While auditing the civil / construction bills,what are the aspects that I have to consider.When I go through civil bills, I couldn't understand the nature of work carried out in the site as they are in civil engg.terms.Is there any guidance note in respect of audit of civil bills.Please guide me in this regard.
17 October 2008
There is no other way other than your own effort to discuss with people concerned, visiting the spot your self and observre what is going on and understand the details of work and apply your common sense.
21 October 2008
Apart from disccussion with client ,you go through the bill raised by the party and minutely verify the bill particulars , nature of job dones, activity involved,amount shown in the tds certifcate isssued to the client as job done or amount on which tds is deducted ,go through the expenses and get clue about the nature of activity carried out and see whether corresponding income is credited or not , and if no bill is raised then see the amount is shwen as WIP.
CAclubindia
