Audit And Assurance
Audit And Assurance
Audit in simple words means an independent review and evaluation of an entity’s financial statements prepared by the management and expressing an opinion on the same. An independent auditors’ opinion exudes trust & reliability to various stakeholders in the entity which forms the basis on which value is added and markets are built. The aim of an audit is to highlight whether the financial statements represent a true and fair view of the entity and whether the financial statements are prepared in accordance with the applicable reporting standards and in compliance with the regulations applicable.
Assurance services include periodic review of financial statements, interim financial reporting, conducting due diligence, agreed upon procedures and other services. The objective of assurance is to facilitate the decision-making process within the entity.
At MBM, we perform audit & assurance services with the highest ethical and professional standards. Building trust and being transparent forms the base of the solutions that we offer. Our team has vast experience in auditing and assurance spread across various business segments. Our Audit and Assurance methodology is aligned to the global auditing and assurance standards.
Staying committed to our tagline ‘Partner for your growth’, we strive to deliver beyond numbers and partner with our clients in their strategic planning and decision-making processes thereby supporting them to achieve their organizational goals.
Our Services
STATUTORY AUDITS
Statutory audits or financial audits are usually conducted at the end of the financial year of an entity. These audits are done in compliance with banking or regulatory requirements. In a statutory audit we examine the financial statements prepared by the Management along with the accompanying notes to the accounts and other disclosures and confirm whether the same present a true and fair view of the entity.
We, at MBM dedicate our time to understand our client’s nature of business and identify the risk exposure and key performance indicators. Our audit procedures are designed to check the adequacy of internal controls and highlight shortcomings in their existing systems. Our endeavor is to provide our clients with maximum insights on their business in a cost effective and efficient manner. Our team is committed to deliver suggestions which assist our clients in their organizational decision-making, mitigate risks, improve compliance, and facilitate improvements in operations and controls. We ensure regular correspondence with our clients thereby guaranteeing swift resolutions to any concerns highlighted by them.
INTERIM FINANCIAL REPORTING
Interim financial statements are financial reports produced by entities, covering a period of less than one year. Shareholders and other stakeholders can track the performance of the entity periodically through these interim financial reports. Interim financial reports also enable an entity to compare its performance with budgets or forecasts prepared thus understanding any material deviation and probe the reason for such deviations. Though opinions are not expressed on the interim financial statements, their review entails checking and ensuring compliance with regulatory and reporting frameworks.
We at MBM ensure quality reviews of interim financial statements in line with the International Standards on Review Engagements as the conclusion of the interim review plays a vital role in the scope of year end audit procedures. We offer solutions and guidance to the client by aligning their reporting practices with the best practices in the industry.
IFRS ADVISORY SERVICES
International Financial Reporting Standards (IFRS) assumes a quintessential role in financial reporting as countries across the globe are adopting them. IFRS offer a common language for financial reporting across the globe. These standards are revised periodically, and new standards are introduced by the Governing body, to improve transparency in financial reporting.
Our team at MBM, ensures that our clients are updated on the latest developments in financial reporting and provides continuous support in this regard. Our team, with their vast industry experience and technical expertise in financial reporting can engineer reporting processes without much stress.
What We Offer
- Assistance in adoption and implementation of new/revised standards
- Assistance in identification of relevant IFRS applicable to the entity for Financial reporting.
- Imparting training to develop the skillset of the finance team
- Assisting in the development of a knowledgebase which can serve as a tool in the preparation of Financial Statements in line with IFRS.
- Assistance in setting up internal controls and developing a control environment necessary to comply with IFRS reporting requirements.
FINANCIAL REVIEWS
Financial review provides less assurance compared to an audit and is done in cases where a moderate level of assurance is acceptable. Financial reviews can be done for any period. Financial reviews are usually conducted on behalf of the Management for their internal purposes and statements compiled from such reviews are not usually presented to third parties.
MBM offers financial review services as a part of assurance services, where we provide our clients with a comprehensive review of their books of accounts and express our opinion on the same. We conduct our review using a mix of analytical and investigative procedures. We also ensure compliance of the books of accounts with regulatory and reporting requirements. We ensure that financial reviews are conducted in accordance with the International Standards on Review Engagements (ISREs). This policy is strictly followed to ensure that the engagement is conducted with independence, integrity and objectivity, with strict abidance to the Technical standards.
AGREED UPON PROCEDURES
‘Agreed upon procedures or AUP’ are a set of procedures of audit nature agreed between the client and the practitioner. Objective of the engagement is to come up with a report on factual findings, which is restricted to the agreed parties unlike an audit report which is a public document. In cases where a statutory audit is not required or assurance is needed only in respect of a particular segment of the Financial Statement (e.g. Cost, revenue, accounts payable etc.), client can agree for an AUP engagement to be done.
We at MBM undertake to carry out Agreed upon procedures including Cost audit, revenue audit and so on in accordance with the International Standard on Related Services (ISRS) with utmost adherence to the ethical and professional standards issued by the International Ethics Standards Board for Accountants. We deliver tailor made solutions to the varied requirements of our clients.
DUE DILIGENCE
Due diligence in common terms means reasonable steps of caution or ‘exercise of care’ to avoid committing an error.
Due diligence in financial terms, denotes a detailed investigative assessment and analysis of financial and non-financial information of an entity prior to making a significant business decision, so that the parties affected by the decision are not at a risk of a material financial or non-financial loss.
Due diligence involves a comprehensive study of an entity which enables to determine:
- Whether the entity conforms to its stated objectives
- Risks involved in the underlying transaction
- Whether all compliances and regulations are adhered to
- Reduce the risk of uncertainties after undertaking the transaction
We at MBM, work in resonance with the business environment and develop optimal analytical tools for risk identification and evaluation. This ensures that our methodology gauges the risk associated with each stage of the decision-making process in its entirety thereby reducing the risk to minimal level. We help our clients by providing due diligence solutions in the following areas:
- Financial due diligence
- Operational due diligence
- Compliance & regulatory due diligence
- Legal & Tax due diligence
- Feasibility studies & capital budgeting
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