Audit and Assurance

“Guidwell is committed to delivering independent, efficient, effective, quality, comprehensive audit and assurance services.”

Our core philosophy is building trust among stakeholders, shareholders, regulatory authorities, or creditors.

Our services offer a clear snapshot of your company’s financial health, enabling management to make informed decisions for enhancing the company’s potential in both local and global markets.

Our Approach

The firm’s approach involves a thorough understanding of the client’s business, integrating rigorous risk assessment and diagnostic processes into tailored audit procedures as per the industry standard.

Our primary focus areas are

Deep understanding of client's business
Robust risk assessment and diagnostic process
Tailored audits procedures
Quality-focused
Efficiency and compliance
Consistent adherence to pre-determined timelines

Why choose Guidwell International?

Prioritizing active engagement to ensure compliance with statutory and regulatory requirements while delivering constructive, value-added outcomes.
Our auditing services go beyond mere compliance and align with your organizational objectives to drive impactful outcomes.
Over 15 years of successful audits conducted across diverse regions, including India, the US, and International territories, establishing a reputation for high-quality audits and client satisfaction.

Our professional audit services include

Statutory Audits
Audit / Review as per SEBI listing guidelines
Internal / Project / Concurrent Audits
Tax audits
Stock audits
Due Diligence
Forensic / Risk Audits
Proprietary / Management / Process / Special Purpose Audit

Attestations

Guidwell is dedicated to delivering attestation services that comply with the strict rules set by the Public Company Accounting Oversight Board (PCAOB) and American Institute of Certified Public Accountants (AICPA) in United States Institute of Chartered Accountants of India (ICAI), and the Canadian Public Accountability Board (CPAB).

We elevate your business credibility with our following expert attestation services

Our commitment to these standards ensures thoroughness, accuracy, and reliability in every attestation engagement.

Our Team of Experts

Our Partner-led team with extensive experience proficiently addresses all accounting and regulatory reporting requirements.
The integrated team is well-versed in your industry and includes CAs, CPAs, ACCA, finance experts, and tax advisors.
Partners from 'Big Four' backgrounds, backed by 20+ years of practical SEC client work.
Guidwell understanding translates into efficient audits and financial reporting that meets compliance standards.

FAQs

1 What is the meaning of assurance services?

Assurance services refer to professional services provided by auditors or other experts that aim to enhance the reliability and credibility of information or processes for stakeholders. These services provide a high level of confidence that the subject matter (such as financial statements, performance, or compliance) is accurate, complete, and free from material misstatements.

2. What is the purpose of assurance?

The purpose of assurance is to provide an independent and objective assessment of an organization’s financial statements and related records to ensure that they are accurate, reliable, and in compliance with applicable accounting standards and regulations.

3. What is the role of assurance?

Assurance refers to the level of confidence an auditor provides regarding the accuracy and fairness of an entity’s financial statements. The role of assurance in an audit is to increase the reliability of financial information, helping stakeholders (such as investors, regulators, and management) make informed decisions.

4. Do you perform audits for public companies in the United States?

Yes, Guidwell is registered with the Public Company Accounting Oversight Board and is licensed to audit companies listed in the United States, including broker-dealers. We perform an audit of financial statements of companies registered with the SEC or trading over OTC or intended to get registered with the SEC.

5. How is my business eased after getting my accounts audited from Guidwell?

Through robust audit tools, resources, and procedures, MAS delivers high-quality audit services, adhering to the highest standards of independence, ethics, and professional objectivity while applying technical excellence. As part of our strategy, we continuously assess the service performance and delivery to clients for continuous improvement in our audit quality. We provide our clients with effective methods through which they can do their business more easily and enhance legal compliance.

6. What do you charge for an audit of a company?

Our fee for an audit of companies in India or the US depends on the complexity of the business, time, and resources involved. Please feel free to reach us for a quote.

7. Do auditors get audited?

Yes, they do. The governing bodies oversee the company’s audits to protect investors and the public interest by promoting informative, accurate, and independent audit reports. They need to ensure proper audit documentation is maintained for every audit.

8. What are the most commonly sought assurances?

The three types of assurance services are

Audit Services: Evaluating financial statements for accuracy,

Review Services: Providing limited assurance through inquiry and analysis and

Other Assurance Services: Ensuring compliance or reliability of non-financial information like sustainability reports.

9. Which is better, Audit or Assurance?

Audit is a more specific and rigorous service, particularly suited for providing an opinion on financial statements.

Assurance is a broader concept that includes audits and other services. It provides varying levels of confidence on a range of subjects.

Audits are better when you require a high level of assurance on financial statements, typically for regulatory compliance or to satisfy external stakeholders (investors, regulators). Assurance is better when you need broader services, covering areas like internal controls, compliance, or performance reviews, with a range of assurance levels.

10. What is the standard setting process of Audit and Assurance?

The Standard Setting Process for Audit and Assurance involves the following key steps:

Identify Need: Recognizing the need for new or updated standards.
Develop Proposals: Professional bodies (e.g., IAASB, FASB) draft new or revised standards.
Public Consultation: Drafts are published for feedback from stakeholders.
Revise & Analyze Feedback: Adjustments are made based on the feedback received.
Approval & Finalization: The standards are finalized and officially approved.
Implementation: Auditors must follow the adopted standards in their work.
Ongoing Review: Standards are periodically reviewed and updated as needed.

11. What is the concept of independence in auditing?

Independence in auditing is a fundamental principle that ensures the auditor can perform their work objectively and without any bias or conflict of interest. Independence is crucial for maintaining the credibility and reliability of the audit process, as it helps ensure that the auditor’s judgment is not influenced by personal interests or relationships with the client.

12. What is the “Financial Reporting Framework” (FRF)?

Under U.S. GAAP, the financial reporting framework is a comprehensive system of accounting standards that dictates how financial statements should be prepared and presented. It includes rules and guidelines developed by the FASB (Financial Accounting Standards Board), a focus on accrual accounting, and specific requirements for the recognition, measurement, and disclosure of financial information. This framework ensures that financial statements are consistent, comparable, and transparent, providing reliable information to users such as investors, creditors, and regulators.

13. What is Audit Risk?

Audit risk is the risk that an auditor may issue an incorrect opinion on the financial statements. Specifically, it refers to the possibility that the auditor may fail to detect material misstatements in the financial statements, either because of errors or fraud, and thereby provide an inappropriate audit opinion (i.e., unqualified opinion when there should be a qualified, adverse, or disclaimer opinion). Audit Risk is a multiplication of the elements discussed in (a) & (b) below:

The Risk of Material Misstatement (‘ROMM’), which is (Inherent risk * Control Risk); and
Detection Risk (‘DR’).

The auditor’s objective is to reduce audit risk to an acceptably low level by performing appropriate audit procedures.

14. What is the role of a QA auditor?

A QA (Quality Assurance) auditor plays a critical role in evaluating and ensuring that processes, systems, and operations meet defined quality standards and regulatory requirements. While the role can vary depending on the industry, the core responsibilities generally involve assessing and improving the quality of products, services, and operations.

15. What is an auditing and assurance standard by IAASB?

The International Auditing and Assurance Standards Board (IAASB) sets global standards for auditing, assurance, and related services. These standards are designed to ensure that audits and other assurance engagements are performed consistently, with high quality, and in compliance with international best practices.

16. What is the nature, timing, and extent of audit procedures (NTE), and what approach does Mercurius follow for efficient audits and financial reporting that meets compliance standards?

The auditor decides the nature, timing, and extent of audit procedures based on the item’s materiality, the associated risks, and prior experiences. It relies on the professional judgment of an auditor.

Nature refers to the type of procedures to be selected and used, such as compliance, substantive, inspection, observation, and confirmation.

Timing involves deciding when to perform the above work & the time allocation for each task.

Extent indicates how much work is to be performed, i.e., whether 100% checking, sample selection, or selective basis.

Our audit and assurance services help determine the most effective and efficient audit procedures tailored to your needs based on your industry and company. We conducted the audit with the utmost independence to ensure unbiased results.

17. What is the objective of Audit?

An audit (examination) is conducted with the objective of providing an opinion on the financial statements and assessing whether financial statements:

Are prepared by management to give a true and fair view of financial position and performance.
Comply with the relevant Financial Reporting Framework.
Audits are necessary to protect your business and encourage its growth. They include features such as early warnings, open communication, and pragmatic resolution of issues.
It helps to ensure that the organization’s financial statements reflect its true and fair view of financial position and performance.
Audits contribute to verifying a Company’s adherence to relevant regulations, laws, and Generally Accepted Accounting Principles (GAAP).
It helps to detect errors and promote transparency and accountability in financial reporting. This builds trust among stakeholders.

18. What are the different types of Audits?

Various types of audits are done to provide reliability to users. Here are a few of them that auditors most commonly do.

Statutory Audit– A statutory audit is an audit by an independent auditor to determine whether the financial statements present fairly with the applicable accounting standards by examining the information such as bank balances, account receivables, and financial transactions that occurred during the period under audit.
Internal Audit — An internal audit is an audit of internal control systems to identify the weaknesses in the organization’s processes and control environment to prevent any harm to the organization or its stakeholders. Other focus areas include asset safeguarding, adequate authority division over key control areas, and compliance with internal operating policies and guidelines.
Stock Audit — A stock audit is an evaluation of the company’s physical inventory that involves counting and valuing, comparing the quantities on hand with the records, and thereby identifying any discrepancies. Being carried out on behalf of banks and financial institutions, it aims to objectively ensure that the security against which funds are lent by the bank is safe and valued correctly.
Due Diligence — It is a process used by potential investors to assess the risk involved in the entity. It includes examining the figures and comparing them, which helps the investors to understand the business’s prospects.
Tax Audit — It is an examination of an organization’s tax return to verify its accuracy and compliance with tax laws. The audit process involves reviewing financial records, transactions, and other relevant documentation to ensure that the reported tax information is complete and correct.

A sound understanding of Indian and US laws, regulations, and accounting practices enables Mercurius to assist clients in critical issues like conducting financial, legal, and accounting reviews in mergers, acquisitions, and investments.

19. What is the Audit opinion/Audit Report?

An audit opinion or audit report is a formal statement issued by an independent auditor after evaluating an entity’s financial statements. Under U.S. Generally Accepted Accounting Principles (GAAP), the audit opinion assesses whether the financial statements of an entity are fairly presented, in all material respects, in accordance with U.S. GAAP.

The audit opinion is a key component of the audit report, which is typically included in a company’s annual financial filings, such as the 10-K. It provides assurance to shareholders, regulators, and other stakeholders about the reliability of the financial statements.

20. What are “audit procedures”?

Audit procedures are methods or techniques that auditors use to obtain audit evidence and form an opinion regarding financial statements.

Auditors perform audit procedures to test various assertions related to the financial statements they are testing.

Audit procedures may include:

Audit Materiality
Confirmations
Payroll
Representation & Communication Letters
Fixed Assets
Audit Sampling

21. What is the difference between an internal audit and a statutory/external audit?

Internal Audits have a broader scope and cover all aspects of an organization, including financial processes, operational efficiency, compliance with policies and procedures, risk management, and IT systems. They are conducted by internal staff, which means they are less independent. Internal audits focus on risk management, internal controls, and operational efficiency.

Statutory / External Audits focus primarily on financial statements. The primary purpose of an external audit is to provide an independent and objective opinion on whether an organization’s financial statements are presented fairly, in all material respects, in accordance with applicable accounting standards (such as U.S. GAAP or IFRS). External, independent auditors conduct them.

22. What are the different aspects covered in the financial audit?

Here is the checklist of all the aspects covered in the Financial Audit.

Assessing the accounting systems and internal controls to ensure they are suitable for the business and help in the effective recording of transactions.
Reviewing the system and procedures to identify any inadequacies that could allow fraud and undetected errors.
Verify the arithmetical accuracy by verifying postings, balances, etc.
Verify the authenticity and validity of the transactions.
Distinguishing between capital and revenue items and ensuring income and expenditure correspond to the correct accounting periods.
Comparing the balance sheet and profit and loss account statements.
Verifying the title, existence, and value of the assets appearing in the balance sheet.
Verify the liabilities stated in the balance sheet.
Evaluating the result shown by the profit and loss statement to ensure the results are accurate and fair.
For company audits, confirm that the statutory requirements have been complied with.
Reporting to the appropriate authority whether the statements of account examined present a true and fair view of the performance and profit and loss of the organization.

23. How is an Audit conducted?

An audit is generally carried out by a registered auditor who must comply with certain standards. Mercurius is registered under the PCAOB and ICAI.

For a financial audit, the company’s financial statements are prepared in accordance with the appropriate legal and financial requirements. The report is then approved internally. The auditors will need to obtain an understanding of the company and its activities and consider outside factors that may have affected any business during the reporting period.

The auditors will identify, consider, and evaluate any risks relating to the financial performance or position and any internal controls the organization has considered appropriate to mitigate those risks.

The auditor will then consider what has been done to ensure the financial statements are accurate and examine supporting evidence based on the risks and controls identified.

Key points about the Mercurius audit process:

Understanding the business: Auditors begin by gaining a thorough understanding of the company’s operations, industry dynamics, and internal controls to identify potential risks impacting financial reporting.
Risk assessment: Based on their understanding, auditors assess the key risks that could materially misstate the financial statements and develop audit strategies to address those risks.
Audit planning: A detailed audit plan is created outlining the procedures to be performed, areas to focus on, and the extent of testing required to gather sufficient evidence.
Fieldwork: This phase involves collecting evidence through procedures like:
Reviewing documents and records
Performing analytical procedures
Conducting interviews with management and staff
Performing physical inventory counts
Evaluation of controls: Auditors assess the effectiveness of the company’s internal controls to mitigate identified risks.
Reporting: Once fieldwork is complete, the auditor prepares an audit report outlining their findings, opinions on the financial statements, and any material weaknesses identified.

24. What is the concept of materiality in auditing the financial statements?

In auditing, materiality refers to the significance of financial information or misstatements in the context of the overall financial statements. This concept helps auditors determine whether a discrepancy, error, or omission is large enough to influence the decision-making of users of the financial statements (such as investors, creditors, or regulators). Materiality is considered when determining the nature and extent of audit procedures.

25. Is the auditor responsible for finding out fraud in the entity?

The auditor is not responsible for detecting fraud in the entity. However, auditors are responsible for designing and performing an audit that provides reasonable assurance that the financial statements are free from material misstatements, whether caused by error or fraud.

Auditor’s Obligation Regarding Fraud:

While auditors are not required to uncover all fraud, they are required to plan and perform the audit with an attitude of professional skepticism, which includes considering the possibility of fraud.
The auditor must be alert to fraud risks, including management override of controls (i.e., when management intentionally manipulates the financial reporting process) and fraud by employees.

If the auditor identifies or suspects fraud during the audit, they are required to perform additional procedures to investigate and assess the nature and impact of the suspected fraud. Procedures include Inquiring of management and others, analytical procedures, testing controls, and Corroboration of evidence.

26. What is Audit Evidence?

Audit evidence refers to the information collected and evaluated by an auditor to form the basis for their audit opinion on an entity’s financial statements. It consists of all the documents, records, and other information that the auditor gathers during the audit process to assess whether the financial statements are presented fairly in accordance with the applicable accounting framework (e.g., U.S. GAAP or IFRS).

27. What type of audit evidence is to be obtained by the auditor?

Auditors should obtain sufficient and appropriate audit evidence by performing audit procedures.

Sufficiency measures the quantity of audit evidence based on the risk of material misstatement and the quality of such audit evidence.
- Appropriateness measures the quality of the audit evidence, i.e., its relevance and its reliability.

These two terms are interrelated and interdependent. Higher reliability may require less evidence.

An auditor combines various types of audit evidence to form a complete understanding of the entity’s financial position and internal controls. The aim is to ensure that the financial statements are free from material misstatement, whether caused by fraud or error.

28. Do you possess adequate personnel, expertise, experience, material, and other necessary resources to audit my accounts?

Yes, our vast audit team consists of experienced Chartered Accountants, ACCAs, CPAs, specialized Audit Managers, and Article Assistants, all possessing sound knowledge of accounting and auditing principles and standards, taxation systems, legal framework, corporate compliance, risk assessment techniques, and automated auditing tools to fulfill our commitments on time and provide our clients quality in audit service.

29. Will the auditor prepare the financial statements?

No, an auditor needs to be independent and objective while performing the audit. It is important to understand that management is responsible for preparing financial statements, while the auditor is responsible for the opinion on those financial statements.

30. What does an auditor do?

Auditors perform independent evaluations to offer security that information, such as the financial statements, presents an accurate and fair view of a company’s financial performance and position.

Auditor access and analyze the following-

Adequacy and effectiveness of internal controls
Reliability and integrity of financial and operating information
Effectiveness and efficiency with which resources are employed

Accomplishment of established objectives and goals and,

Analyze the fiscal, operational, and administrative operations
Analyse systems established to ensure compliance with policies, plans, procedures, laws, and regulations that could significantly impact operations

At Mercurius, while conducting the audit, we ensure the points above are addressed, and we also take utmost care of the following:

Deep understanding of client’s business
Robust risk assessment and diagnostic process
Tailored audits procedures
Quality-focused
Efficiency and compliance
Consistent adherence to pre-determined timelines

31. What are the steps of an audit report?

The audit steps are based on the company, industry standards, and governing body. However, here is a common step that an auditor will follow in any audit.

Planning: Define scope, objectives, and methodology.
Notification: Inform relevant departments about the audit.
Opening Meeting: Discuss objectives and expectations with management.
Fieldwork: Collect evidence, test controls, and analyze findings.
Report Drafting: Prepare a draft report with findings and recommendations.
Management Response: Obtain feedback and action plans from management.
Closing Meeting: Review final findings and address concerns.
Final Report Distribution: Share the completed report with stakeholders.
Follow-up: Ensure corrective actions are implemented.

32. What is the purpose of attestation?

Attestation complies with the strict rules set by the Public Company Accounting Oversight Board (PCAOB). It ensures that organizations adhere to relevant laws, regulations, or internal policies and confirms that their operations meet required standards.

33. What is an attestation process?

In the Attestation process, the auditor verifies the authenticity of documents, such as signatures, identities, and document validity. It’s often required for documents that will be used in foreign countries.

34. What is attestation risk in the audit?

Attestation risk is the combination of three components:

Inherent Risk: The susceptibility of an assertion (like a financial statement item) to a material misstatement, assuming no internal controls. This risk is higher in areas that are more complex or prone to error.
Control Risk: The risk that the client’s internal controls will not prevent or detect a material misstatement. This occurs when internal control systems are ineffective or poorly designed.
Detection Risk: The risk that the auditor will not detect a material misstatement during their audit procedures. Even with well-designed audit procedures, some misstatements may still go undetected.

35. Who is eligible for attestation?

Only licensed auditors (Chartered Accountants (CAs)/Certified Public Accountants (CPAs) or Licensed Public accounting firms are eligible to perform attestation in an audit. These professionals must be registered with relevant regulatory bodies and comply with auditing standards.

Guidwell & Associates LLP is registered with the Public Company Accounting Oversight Board (PCAOB) and ICAI. It can perform independent audits and attestations in compliance with laws, rules, and professional standards applicable to public companies.

36. What is attestation service and its category?

There are three significant types of attestation services, which cover:

Examinations: A detailed review that provides a high level of assurance about the accuracy of the information.
Reviews: A less intensive assessment than an examination, offering moderate assurance.
Agreed-Upon Procedures: Specific procedures are requested by a client to verify particular aspects, with findings reported without assurance.

At Guidwell , we elevate your business credibility with our expert attestation services.

Reporting on pro-forma financial information.
Compliance attestation.
Agreed-upon procedures engagements.
Reporting on an entity’s internal control over financial reporting

Our commitment to these standards ensures thoroughness, accuracy, and reliability in every attestation engagement.

37. What is the difference between audit and attestation?

While both attestation and auditing involve assessments, Audit focuses on identifying gaps or risks within an organization’s processes. In contrast, Attestation evaluates how well the information meets predefined standards or criteria without necessarily uncovering unknown issues.

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