Audit & Assurance

AUDIT & ASSURANCE

As per the requirements of new Companies Act No. 07 of 2007, a Company could be incorporated as a ‘limited company’ or an ‘unlimited company’ or as a ‘company limited by guarantee’. Accordingly a registered auditor qualify to carry an audit in these companies and he should be a member of Institute of Chartered Accountants of Sri Lanka.

An audit is the examination of the financial report of an organisation – as presented in the annual report – by someone independent of that organisation. The financial report includes a balance sheet, a statement of comprehensive income, a statement of changes in equity, a cash flow statement, and notes comprising a summary of significant accounting policies and other explanatory notes.

The purpose of an audit is to form a view on whether the information presented in the financial report, taken as a whole, reflects the financial position of the organisation on the given date. When examining the financial report, auditors must follow auditing standards which are set by Institute of Chartered Accountants of Sri Lanka. Accordingly we set up our audit methodology as follows.

Statutory Financial Audits

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KRP Madusanka & Co provides auditing services and assurance services for small and medium-size enterprises operate in Sri Lanka.

The entities incorporated under the companies Act No 07 of 2017, it is compulsory to carrying a statutory audit at least once a year. This audit should be certified by the registered auditor and accordingly all companies are liable to perform such audit under the provisions of companies act of Sri Lanka.

We adopt an audit plan that is designed to provide reasonable assurance that the company’s accounting records and financial statements are presented fairly and not misrepresented.  While we are your auditor, we can add value by helping you drive good corporate governance to improve controls, deter and detect material fraud and errors thus providing credibility to your financial report statements.  We are also able to give advice on your company structure and operations that might help you become more efficient. Nevertheless, our key role is to be the guardian of your shareholders’ interests.

Special Regulatory Audits

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Companies differ not only in regard to industry, level of internationalization and size (revenue, number of employees etc.), but also in history, ownership or management and corporate culture. Hence entities may have different reporting structures according to the unique business operation of the entity. Accordingly companies may require to perform special regulatory audits in many instance to fulfill the legislative requirements which the company operate

The requirement may come from specific ruling or guidance given in different laws, directions or any other statute. In such instance we are ready to serve our clients by extensively examine the requirements and fulfill the needs of client according to the scenario. Mainly special regulatory audits include compliance audit and governance audit of the companies.

Special interim audits of Quarterly and Bi-annually

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Companies may require to perform interim audits during the financial period for different financial requirements or as per the requirements of stakeholders. In such instance we are ready to serve our clients by providing assurance services for interim periods and issue a separate audit reports based on requirement thereon. I.e. Quarterly financial statements, Bi-annual financial statements etc.

Internal Audit Services (Outsourced/ Co-sourced)

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Internal auditing is an objective assurance and consulting activity designed to add value and improve an organization’s operations. It can help an organization accomplish its strategic objectives by bringing a systematic, disciplined approach to evaluating and improving the effectiveness of risk management, control, and governance processes. Our Internal Audit services help boards and senior executives better manage enterprise risks. KRP Madusanka & Co. professionals help organizations enhance the effectiveness, quality, and value received from internal audit (IA). Our broad understanding of risks and areas of operational improvement — particularly the nuances of specific industry sectors and markets — can help internal audit functions improve their performance and operating efficiency and bring value to their organizations.

Internal audit outsourcing

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Our firm outsourcing engagements are recurring in nature and comprise the performance of all internal audit activities including the annual planning, execution of the annual plan, and reporting to management and the audit committee. Under an outsourcing arrangement, the client may or may not have a chief audit executive (CAE) in place within their organization.

Internal audit co-sourcing

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Co-sourcing engagements are recurring in nature and comprise the performance of some percentage of the total annual internal audit hours for an organization.

Accounting & regulatory advises

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Our vast knowledge in many industries benefited to clients to get many advises to their companies. Especially when the industry operates in a specific rulings, directions issued by relevant authorities for the organisation operations, we are ready to help our clients to grab those opportunities and maximize the wealth of the business partner with client. Further we are master in accounting assignments such as book keeping, journal updating and reconciliation statements for the day today operation of the company.