An audit should strengthen the file before anyone else inspects it.
We audit manufacturing companies with attention to operating reality, financial-reporting risk and the evidence that Income-tax and GST authorities may test later.
Assurance, controls and scrutiny readiness in one process.
A statutory opinion is the formal output. The underlying value is a disciplined examination of the balances, controls, documentation and management judgements that drive the financial statements.
For manufacturers, we connect books with production, inventory, dispatch, customer programs, vendor terms, capex and statutory data. Weaknesses that could later become tax or GST disputes are raised with management rather than left buried in schedules.
What “scrutiny-ready” means
- Material ledger balances reconcile with statutory returns and source records
- Unusual transactions have agreements and documented business purpose
- Inventory and production data explain the financial outcome
- Management estimates have a traceable basis
- Tax and GST positions are supported rather than assumed
- Open issues are visible to the promoter before filing
More depth than a one-line service list.
The exact scope depends on the reporting framework, size and risk profile of the entity, group requirements and applicable independence rules.
Statutory audit
- Companies Act audit
- Risk and materiality planning
- CARO reporting
- Internal financial controls reporting
- Going-concern and covenant review
- Board and audit-committee communication
Tax audit & return readiness
- Clause-level tax audit review
- Books-to-return reconciliation
- TDS and disallowance testing
- MSME payment reporting
- Related-party and specified-person review
- Depreciation and capital-expenditure mapping
Internal financial controls
- Process and risk-control matrices
- Walkthroughs and control testing
- Procure-to-pay and order-to-cash
- Inventory and fixed-asset controls
- Close and reporting controls
- Remediation tracking
Ind AS & accounting advisory
- First-time Ind AS adoption
- Financial-instrument measurement
- Leases and employee benefits
- Business combinations and valuation inputs
- ECL and impairment
- Disclosure and transition support
Group reporting
- Component reporting packs
- Local-to-group reconciliations
- Group-auditor coordination
- Inventory-observation reporting
- Intercompany balances and eliminations
- Overseas parent reporting timetables
Focused assurance work
- Agreed-upon procedures
- Inventory and working-capital reviews
- End-use and lender certificates
- Transaction and closing-account reviews
- Fraud-risk and exception analysis
- Management-requested control reviews
Where we spend audit attention.
Audit effort follows risk. The list below is tailored to the transactions and evidence patterns common in manufacturing.
Revenue & customer programs
Dispatch cut-off, rebates, price revisions, tooling, credit notes, warranties and customer deductions.
Inventory & costing
Physical verification, valuation, standard costs, overhead absorption, slow-moving stock, scrap and yield.
Capex & fixed assets
CWIP, capital advances, trial runs, borrowing costs, componentisation, useful lives and impairment indicators.
Purchasing & vendors
Three-way matching, related parties, MSME classification, job work, vendor balances and unrecorded liabilities.
GST & tax data
Turnover and ITC reconciliations, e-invoices, e-way bills, TDS, statutory dues and deferred tax.
Provisions & estimates
Warranty, employee benefits, claims, obsolescence, impairment, expected credit loss and contingencies.
Borrowings & covenants
Drawing power, end use, security, covenant compliance, classification and effective interest.
Related parties & group matters
Approvals, pricing, guarantees, loans, intercompany balances, transfer pricing and consolidation reporting.
Plan early. Test where risk sits. Close with evidence.
An audit is easier on the finance team when expectations, schedules and decision points are visible from the start.
Understand the business
Map products, customers, production, systems, ownership, tax profile and prior-year issues.
Follow the risk
Perform control and substantive work with clear evidence requests and issue tracking.
Resolve judgements
Discuss estimates, unusual transactions, tax positions and disclosure gaps with management.
Leave a reviewable file
Complete reporting, communications, reconciliations and documentation of final conclusions.
What this audit approach does—and does not do.
Can an audit prevent Income-tax or GST action?
No. No auditor can prevent an enquiry or guarantee its outcome. A disciplined audit can identify unsupported positions and missing evidence before they become avoidable additions, interest or penalties.
Does the firm audit Ind AS companies?
Yes, subject to engagement acceptance, competence, independence and scope. The firm also supports first-time adoption and complex accounting analysis in non-audit engagements.
What does peer reviewed mean?
Joneja & Co. is a peer reviewed Chartered Accountancy firm. Peer review addresses the systems and procedures applied to assurance work under the ICAI framework.
Start before the year-end timetable becomes urgent.
Share the entity structure, reporting framework, turnover range, locations and present auditor position so the applicable professional requirements can be assessed.