Audit & Assurance

MNGP provides Audit & Assurance Services for clients to gain detailed examination, systematic review, assessment and inspection of an existing system, financial records, policies, procedures, documents and information to owners and shareholders to make financial and operational decisions depending on the information.

We conduct every nature of audit including Statutory Audits within a company or an outside organization, reviews and reports on a department, process, policy or function within a company. As well as we identify areas of inefficiency and make corrective recommendations, improve the quality and transparency of information, evaluate and improve the effectiveness of the entity’s governance, risk management and internal control processes, reduce the chance of problems occurring from incorrect information while other audits are designed to check for noncompliance, errors and frauds.

Our Audit and Assurance Services includes,

External Audits

We conduct our audit in accordance with Sri Lanka Auditing Standards (SLAuSs). Further we are independent of the entities in accordance with the Code of Ethics issued by CA Sri Lanka, that are relevant to our audit of the financial statements, and we are fulfilling our other ethical responsibilities in accordance with the Code of Ethics. Based on the conducted services we prepare a report addressing to the Board of Management on compliance of qualitative and quantitative disclosures.

Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor’s report that includes our opinion. As part of an audit in accordance with Sri Lanka Auditing Standards, we exercise professional judgment and maintain professional skepticism throughout the audit.

Internal Audits

Internal Audit is an independent, objective assurance and consulting activity designed to add value and improve organizational performance. It is an inevitable function in today’s competitive environment. Through Internal Audit we cover the business operations of production, purchasing, selling, customer accounts, payroll, review of monthly financial reports & etc.

Internal audit will keep a continuous vigilant eye on the operation of internal controls if such controls are satisfactory in their design, or suggest improvements to the design, if the design is defective. Company owners or shareholders typically commission an internal audit, which may focus on the following types of functions,

  • Ensuring the accuracy of financial and other information provided to management
  • Review achievements of Organization Objectives
  • Asses reliability and integrity of Information
  • Evaluate the safeguards afforded to assets
  • Assess compliance with laws, regulation, policies and contracts
  • Assess efficiency, effectiveness, economy and ethical conduct of business activities.
  • Consider fraud risk scenarios
  • Follow-up previous audits to assess if remedial action has been effectively implemented.
  • Look for business improvements and better ways of doing things.

Special Purpose Audit

A special audit is a type of audit assignment that normally done by us. This is happening when a problem or case occurred in the organization, like fraud, business case, or other special cases.
We develop client-specific management strategies that include key focus areas and measures for success.

Review financial statements is a type of negative engagement where we are engaged to review the financial statements of the entity. At the end of the review, the audit is not going to express whether financial statements are the true and fair view and free from material. But, we will issue the opinion to say that there is nothing come to their attention that financial statements are not prepared true and fair view and free from material.
Further we are engaged in the issuing of Compilation Engagement Reports, Certified Accounts Report & Etc.

We provide Operational audits which are designed to evaluate and analyze an organization’s operations, including policies, procedures, goals, philosophies, systems, internal control and culture.
Usually we conduct this type of audit internally, seek to identify areas of inefficiencies and make recommendations to reduce costs, streamline processes and improve policies. Operational audit is the part of the internal audit and our main aim is to add value to the business.
For example, a manufacturer may conduct an audit of the company’s supply chain to identify ways to reduce costs and streamline product delivery procedures.

An information system audit is called an IT audit. In this type of audit, we assess and check the reliability of the security system, information security structure, and integrity of the system so that the output that the system produces is reliable.
Sometimes, financial auditing also requires to has IT auditing as now technology is increasing and most of the client’s financial reports are recording by complex accounting software. Especially, when an entity uses an ERP system where the operational reporting is also integrated with the accounting system. For example, banking system normally links between operational reporting and the accounting system.
We provide this type of system audits with adding value to businesses.

We conduct Integrate audit when there are two different areas of audit requirements. For example, there is a financial audit and a social audit, or there are some areas that need to be confirmed with the financial audit.
For example, the NGO requires their financial statements to be audited and technical areas too. Mostly NGO are working on public activities and most of the money spend are related to public related works.
This is called an integrated audit. We conduct the integrated audit when the entity operates in many different countries, and the financial statements are needed to audit by different audit firms.

It is our aim to issue an opinion on whether the expected financial information has been properly prepared based on the published assumptions, including a non-qualitative certification statement that gives reasonable assumptions.
Expected financial information includes future financial performance, future financial position, future cash flow, and future moves that are reasonably based on assumptions about future events and actions.

The agreed-upon procedure is the type of negative engagement where we perform their review on the procedures that are agreed with the client. This type of engagement is called limited assurance
when we found that there is a conflict of interest, the safe guide will check and introduce to reduce the conflict.
Once we complete our review or perform all the procedures required by management, we will issue the report call factual finding report by list down all the findings they found during the audit.

We engaged in the Compliance Audit that are used to determine if companies are compliant with internal and external regulations. This includes company standards, Auditing & Accounting Standards, Other rules & regulations in Sri Lanka. Organizations need to conduct compliance audits to maintain safe and fair working conditions, ensure product quality, minimize risks and Etc.
For instance, a factory manager may commission quarterly compliance audits to ensure whether the employees are following safety guidelines for using and maintaining equipment, cleaning facilities, taking appropriate breaks and etc.
A compliance audit is part of the system that can use by the entity’s management to enforce the effectiveness of the implementation of the government’s law and regulation, and the entity’s internal policies and procedures.

In payroll audits we examines your business’s payroll processes to ensure they are accurate. When conducting payroll audits, we look at different payroll factors, such as pay rates, wages, tax withholdings, and employee information.
Payroll audits are typically internal. Businesses should conduct internal payroll audits annually to check for errors in their payroll processes and remain compliant.

Value for money audit refers to audit activities that perform in assessing and evaluating three main difference factors: Economy, Efficiency, and Effectiveness.
we assess and evaluate whether the resources that entity purchases are at the low cost with acceptable quality where efficiency audit, we check whether resources that entity use have better conversion ratio.
we review the entity’s purchasing system to assess and evaluate whether it is helping the entity to purchase materials or services at the low costs or not.
Value for money audit is really important for the entity since it helps the entity not only to improve resource efficiency usage but also making sure that the entity obtains good quality material at the low costs.

We assure in particular refers to assurance engagements where providers express a conclusion to intended users about the information provided in corporate social responsibility reports against chosen criteria.