Mehrotra and Mehrotra is an audit firm based in India that uses a risk-based audit methodology. Their methodology focuses on understanding the client's business, assessing risks, developing an audit strategy and plan, performing audit fieldwork, dealing with critical issues, and reporting findings. They aim to provide assurance on operations and identify compliance issues. Their audits are tailored to each client and focus on high-risk areas. They also incorporate IT auditing and use technology to enhance their methodology. The firm ensures legal compliance with various Indian labor, environmental, and tax laws across different stages of the compliance audit process.

1. Audit Methodology at Mehrotra and Mehrotra
Chartered Accountants
Riskpro, India (Mehrotra and Mehrotra
Chartered Accountants)
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2. Make Decisions……
Take Risks…….......
Experience Success!
Your partner in
risk management
|governance |compliance
|audit 2

3. Contents
About Riskpro, India 4
About Mehrotra and Mehrotra 6
(see attached detailed profile of Mehrotra and Mehrotra)
Our Philosophy 7
Quality Assured 8
Clear and Continuous Communication 9
Annexure I - Our Audit Methodology 10
Annexure II – Legal Compliance 18
Contact details 23
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4. About Riskpro, India
Riskpro is India’s first national practice dedicated to risk management services and
training, corporate governance, and global regulatory compliances
Risk can be defined as a prospect of loss or reduced gain that can adversely affect the
achievement of an organisation’s objectives
When greed overtakes need, it spells trouble. Manifested as ‘bankruptcy’ in much of the
developed world and ‘corruption’ closer to home, greed has clearly disrupted some major
industrialised economies and enhanced the risks of doing business
In today’s world, risks are not few. The reason companies so often fail to systematically
manage their key risks is rooted in the way they define the risks they face. Risks are
manageable and the answer to untapped business opportunities that lie dormant waiting
for risk factors to turn favourable
Riskpro was founded in 2009 with offices in Mumbai, Delhi, and Bangalore and it has
already added eight member firms in Ahmedabad, Agra, Chennai, Gurgaon, Hyderabad,
Jaipur, Ludhiana, and Pune. All our offices and member firms are well equipped and
staffed with qualified professionals viz. CA, CWA, CS, CPA, CISA, CFA, and MBA
Riskpro’s founders are qualified risk management specialists with extensive work
experience in Europe and USA in several industries and financial institutions
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5. About Riskpro India (cont…)
RISKPRO SERVICES
Our four major practice specialisations /service lines are:
• Risk: Enterprise Risk Management (services and training & recruitment)
• Governance: Corporate Governance and Transparency
• Compliance: Global and Indian Regulatory Compliances
• Training: in all of the above service lines; and Recruitment
The Risk Practice deals with all classes of risks and processes viz. governance, strategic,
systemic /infrastructure, compliance, reporting, and financial reporting. Processes require
that key risks are properly identified, measured, monitored, controlled, and reported.
Processes may also require tools like risk based internal audit, information security testing,
and fraud investigations, to be employed
The Governance Practice deals with corporate oversight and risk governance issues within an
organization including business continuity planning, compliance with SEBI guidelines by
listed companies, regulations relating to independent directors, investor expectation and
protection, Clause-49 on corporate governance, etc
The Compliance Practice covers a wide range of regulatory and environmental compliances
including Sox, IFRS, Solvency II, Basel II /III, Corporate Laws & Direct Tax Code etc
The Training Practice comprises of a variety of structured and /or industry specific training
programs and modules designed and conducted by Riskpro experts and trainers at onsite
(client or other offices) and offsite (Riskpro Training Centre) training facilities
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6. About Mehrotra and Mehrotra, Chartered Accountants
Mehrotra & Mehrotra is a firm of Chartered Accountants based at New Delhi.
It is also having offices at Mumbai and Kanpur. The firm was established in
the year 1962 by Mr. M.P. Mehrotra, now a very senior member of the
Institute of Chartered Accountants of India. It is managed and headed by
proficient and veteran chartered accountants. Our team of professionals
including Chartered Accountants, Certified Internal Auditors, Lawyers,
Solicitors, Engineers and MBA's are engaged in developing and refining
new processes and methodologies to offer excellent quality services to our
esteemed clients.
The firm in its existence of over 48 years has provided a wide gamut of
services like Accounting Services, Auditing Services, Taxation Services to
the clients both within and outside India. We provide complete range for
any kind of financial accounting services, business process outsourcing,
direct and indirect tax consultancy etc., in India. We offer the most
authentic professional services like income tax, service tax, value added tax
etc., which can easily accelerate for the clients. Mehrotra & Mehrotra is
professionally managed organization, which is wholeheartedly engaged in
providing most reliable services.
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7. Our Philosophy
● We will understand your business needs completely and deliver a
service that adds value
● We dedicate the best resouces with relevant sector experience, and
provide a state-of-the art quality service at an affordable fee
● We are always accessible and our approach to work is:
supportive and collaborative, flexible and responsive, open and
honest communication. We hold hands, not shake hands
● We provide constructive suggestions on improving business
processes and cost controls
● We adhere to timelines and deadlines
● We keep you informed about significant changes in regulatory,
compliance, and accounting matters on an ongoing basis
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8. Quality Assured
We place great emphasis on quality control and quality management.
Our quality process Direction and supervision
Our Quality Process is designed to provide a quality The firm provides for appropriate direction and
culture, to analyze the processes used to hire, train and supervision at all levels, together with appropriate
retain staff, to develop and deliver services to our clients
consultation procedures, to give reasonable assurance
and to administer our own business.
that the work performed meets the highest standards.
We:
CONTINUOUS IMPROVEMENT  employ and retain only those persons with the
intelligence, education, character and diligence
Human necessary to assume professional responsibility;
Leaders Informatio Resourc
Measure
hip and n e Service Client
 assign engagement responsibility to only those
Quality Analysis Processe
External Deliver Satisfacti persons sufficiently trained and supervised to
`
s
Culture and Service y on and discharge those responsibilities;
Planning Processe
Business
s
Business Results  not accept or continue a client relationship in
Processe circumstances incompatible with the firm’s
s
integrity;
 adopt promptly policies necessary to realise the
Skills and competence objective of professional standards and applicable
Personnel in the firm adhere to the standards of regulatory requirements;
independence, integrity, objectivity and confidentiality.  maintain policies to ensure that the firm and its
The firm is staffed by personnel who have attained, and professionals are free of conflicts of interest and
who maintain, the skills and competence required to
that professional excellence is achieved;
enable them to fulfil their responsibilities. To assist in
maintaining these skills the firm has procedures for:  not tolerate any act that can damage the firm’s
 training of staff at all levels, through both formal credibility.
courses and on-the-job experience;
 continuing professional education;
 assigning work to personnel who have the degree Confidentiality
of technical training and proficiency required in the We are well aware of the importance that you place on
circumstances; and confidentiality requirements and we have a proven
 evaluating the performance of staff and counseling record of maintaining a strict code of confidentiality.
staff as to their progress and career opportunities. Our firm policy requires that affairs of clients be
confidentially kept at all times.
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9. Clear and Continuous Communication
At Riskpro India, open and honest communication is a Core Value. Our experience
leaves us in no doubt that a successful relationship is based on trust and candid,
proactive communication.
Regular and open two-way communication is fundamental to all aspects of our service
to you. As an initial priority, we will agree with you an annual Communication Plan for
all our key meetings. This will help ensure there are formal and informal opportunities
for all key stakeholders to be kept informed of the issues that matter, and that there will
be “no surprises”.
Meeting/stakeholders Key objectives
Bi-annual meetings (or as requested) with the  Present annual audit plan
Board / Audit Committee  Report key findings
 Updated assessments of key risks, including emerging risks
 Discuss new regulatory and corporate governance requirements
Quarterly meetings with the Chief Executive  Discuss strategy
Officer  Discuss operational matters and performance
 Raise and consider emerging issues
Regular meetings with Head of Financial  Discuss operational matters and financial performance
Control  Discuss implications of changes to the reporting and internal control framework
Meetings with operational management  Discuss operational and business matters
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10. ANNEXURE I - Our Audit Methodology
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11. Our Audit Methodology
Our audit methodology is risk-based and systematic which focuses on the organizational
objectives and any impediment to achieving those objectives. We recognise fully the need to
provide assurance on your business operations. Equally, we recognise the importance of
managing compliance issues, particularly in today’s evolving regulatory environment.
Understanding of Business
The key benefits of our audit approach are:
●Risk-based, & systematic approach; Risk Assessment
●Focus on areas considered as potentially & most likely to
lead to material errors in financial statements;
Audit Strategy / Planning
●Our audit control procedures are based on project planning
techniques, including the use of automated processes and
document templates, and the agreement of objectives, Fieldwork
timetables, responsibilities and careful resource planning;
●The focus of our reports are to generate constructive and
value added advice; and Dealing with critical issues
●Identifies performance improvement and cost reduction
opportunities.
Reporting
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12. Our Audit Methodology - Risk Based Internal Audit How we Do
Internal Auditing helps an organization
accomplish its objectives by bringing a Enterprise Risk
systematic, disciplined approach to evaluate Assessment
and improve the effectiveness of risk
management, control and governance
processes. Risk
Need of Organizations
Source: The Institute of Internal Auditors 1999 (IIA) Assessment
Process
Reviews
Fraud Benefits of Risk based Audit
Mitigation
• Traditional audit view value added
Control techniques
Reviews •Risk profile of Businesses
•Internal Controls & Ops Risk reviews
Transaction •Cost reductions recommendations
Audit •Review of Fraud Risk Controls
Increasing Enterprise Risk Focus
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13. Our Audit Methodology (cont..)
UNDERSTANDING THE BUSINESS
Our top-down risk-based approach ensures that the audit focus is on the issues that
are of greatest importance to you and that we are in the most appropriate position to
respond to them. Our audit starts with a detailed understanding of your industry and
business.
Our approach is based on a top-down examination of the key drivers of your business.
The output is a balanced picture of how the company interacts with customers and
external industry forces. We consider the audit implications of this analysis and use it
to identify significant audit risks.
We use industry specific business models to gain information on:
• industry background including major players, regulatory changes and trends,
• risks and drivers,
• geographic issues,
• descriptions of business processes,
• benchmarks and best practice and
• audit risks. 13

14. Our Audit Methodology (cont..)
RISK ASSESSMENT
In order to run your business, you develop processes to manage the factors that drive
performance and help control internal and external risks that could prevent you from meeting
your objectives. We focus on those processes where significant risks have been identified and
discuss with management its perception of how these risks are controlled. This phase of our
work enables us to obtain information on the processes supporting the achievement of the
company’s goals.
AUDIT STRATEGY AND PLANNING
Based on the understanding of business and risk assessment we devise the audit strategy. We
then develop detailed audit programs to test the transactions, processes and balances.
AUDIT FIELD WORK
The audit test work flows from strategic planning and risk assessment. The key element is to
review and test the high level controls embedded in your processes, as significant weaknesses
in your key processes could cost, both in terms of financial impact and reputational damage. We
also carry out necessary substantive audit procedures.
DEALING WITH CRITICAL ISSUES AND REPORTING
We identify and discuss all critical issues with management. We then determine whether the
Company’s financial statements and related disclosures meet our expectations.
We provide the audit report, management letter and any other deliverables and formally present
these to the Audit Committee / Board.
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15. Our Audit Methodology (cont..)
IT AUDIT PROCESSES AND METHODOLOGY
We see IT as an enabler of the operational and financial processes and we
incorporate IT audit professionals into our audit to facilitate the identification and
testing of IT controls.
We use our focused IT audit methodologies and tools as part of our core audit
process to evaluate and test whether the Company’s information systems are
configured for data integrity, are secure and are effectively managing the business
needs. We work with key business and IT management to identify aspects of IT
that pose the highest risk to the Company. We then conduct a systematic, detailed
review of those areas in which we:
• identify appropriate IT control objectives that map to key business
processes;
• identify relevant IT policies and procedures and/or industry IT standards;
and
• evaluate the design of controls and test whether they are in place and
operating effectively.
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16. Our Audit Methodology (cont..)
We use the following types of IT methodologies:
IT AUDIT METHODOLOGIES
 Continuity management  Process Documentation
 System capacity and availability  Control Risk Analysis
 Back up and recovery  Control Design & Implementation
 Data storage
 Network penetration testing  Project risk assessment
 Information security assessment  Quality Assurance
 Enterprise security architecture and  Project management methodology
integration  Programme management
 Ongoing monitoring processes
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17. Our Audit Methodology (cont..)
INTELLIGENT USE OF TECHNOLOGY
Technology is only one component of an integrated approach that combines
methodology, knowledge and technology into our tailored service to you.
We deliver our external audit services using a fully automated audit software. This
software is designed specifically to integrate knowledge management into the audit
process. Technology can never be a substitute for face-to-face communications and
we continue to rely on meetings with management to identify, resolve and
communicate issues.
Know ledge
Technology M ethodology
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18. ANNEXURE II - Legal Compliance
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19. Legal compliance
Stage 1 – CAC
 Preparation of Compliance Audit Checklist (CAC) covering all relevant laws
applicable to the target unit.
Stage 2 - Visit to location
 Verification of relevant records and documents available.
 Compilation of draft report based upon findings and observations of the audit
team
 Review meeting with the unit head / work directors to discussion on the
finding of audit.
Stage 3 – Report
 Submission of detailed Non Compliance (NC) report to the company (Board
of Directors or Compliance Head)
 Follow up with the unit to verify action taken
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20. Legal compliance (Acts covered - HR)
Factories Act, 1948 Shop & Establishment Act (state acts)
Payment of Wages Act, 1936 Maternity Benefits Act, 1961
Minimum Wages Act, 1948 Gratuity Act, 1972
Equal Remuneration Act, 1976 ESI Act, 1948
Payment of Bonus Act, 1965 Apprentices Act, 1961
Provident Fund & Misc Provisions Act, Employment Exchanges (Compulsory
1952 Notification of Vacancies Act), 1959
Contract Labour (Regulation & Abolition) act, Trade Unions Act, 1926
1970
Private Security Agencies Regulation
Workmen Compensation Act, 1923
Act, 2005
Prevention of Sexual Harassment
Industrial Disputes Act, 1947
(Guidelines)
Labour Welfare Act (state acts)
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21. Legal compliance (Acts covered - Engg.)
Electricity Act, 2003 Environment Protection Act, 1986
Water (Prevention and Control of
Petroleum Act, 1934
Pollution) Act, 1981
Air (Prevention and Control of
Explosives Act, 1884
Pollution) Act, 1981
Boilers Act, 1923 Water Cess Rules, 1977
Hazardous Waste Handling &
Legal Meteorology Act, 2011
Management Rules, 1989
Essential Commodity Act, 1945
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22. Legal compliance (Acts covered – Tax & Misc)
Micro, Small & Medium
Central Excise Act, 1944
Enterprises Devel. Act, 2006
Central Sales Tax Act, 1956 State VAT Acts
Customs Act, 1962 (export and import
Service Tax Act, 1955
documentation)
Income Tax Act (payment of Tax, TDS) Foreign Exchange Management Act
Industries (Development &
Negotiable Instruments Act, 1881 Regulation)
Act, 1951
Information Technology Act, 2000 Motor Vehicles Act, 1988
Competition Act, 2002
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23. Contacts and Office Locations
Corporate Mumbai Delhi Bangalore
Riskpro India Manoj Jain Rahul Bhan Casper Abraham
Ventures (P) Limited Director Director Director
M- 98337 67114 M- 99680 05042 M- 98450 61870
manoj.jain@riskpro.in rahul.bhan@riskpro.in casper.abraham@riskpro.in
info@riskpro.in
www.riskpro.in Shriram Gokte Hemant Seigell
Principal - Information Risk VP – Risk Management
C 561, Defence colony M- 98209 94063 M- 99536-97905
New Delhi 110024 shriram.gokte@riskpro.in hemant.seigell@riskpro.in
Ahmedabad Pune Agra Gurgaon
Maulik Manakiwala M.L. Jain Alok Kumar Agarwal Nilesh Bhatia
Associate Firm Principal – Strategy Risk Associate Firm Head – Human Capital
M - 91 9825640046 M- 9822011987 M- 99971 65253 Consulting
mljain@riskpro.in M- 98182 93434
Gourav Ladha nilesh.bhatia@riskpro.in
Sap Risk Advisory
M- 97129 52955
THANKS
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