Audit in India - Wikipedia Audit in India This article is an orphan, as no other articles link to it. Please introduce links to this page from related articles ; try the Find link tool for suggestions. ( January 2016 ) Audit or Auditing in India is a system of independently reviewing the records / activities and expressing an opinion thereon. Contents 1 Types 1.1 Social audit 1.2 Statutory audit 1.3 Other 2 CAG 3 ICAI 4 References Types Social audit Main article : Social audit Social audit is a process of reviewing official records and determining whether state reported expenditures reflect the actual monies spent on the ground. Civil society organisations ( CSOs ), Non-governmental organization ( NGOs ), political representatives, civil servants and workers of Dungarpur district of Rajasthan and Anantapuram district of Andhra Pradesh collectively organise such social audits to prevent mass corruption under the Mahatma Gandhi National Rural Employment Guarantee Act ( MGNREGA ). Statutory audit Main article : Financial audit Statutory audit refers to the audit based on the laws applicable on the entity for the time being in force. It is governed by the Indian Accounting Standards ( Ind - AS ) issued by Institute of Chartered Accountants of India from time to time. A Chartered accountant holding a certificate of practice in India is qualified to be a statutory auditor of an entity. It is mandatory for a company in India to get the Statutory Audit of its financial statements done according to the provisions of Companies Act 2013. Other Internal Audit Government Audit Environmental audit CAG Main article : Comptroller and Auditor General of India The Comptroller and Auditor General ( CAG ) of India is an authority, established by the Constitution under Constitution of India / Part V Chapter V / Sub-part 7B / Article 148, who audits all receipts and expenditure of the Government of India and the state governments, including those of bodies and authorities substantially financed by the government. The CAG is also the external auditor of Government - owned corporations and conducts supplementary audit of government companies, i.e., any non-banking / non-insurance company in which Union Government has an equity share of at least 51 per cent or subsidiary companies of existing government companies. The reports of the CAG are taken into consideration by the Public Accounts Committees ( PACs ) and Committees on Public Undertakings ( COPUs ), which are special committees in the Parliament of India and the state legislatures. The CAG is also the head of the Indian Audit and Accounts Department, the affairs of which are managed by officers of Indian Audit and Accounts Service, and has over 58,000 employees across the country. The CAG is ranked 9th and enjoys the same status as a judge of Supreme Court of India in Indian order of precedence. The current CAG of India is Shashi Kant Sharma, who was appointed on 23 May 2013. He is the 12th CAG of India. ICAI Main article : Institute of Chartered Accountants of India The Institute of Chartered Accountants of India was established under the Chartered Accountants Act, 1949 passed by the Parliament of India with the objective of regulating accountancy profession in India. ICAI is the second largest professional accounting body in the world in terms of membership second only to AICPA. It prescribes the qualifications for a Chartered Accountant, conducts the requisite examinations and grants license in the form of Certificate of Practice. Apart from this primary function, it also helps various government agencies like RBI, SEBI, MCA, CAG, IRDA, etc. in policy formulation. ICAI actively engages itself in aiding and advising economic policy formulation. For example ICAI has submitted its suggestions on the proposed Direct Taxes Code Bill, 2010. It also has submitted its suggestions on the Companies Bill, 2009. The government also takes the suggestions of ICAI as expert advice and considers it favorably. ICAI presented an approach paper on issues in implementing Goods and Service Tax in India to the Ministry of Finance. In response to this, Ministry of Finance has suggested that ICAI take a lead and help the government in implementing Goods and Services Tax ( GST ). It is because of this active participation in formulation economic legislation, it has been designated by A.P.J. Abdul Kalam as a `` Partner in Nation Building ''. References Jump up ^ Aiyar, Yamini ; Samji, Salimah ( 1 February 2009 ), Transparency and Accountability in NREGA -- A Case Study of Andhra Pradesh ( PDF ), Accountability Initiative, p. 8, archived from the original ( PDF ) on 29 October 2013 Jump up ^ Dobhal, Harsh ( 2011 ), Writings on Human Rights, Law, and Society in India : A Combat Law Anthology : Selections from Combat Law ( 2002 -- 2010 ), Socio Legal Information Cent, p. 420, ISBN 978 - 81 - 89479 - 78 - 7 Jump up ^ `` Defence Secretary Shashi Kant Sharma to be new CAG '', The Hindu, 21 May 2013 Jump up ^ Act No. XXXVIII of 1949. See `` Chartered Accountants Act 1949 as amended in 2006 '' Jump up ^ Ranking of Accountancy bodies as per, World Ranking Guide Blog Jump up ^ `` Finmin eyes ICAI role in GST roll - out '', The Financial Express, 3 July 2008 Retrieved from `` https://en.wikipedia.org/w/index.php?title=Audit_in_India&oldid=790116540 '' Categories : Auditing Accounting in India Hidden categories : Orphaned articles from January 2016 All orphaned articles Use dmy dates from January 2016 Use Indian English from January 2016 All Wikipedia articles written in Indian English All articles with unsourced statements Articles with unsourced statements from January 2016 Talk Contents About Wikipedia Add links This page was last edited on 11 July 2017, at 18 : 29. Text is available under the Creative Commons Attribution - ShareAlike License ; additional terms may apply. By using this site, you agree to the Terms of Use and Privacy Policy. 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Question: who is required to get statutory audit done
Answer: a company in India