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Tax audit

(Guest)

What factors are to be considered while making balance sheet of those,falling under tax audit? What main matters to be seen?

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CA ADITYA SHARMA (CA IN PRACTICE ) (16719 Points)
Replied 20 June 2011

IT DEPENDS UPON THE NATURE OF BUSINESS

(Guest)

Thank you but mainly what items details should be varified before putting amounts in financial statements who are under tax audit like stock details,sales etc? Please indicate those items?

Deepesh Khatri (CA) (167 Points)
Replied 20 June 2011

Follow the standards on auditing, guidelines of ICAI and CBDT.

Karan Teli (Life Is just an Illusion...!!) (4573 Points)
Replied 21 June 2011

There are no hard and fast rules for tax audits to be considered...

you need to go through the previous years workin papers along with PAF to get a clear view of what things to be considered....

CA,CMA,CS Karan Gogia (Employed) (230 Points)
Replied 21 June 2011

What factors are to be considered while making balance sheet of those,falling under tax audit? What main matters to be seen?

If you want to do a genuine TAX audit - u need to first prepare the financial statement and then you do tax audit step by step covering all provision of in form 3CD..

If Tax audit is just a formality in your CA firm as in most the offices- then do the back working...first read TAx audit report carefully then adjust figures in financial statement accordingly...

Shouvik Chakraborty (B.COM CA FINAL ACCOUNTS EXECUTIVE) (120 Points)
Replied 21 June 2011

Do the main ratio analysis like GP ration, NP ratio etc and compare it with previous year figure. If you find huge increse or decrease try to find out the reason of this increase or decrease.Check the statutor dues if any with the supportings and if there is a huge bank balance or debtors balance or creditor balance cross check with bank statement or third party confirmation.

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