Audit for Investor Due Diligence: Audited Accounts That Hold Up, When Investors Ask Questions

No. An audit gives an opinion on financial statements. Due diligence is a buyer-side review of risks and quality of earnings. The audit provides a reliable base for diligence, but we do not present one as the other.

Start before the term sheet is signed if you can. Audit adjustments are easier to explain before an investor sees the numbers, and the cap table can be reconciled in time.

We review the accounting treatment and disclosure of ESOPs as part of the audit. Valuation reports from a registered valuer may be needed separately.

Yes. Documents are shared online and review calls run on phone or video, so most audits can be run remotely. Work that needs physical presence, such as stock verification or branch visits, is planned around the location. Our office is at Topiwala Centre, Goregaon West, Mumbai.

A statutory audit is required by the Companies Act (or the LLP Act) and ends with an opinion on whether the financial statements give a true and fair view. A tax audit under section 44AB of the Income-tax Act checks your books against tax law and is reported in Form 3CA/3CB with Form 3CD. An internal audit is a review of controls and processes during the year, and it is mandatory only for the classes of companies listed in Rule 13 of the Companies (Accounts) Rules, 2014.

Yes. Every company must appoint an auditor and get its accounts audited every year, whatever its turnover and even if it has little or no activity. Small company status relaxes some reporting requirements, not the audit itself. A new company's board must appoint its first auditor within 30 days of incorporation.

A business needs a tax audit if turnover is above Rs 1 crore (Rs 10 crore where cash receipts and cash payments are each 5% or less), a professional if gross receipts are above Rs 50 lakh, and certain presumptive-scheme cases also trigger it. For AY 2026-27 (FY 2025-26), CBDT's press release of 28 September 2026 moved the audit report date from 30 September to 21 October 2026 and the return date for covered audit cases from 31 October to 21 November 2026. Transfer pricing cases follow separate dates, so confirm which group you fall in.

It is mandatory for every listed company. An unlisted public company needs one if paid-up capital is Rs 50 crore or more, turnover is Rs 200 crore or more, bank or financial-institution borrowings exceed Rs 100 crore, or deposits are Rs 25 crore or more. A private company needs one if turnover is Rs 200 crore or more or borrowings from banks and financial institutions exceed Rs 100 crore, tested on the preceding financial year. Smaller businesses can adopt it voluntarily, and some lenders and investors ask for it.