Function of an outside auditor and main provision of VAT

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 .