Audit & Assurance Services
Due to globalization of the Indian economy, the challenges of international competition
and ever increasing complexity of information flows have widened the financial,
operational, economic and business risks faced by Indian entities. Competitive pressures
and increased attention to corporate governance has enhanced the importance of enterprise
risk assurance function. With increasing regulatory requirements, disclosure norms
and the need for greater transparency in operations, stakeholders’ require assurance
beyond the traditional critique of numbers. Stakeholders have become more sophisticated,
aware and demand greater transparency and uniformity in presentation of financial
statements making Assurance a necessity.
Our Audit and Assurance service professionals provide a range of audit and advisory
services to assist clients in achieving their business objectives, managing their
risk and improving their business performance.
A comprehensive audit process is essential to extend credibility to the financial
information that stakeholders need to make sound business decisions. Our Audit services
extend beyond the conventional/traditional financial reporting function. We take
time to understand client’s business, its needs and blend this with the sectors
in which they operate. Seamless integration of business facts with experience allows
us to identify major risks and opportunities that may distinguish between roaring
success and complete disaster. We are committed to the highest professional ethics,
standards, and principles.
In India, there co-exist a number of special diversified corporate and non-corporate
entities such as Sole Proprietorship, Partnership Firm, LLP, AOP, BOI, Company,
Trust, Non-profit Organization, Co-operative Societies, etc. All these organizations
are regulated under various statutory enactments, which require financial assurance
The complexity of the regulatory environment coupled with risks faced by such organisations
calls for the need for greater transparency in disclosures, stricter liability and
accountability of executives and operational management towards the stakeholders.
In such an environment of competitive pressures and increased attention to Corporate
Governance the importance of Statutory Assurance has enhanced.
Lunawat is insightful to the needs of such organizations and uses its expertise
ensuring adherence with the provisions of applicable laws and their certifications.
Globalization has increased the complexity of principles, regulations, disclosures
and the cultures in which organizations operate. Increasing litigation, legislation,
and regulations carry important compliance implications.
A Statutory Audit of the financial statements requires an auditor to provide reasonable
assurance that the accounts and financials have been prepared in accordance with
the Generally Accepted Accounting Principles (GAAP) and Standards on Auditing (SAs),
and that they are free from misstatements and errors.
Lunawat uses a combination of tailor made systems and controls to obtain audit evidence
ensuring adherence with the provisions of Companies Act, 1956 across all organizations
including those that are held by the government, publicly listed and privately held.
It also fulfills the statutory assurance function for non corporate entities based
on the applicable statute and laws relevant to them.
Transfer Pricing Audits
The rising volume and variety of inter-company transactions and transfer
pricing regulations, accompanied by increased enforcement activities worldwide
have made Transfer Pricing a leading risk management issue for global
businesses. Transfer pricing has emerged as a critical success factor in
corporate strategic planning and executive decision-making. Companies focused
on growth and market leadership have recognized the important role transfer
pricing can play in addressing the corporate tax burden, enhancing operational
performance, reducing tax compliance exposure and increasing cash flow.
Our dedicated team
of trained professionals conducts the transfer pricing audit keeping in mind
the latest judicial pronouncements, amendments, circulars, notifications and
tax accounting standards notified by the CBDT, as applicable for publicly listed,
privately held, and other organizations as per the relevant provisions of the
taxation laws of India.
A Tax Audit in India involves an expression of the tax auditors’ opinion on certain
financial details, given by an assessee to enable an assessment of its tax, by the
Tax Authorities. The said requirement is required under the provisions of Income-tax
Our dedicated team of trained professionals conducts the tax audit keeping in mind
the latest judicial pronouncements, amendments, circulars, notifications and tax
accounting standards notified by the CBDT, as applicable for publicly listed, privately
held, and other organizations under the relevant provisions of Income Tax Act, 1961 and related rules.
A VAT Audit in India involves an expression of the auditors’ opinion on certain
financial details, given by a dealer registered with VAT authorities to comply with
the provisions of the VAT Laws. As VAT is a state subject, the VAT audit compliance
varies from state to state.
Our dedicated team of trained professionals conducts the VAT audit keeping in mind
the latest judicial pronouncements, amendments, circulars and notifications as applicable
to a dealer registered under relevant VAT authorities.
In today’s rapidly changing organization’s structures, growing statutory compliances
and complex business environment management assurance is very critical for strong
corporate governance, risk management, effective internal control and efficient
We assist in effectively managing business risks by ensuring Flawless Processes,
Effective Controls and complete compliance to Internal and External Policies, Guidelines
and Regulations. These services are tailored to meet individual needs and provide
effective support to management in meeting the challenges and opportunities presented
by today’s complex business environment.
Our services enable our clients to effectively coordinate their growth with the
quality and the operational challenges faced by them.
Risk management is a big concern for both audit committees and senior management
in corporate internally. Companies today need experienced internal auditors to address
concerns in risk management, enhance internal controls, execute business plans and
meet governance responsibilities.
Apart from the statutory compliance, internal audits provide a number of important
services to company management. These include detecting and preventing fraud, testing
internal control, and monitoring compliance with company policy and government regulation.
Smaller companies may require these functions even more than large companies. A
small business simply cannot afford employee fraud, waste, or a government fine.
Establishing an internal audit function provides a vital step in the growth of a
Our experienced audit professionals take a risk-based approach to internal audit
with a view to help clients improve performance and operating efficiency. We go
beyond traditional fundamentals and add tangible value. We work to build internal
audit into a strategic and productive tool in today's corporate governance environment.
Internal Controls and Compliance Audits
The present day complex business and regulation environment has made it essential
that a comprehensive and critical review of the internal controls and policies of
an organization is done to ensure that leakages in management and statutory compliances
A review of the internal controls and compliances is a systematic independent appraisal
activity done for an organization to review whether these are commensurate with
the nature and size of the organization. It entails, a review of the entire operations,
evaluating the actual performances in comparison with predetermined targets. This
identifies the cause of variances and helps to formulate corrective actions, providing
a comprehensive insight into the functioning and effectiveness of processes to ensure
compliance to regulatory requirements.
Compliance audit is a critical component of the internal control process for any
business and a prerequisite for assessing compliance with corporate performance
standards. Whether it is compliance with internal corporate procedures or external
regulatory requirements, effective internal auditing is the cornerstone of compliance
management and continuous improvement. Effective compliance management protects
and enhance clients’ brand and reputation by helping them avoid the adverse affects
of non-compliance such as: litigation, fines, prosecution, bad PR, and the risks,
costs, liability, and damage to brand reputation associated with non-compliance.
As part of Compliance Audit, we undertake a complete review of all tax and statutory
compliance, including procedural requisites, related to income tax, corporate laws,
indirect taxes, etc. and provide a comprehensive report to the clients on the existing
status of the compliance along with recommended improvements.
Today the world is moving towards better systems and processes, to ensure an organization
is strong enough to weather the myriad changes of a dynamic environment. The global
shrinkage of the world has made businesses’ rethink their strategy with a fresh
perspective not only on compliances with domestic laws but also with global procedures.
A review of processes and systems becomes indispensable in such an environment.
We conduct a review of systems and process within organizations to critically review
that the operations at various levels are flawlessly followed, ensuring effective
controls and operating efficiency. We constantly re-engineer our review procedures
to meet the increasing expectations of stakeholders and management by navigating
the new risk landscape, providing deeper insights and foresight enabling them to
cut through the clutter.
The results are reviewed and the key findings along with recommendations are presented
to the management of organizations, advising them off continuous improvement strategies.
The Socio Assurance services offered by Lunawat aims to supplement the conventional
audit of government departments and agencies, NGOs, corporate entities etc. to understand
and improve their performance as perceived by the stakeholders in the social context.
Social assurance is a way to document and hold an entity accountable for its social
and ethical business practices. It is a process of understanding, measuring, reporting,
and most importantly improving the efficiency and effectiveness of the local governance.
It is also a way to assure the donor agencies granting the aid of the achievement
of the social cause within established budgets and processes.
Social Audits is a process of evaluation and reporting which is similar, in some
respects to a financial audit but focuses on social performance rather than financial
performance. It is a tool for evaluating how satisfactorily an organization has
discharged its social responsibility. Social Audit is a reform tool aimed at strengthening
accountability and transparency in the implementation of projects and policies.
It is a method for organization to plan the internal and external consequences of
the organization’s social and commercial operations. Social audits are further gaining
importance amongst stakeholders due to compliance to be made by the corporate of
their corporate social responsibility under the Indian Laws.
We conduct our audit in a way so as to fulfill both, financial reporting and social
responsibility. Our audit not only focuses on financial records and their scrutiny
but it is much more holistic which involves measuring, understanding, and improving
the social performance of the organization as a whole. We ensure transparency, reduce
leakages, force proper spending of funds, generate trust and peace, and create demand-led
improvement in services.
We understand and co-relate the concept of corporate social responsibility with
our audit engagement to establish a basis of credibility, confidence, and trust
in the eyes of the stakeholders, management, and society.
Special Audits & Assessments
India is a developing nation, plagued with problems of illiteracy, malnutrition,
low human health index, women’s empowerment, slow infrastructure development, etc.
Organizations like the World Bank, United Nations, etc. in conjunction with the
developed countries of the world give aid to India for such projects ensuring inclusive
and sustainable growth. Indian Government also gives aids to various organisations
and NGOs for eradication of such problems.
The donor often requires the agency receiving aid to be responsible for the achievement
of the social cause within established budgets and processes for their use. An evaluation
of the performance of the organization against these is made mandatory.
We examine and review the standards set not only in terms of the achievability of
the monetary targets but also in terms of the actual deliverables of the entity
in terms of social cause achieved. Thus the audit conducted by us goes beyond the
conventional audit, which merely involves a scrutiny of financial transactions and
books of accounts.
The firm’s fundamental objective in undertaking such audits is to contribute to
the inclusive growth envisaged by the Donor Agencies for a better India.