The
main job of an outside auditor engaged by the business owner is to
ensure that all financial statements of the company are presented in
fairly accurate manner in accordance with corporate law or financial
framework for the companies . The auditor makes sure that all bills
and documents are kept by the company for proper auditing services .
The service of audit gives confidence to business establishments in
the authenticity of the financial statements .
Before
presenting the financial statement of the particular business , the
auditor collects appropriate and sufficient
evidence in form of bills and receipts and then compares and confirms
until reasonable
assurance is obtained by them . This exercise
Auditing
services in Delhi NCR
of
observing bills of various transactions is very necessary part before
reaching the conclusion that there is no fraud or error in the
transactions.
Some
part of the auditing procedures include:-
-
gain understanding of the organization by inquiring about management and its business operations , financial reporting .
-
Understand the internal control system
-
testing the various documents to get the final balance sheet .
-
Performing procedures on both expected and unexpected variances in account balance .
-
Testing various papers to confirm the account balances .
Levy
of value added tax -
The
value added tax is levied at every stage . The levy is done on the
value added by the last seller of product . The seller than has to
pay the tax on the value that has been added to the gross value .
When a product changes hand at the time of selling and buying , there
is a provision for input tax paid at the same time . This is because
the same goods are also purchased for resell , or for making
another product or for packing purposes . The tax liability for the
seller at the time of selling of the product will be done on the same
lines as is presently done for sale tax act . Then the tax paid on
the purchase is deducted and net amount is claimed for refund by the
purchaser .
The
aim of the value added tax is to VAT
Consultants in Delhi NCR
remove the effect of lot of taxes levied on the product
before it comes to the final purchaser . The value added is simple
tax ,. has transparency and is consistent in form , structure and
approach .
