Difference between Financial Audit and Cost Audit

 Difference between Financial Audit and Cost Audit  Cost Audit & Financial Audit
Oct 192012
 

Audit is the task of careful and in detail checking or examining of cost & financial statements from company or organization to make sure that they are correct and complete, or a report that showing the results of this check.

Financial Audit is the examination of financial records and business accounts by an independent body which is conducted for compliance, taxation or for disclosure purposes and ensures high accuracy in the given reports.

Cost Audit is the verification of accounts and cost records, and a careful compliance to cost accounting process.

Difference between Financial Audit and Cost Audit

Financial Audit Cost Audit
1. Financial audit is mandatory for all companies  registered under Companies Act, 1956. Only in case of companies involved into manufacture or mining business and required to maintain Cost Accounts as per Section 209.
2. The financial audit is done to report on the financial data, consisting of a statement of balance sheet and profit and loss to ensure fairness of business perspectives. Cost audit is done to certify after careful examination or checking of reports on expenditure made on production of intended items.
3. Financial Auditor is appointed by shareholders. Cost Auditor is appointed by the board of directors with the previous approval of the Central Government.
4. Financial audit is mandatory to be conducted every year. Cost Audit is conducted in a year in which audit is required by the government.
5. Financial audit is done or conducted as per the demand of the shareholders. Cost audit is done when government or industrial organization proposes to make an audit.
6. Financial auditor has to check or examine carefully and in detail the exact value of closing the stock for the purpose of balance sheet. In cost, audit the auditor has to see whether there is sufficient stock maintaining in order to fulfill the needs of the business concern.
7. The financial auditors have to give their remarks about the exact expenditures shown on the record. The cost auditors have to give their remarks about how correctly or wisely the decisions have been taken in production of items.
8. The finance auditor submits the report in annual general meeting organized by shareholders. Cost auditor submits the report to the company and central government within 180 days from the end of financial year.

 

e-TDS Software for Filing e-TDS Returns

 e-TDS Software for Filing e-TDS Returns  Tax Deducted at Source (TDS), TDS Software
Oct 192012
 

e-TDS Software for Filing e-TDS Returns

TDS or Tax Deducted at Source is the direct and compulsory tax component that is deducted from the salaries of employed people who draw a salary above the minimum level decided by the government. This is calculated on fixed percentage of the salary of the person. However, since different people may have different salary structures, the task of arriving at the figure becomes all the more challenging for the accounts department. It is in this aspect that the TDS software takes the load off the shoulder of the accounts department.

Once the company has the TDS Management software installed in their systems, the calculation of the TDS is carried out with the least bother. This software also helps people to calculate TDS under the various heads of the Income Tax Act. Some of the different heads are interest on securities, payments to contractors, rent, fees to professionals, etc.

The e-TDS software offers you a time-saving, an efficient solution to generate quarterly TDS statements. With the help of e-TDS software you can generate quarterly statement in form 24Q, form 26Q,  form 27Q, and form 27EQ. You need to file e-TDS or e-TCS return as per e-filing Administrator’s data format (NSDL). The FVU is used to validate e-TDS or e-TCS returns.

The e-TDS software can help you import data from Accounting Software / ERP or can be imported from Text file or MS-Excel files or FVU file. Various MIS reports can be generated like challan wise, payments details, list of deductee / party with details like addresses, PAN etc. The software also help you keeps information related to deductor such as TAN or PAN, BSR codes, MICR codes etc. You can make online tax payment and generate Challan. You can download TDS certificates Form16 & Form16A automatically from the NSDL website on a click of a button. The e-TDS Software also has the advanced facility of emailing digitally signed Form 16 or Form 16A.

e-TDS software also generate Revised Statements related to

a. Update deductor details such as Name, Address of Deductor.
b. Update challan details such as challan serial no., BSR code, challan tender date, challan amounts etc.
c. Update/delete /add deductee details.
d. Add / delete salary detail records.
e. Update PAN of the deductee or employee in deductee/salary details.
f. Add a new challan and underlying deductees.

With the help of the software you can generate NIL returns just with a click of a button. There are facilities of data backup & restore facilities as and when you need. There is an option available to export the MIS reports in PDF, Word or Excel format.

For more details on TDS Management Software, Please visit us at http://www.sensysindia.com