Books closed
Trial balance finalised, with suspense and unexplained items cleared.
Service
Audit support is preparation, and it is not an audit
Someone can organise your books, schedules and reconciliations before an audit. They cannot sign the audit unless they are eligible, independent and appointed as auditor. This line protects you.
Where the line sits
| Point | Audit support | The audit itself |
|---|---|---|
| Purpose | Get your records ready | Give an independent opinion or report |
| Who | Accountant, bookkeeper or an outside firm | For a company's statutory audit, a Chartered Accountant under section 141 of the Companies Act. A tax audit needs a CA in practice |
| Whose side | Works for you | Must remain independent of you |
| What you get | Schedules, reconciliations and a tidy file | A signed audit report |
| Can they be the same person? | Do not assume so. An auditor preparing your books can raise independence issues. Ask your auditor before arranging this. | |
Do not accept a "signed audit" from someone who has not shown you a membership number and certificate of practice. See how to check a CA's credentials.
Audit readiness checklist
Ask your auditor for their own list. This is a general starting point, and it does not cover everything.
Bank
Reconciliations for every account, with year-end statements or balance confirmations.
Parties
Ledgers for customers and suppliers, with confirmations for large balances.
Stock
Count sheets signed by the person counting, and how it was valued.
Fixed assets
Register, invoices for additions, sale records and depreciation working.
Taxes
GST returns matched with the books, TDS returns and challans, and any notices received.
Payroll
Salary registers, and PF and ESI records where applicable.
Loans and contracts
Sanction letters, statements and key agreements.
Company records
Minutes, statutory registers and past filings, if you are a company.
Do you need an audit at all?
- Companies: every company needs a statutory audit, whatever its size. Under section 139(6) of the Companies Act, the Board appoints the first auditor within 30 days of registration.
- Tax audit: under section 63 of the Income-tax Act, 2025, generally where business turnover exceeds ₹1 crore (₹10 crore with low cash dealings) or professional receipts exceed ₹50 lakh. See income tax returns.
- LLPs and others: depends on size and rules. Deepak Mittal can check which apply to you.
- Others who may ask: a bank, investor or regulator may need audited accounts or specific certificates.
What good support looks like
- A clear list of what is missing, before the auditor arrives
- Schedules that tie directly to the trial balance
- A single organised file, indexed for the auditor
- Honest flags on anything unusual, rather than something hidden
Be cautious of anyone who offers to "adjust" figures to get through an audit. Directors and proprietors remain responsible for the accounts.
Questions to ask
- What will you prepare, and what stays with me?
- Have you supported audits for my kind of business?
- Are you independent from my auditor, or connected with them?
- How do you handle items you cannot explain?
What affects the fee
State of the books, volume, stock, how many schedules are needed, and any backlog. Audit fees are separate, and are agreed with the auditor, who for a statutory audit must be a practising Chartered Accountant.
Sources checked, November 2026
- Companies Act, 2013, sections 139(6) and 141(1) (consolidated copy at ca2013.com, read 10 November 2026); ICAI Code of Ethics (opens in a new tab) on CAs in practice (read at source); Income-tax Act, 2025, Gazette copy (opens in a new tab), sections 63, 2(1) and 515(3)(b) (read at source, November 2026), which define the tax auditor as a Chartered Accountant holding a certificate of practice
- Independence rules were not reviewed in detail. Ask your auditor
Preparing for an audit?
Tell us your entity type, year-end and how ready your books are. For the audit itself, you need an eligible auditor.
