
We reconcile the profit as per Cost Records with the profit as per Financial Accounts to ensure 100% data integrity.
3
Technical Justification
We provide the "basis of allocation" for overheads and utilities, answering the auditor's queries on your behalf.
4
Audit Representation
We act as your technical consultants during meetings with the statutory auditors to explain complex costing methodologies.
The Impact
By utilizing our support, firms typically reduce the time spent on audit queries by 40%, leading to faster finalization of accounts and lower audit-related stress.
Our Commitment to You
Precision in Every Schedule. At Diwakar and Associates, we commit to delivering meticulous support that is 100% compliant with the latest MCA regulations and Cost Accounting Standards (CAS). You can expect timely filings, zero-compromise data security, and actionable insights that drive efficiency far beyond the balance sheet.
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