An Overview
Certification and attestation services, One of the most ultra-careful & vital services of professionals is the issuance of certificates to their clients needed for several purposes under different laws, rules & regulations. Broadly, businesses require certificates based upon the nature of the entity, the events being pleased by them under the law, any financial arrangement with banks or the financial institutions, getting benefit & various deductions under different statutes and periodical compliances of applicable rules & regulations.
Certification services are typically related to financial reporting and accounting standards. They involve reviewing and validating financial records, statements, and reports to ensure they comply with regulatory requirements and generally accepted accounting principles. The primary purpose of certification services is to provide assurance to stakeholders that the financial information presented is accurate, reliable, and trustworthy.
Fields where Certification is provided by a Chartered Accountant
Some of the key certification services provided by a chartered accountant may include:
- Audit Services: An audit is an independent examination of a company's financial statements and records. The purpose of an audit is to provide an opinion on whether the financial statements are presented fairly, in accordance with the applicable accounting standards. Chartered accountants are often engaged to conduct audits for both public and private companies.
- Review Services: A review is a less intensive examination of a company's financial statements compared to an audit. In a review engagement, the chartered accountant provides limited assurance that the financial statements are free from material misstatement.
- Agreed-Upon Procedures: Chartered accountants may also be engaged to perform agreed-upon procedures (AUPs) on specific financial information. AUPs are tailored to meet the specific needs of the client and may involve testing certain financial transactions, account balances, or internal controls.
- Compliance Services: Chartered accountants may also provide certification services related to compliance with specific laws and regulations. For example, they may provide certification services related to tax compliance or regulatory compliance for certain industries.
In addition to the above, chartered accountants may also provide certification services related to internal controls, financial forecasting, and risk management.
Overall, the certification services provided by a chartered accountant are essential for maintaining the integrity of financial reporting and ensuring that businesses and organizations comply with relevant accounting and regulatory standards.
We at Vijay B Kumar & Co. provide certification and attestation services for all those purposes as required by the clients.
Types of Certificates
Generally, the following types of certificates are required to take on business activities in India:
- Certificates on the support of accounts and annual financial statements.
- Certificates for maintaining statutory records under Companies Act, 2013 and other laws as applicable.
- Certification for statutory liabilities.
- Certification of Fair Valuation of Shares of Companies for the purpose of mergers and acquisitions or demergers, Buy-back of shares, Allotment and transfer of shares.
- Certification for remittances abroad by an Indian resident to foreign entities outside India u/s 195 of the Income Tax Act, 1961.
- Net worth Certificates required for Bank finances, furnishing of Bank guarantees and issuance of Visa by Embassies.
- Tax Residency Certificate (TRC) required claiming relief under the applicable DTAAs.
- Certification of arm's length price u/ 92 of the Income Tax Act, 1961.
- Utilization certificates of various grants being discharged by Govt. of India to NGOs, Statutory Bodies, Autonomous Bodies, and charitable organizations.
- Certificates for claiming various deductions & exemption under various rules & regulations.
- Certificates under the Income-Tax laws for various registrations, exemptions, deductions, etc.
- Certificates related to Transfer Pricing.
- Certification for various matters under GST Law.
- Certification under other Indirect Tax Laws.
- Certification under Exchange Control legislation for imports, remittances, ECB, DGFT, EOU, etc.
- Certification for claiming GST refunds.
- Certification for investment in plant and machinery by MSMEs.
Attestation Services
Attestation Service is a consulting service in which a practitioner expresses a conclusion about the reliability of a written statement. Every individual or business entity requires attestation on various documents from a Chartered Accountant as per the specified rules and regulations of different laws in India.
Types of Attestation Services
There are broadly three types of attestation services regarding the financial statements of an entity: Compilation, Review and Audit.
- Compilation
Often a small business cannot afford an accounting staff. So, it outsources the task of preparing its financial statements to a practitioner. When a CA prepares these statements, it is called a compilation. A small business often uses compilation services when it wants to demonstrate that the company engaged a CA in the preparation of its financial statements.
- Review
The next level of scrutiny is called a review. It is similar to a proper financial audit, but it is very narrower in scope.
Reviews are usually intended for lenders and other outside parties to receive a limited assurance on the completeness & accuracy of the financial statements.
- Audit
An audit is used to provide creditors, investors and other users with reasonable assurance about whether the financial statements of a company are free from material misstatements. The auditor’s opinion that many companies hope to achieve is an “unmodified” or a “clean” opinion.
In addition to the auditor’s engagement, the business entity tends to be more involved in an audit by:
- Preparing the financial statements for the auditor to review,
- Providing footnotes & required disclosures to the financial statements,
- Providing evidence to support the underlying transactions that comprise the financial statements,
- Having documented accounting policies and procedures and
- Answering any questions, that auditor may have.
WHAT WE OFFER?
We undertake assignments of certification work assignments across different sectors of the industries. We are actively involved in all certification works as per client’s needs. We value ourselves on practical, ethical and expert access to all certification attestation services in Delhi. Our sole purpose is to serve in the best interests of our client, giving the best opinion, avoiding conflicts of interest and working with responsibilities at all times with the esteemed profession & tax authorities with professional ethics.
Frequently Asked Questions
Why are certification services important?
Certification services are important for maintaining the integrity of financial reporting and ensuring that businesses and organizations comply with relevant accounting and regulatory standards. They provide assurance to stakeholders that the financial information presented is accurate, reliable, and trustworthy.
What is the difference between an audit and a review?
An audit is a more intensive examination of a company's financial statements compared to a review. In an audit engagement, the chartered accountant provides an opinion on whether the financial statements are presented fairly, in accordance with the applicable accounting standards. In a review engagement, the chartered accountant provides limited assurance that the financial statements are free from material misstatement.
What is an agreed-upon procedures engagement?
An agreed-upon procedures engagement involves performing specific procedures agreed upon by the client and the Chartered Accountant. The results of these procedures are then reported in a written report, which can be used by the client for various purposes.
When is attestation services needed?
Attestation services may be needed in various situations, such as when a company is seeking funding from investors or lenders, when there is a change in ownership, or when there is a need for regulatory compliance.