| AUDIT PROGRAMME | |||
| NAME OF CONCERN | |||
| FINANCIAL YEAR | |||
| ASSESSMENT YEAR | |||
| PERSONS TO WHOM THE AUDIT IS ASSIGNED | |||
| S.NO | PARTICULARS | ASSESSMENT YEAR | |
| DATE | VERIFIED | ||
| 1 | OPENING BALANCES | ||
| *LEDGERS | |||
| *CASH BOOKS | |||
| *PETTY CASH BOOKS | |||
| *BANK BOOKS | |||
| *STOCK REGISTERS | |||
| *EXCISE RECORDS | |||
| 2 | CASH BOOK (INCLUDING PETTY CASH) | ||
| * IF VOUCHING IS DONE ON TEST BASIS THEN MENTIONED THE BASIS | |||
| OF SAMPLE TAKEN | |||
| *VOUCHING OF RECEIPTS | |||
| *VOUCHING OF PAYMENTS | |||
| *VOUCHING OF CONTRA ENTRIES WAS CASH RECEIVED FROM BANK | |||
| ENTERED IN CASH BOOK ON THE SAME DAY AS WITHDRAWN FROM BANK | |||
| STATEMENTS | |||
| *WHETHER ANY CASH PAYMENT WAS MADE FOR EXPENSES IN EXCESS OF | |||
| Rs 20000.00 IN A SINGLE DAY TO A SINGLE PERSON | |||
| *WAS CASH BALANCES NEGATIVE AT ANY TIME | |||
| *ARE ALL VOUCHERS ENTERED UNDER CORRECT ACCOUNTING HEADS | |||
| *ARE ALL VOUCHERS ARE RELATED TO THE AUDIT YEAR | |||
| *ARE ALL VOUCHERS ARE RELATED TO THE CONCERN | |||
| *IS REVENUE STAMPS OF RS 1 AFFIXED ON A PAYMENT EXCEEDING Rs 5000 | |||
| *WHETHER THERE IS INTERNAL CONTROL ON CASH HANDLING , ACCOUNTING | |||
| AND MANAGEMENT | |||
| *ARE ALL CASH VOUCHERS AUTHORISED | |||
| * WHETHER THERE IS PERSONEAL EXPENSES ENTERED IN CASH BOOK | |||
| *TOTALLING (NO NEED IF COMPUTERISED) | |||
| *POSTING (NO NEED IF COMPUTERISED) | |||
| 3 | BANK BOOK | ||
| * IF VOUCHING IS DONE ON TEST BASIS THEN MENTIONED THE BASIS | |||
| *VOUCHING OF RECEIPTS | |||
| *VOUCHING OF PAYMENTS | |||
| *VOUCHING OF CONTRA ENTRIES WAS CASH DEPOSIT IN BANK | |||
| ENTERED IN CASH BOOK ON THE SAME DAY AS DEPOSITED AS PER BANK | |||
| STATEMENTS | |||
| *ARE ALL VOUCHERS ENTERED UNDER CORRECT ACCOUNTING HEADS | |||
| *ARE ALL VOUCHERS ARE RELATED TO THE AUDIT YEAR | |||
| *ARE ALL VOUCHERS ARE RELATED TO THE CONCERN | |||
| * VERIFICATION OF BANK RECONCILIATION STATEMENTS | |||
| *ARE THERE ANY CHEQUE PENDING CLEARANCE FOR MORE THAN 6 MONTHS | |||
| IN THE BANK RECONCIALIATION STATEMENTS | |||
| *IS REVENUE STAMP OF RS 1 AFFIXED IN PAYMENT EXCEEDING Rs 5000.00 | |||
| *WHETHER THERE IS INTERNAL CONTROL ON ACCOUNTING | |||
| AND MANAGEMENT OF BANK TRANSACTION | |||
| *ARE ALL BANK VOUCHERS AUTHORISED | |||
| * WHETHER THERE IS PERSONEAL EXPENSES ENTERED IN BANK BOOK | |||
| *TOTALLING (NO NEED IF COMPUTERISED) | |||
| *POSTING (NO NEED IF COMPUTERISED) | |||
| 4 | PURCHASES | ||
| *IF VOUCHING IS DONE ON THE TEST BASIS THEN MENTIONED THE BASIS | |||
| OF SAMPLE TAKEN | |||
| *VOUCHING WITH PURCHASE INVOICE | |||
| *VERIFICATION OF FEW BILLS IN-DEPTH | |||
| *ARE PURCHASES MADE BY THE CONCERN ANY WAY RELATES TO BUSINESS | |||
| OF THE FIRM AND IF NOT ASK REASON FOR IT? | |||
| *WHETHER MODVAT AND / OR VAT ON PURCHASES IS PROPERLY ACCOUNTED | |||
| IF CREDIT IS AVAILABLE THEN THE SAME MUST BE DEBITED AS ADVANCES TO | |||
| THE CONCERNED AUTHORITIES AND. | |||
| IF NOT THE ABOVE CAN BE ADDED TO COST OF PURCHASE. | |||
| *ARE PURCHASES RELATED TO THE YEAR UNDER AUDIT? | |||
| *ARE PURCHASES RELATED TO THE CONCERN BEING AUDITED? | |||
| *ARE PURCHASES RETURNES ARE RELATED TO THE PURCHASE MADE DURING | |||
| THE YEAR UNDER AUDIT | |||
| *ARE PURCHASES ENTERED UNDER APPROPIATE HEAD I.e, RAW MATERIAL, | |||
| CONSUMABLES STORES,ETC? | |||
| *ARE PURCHASES TALLYING WITH RETURNES FILED WITH VAT / SALES TAX | |||
| DEPARTMENT | |||
| *INTERNAL CONTROLS ON PROCURMENT,ACCOUNTING AND PAYMENT FOR | |||
| PURCHASE | |||
| *TOTALLING(NOT NEEDED IF COMPUTERISED) | |||
| *POSTING(NOT NEEDED IF COMPUTERISED) | |||
| *OBTAIN THE PARTY CONFIRMATION LEETER | |||
| 5 | SALES / REVENUE | ||
| *IF VOUCHING IS DONE ON THE TEST BASIS THEN MENTIONED THE BASIS | |||
| OF SAMPLE TAKEN | |||
| *VOUCHING WITH SALES INVOICE | |||
| *VERIFICATION OF FEW BILLS IN-DEPTH | |||
| *WHETHER MODVAT AND / OR VAT ON SALES ARE PROPERLY ACCOUNTED | |||
| *ARE SALES RELATED TO THE YEAR UNDER AUDIT? | |||
| *ARE SALES RELATED TO THE CONCERN BEING AUDITED? | |||
| *ARE SALES RETURNES ARE RELATED TO THE SALES MADE DURING | |||
| THE YEAR UNDER AUDIT | |||
| *ARE SALES TALLYING WITH RETURNES FILED WITH VAT / SALES TAX | |||
| DEPARTMENT | |||
| *ARE OTHER REVENUES ARE TALLYING WITH RETURNES SUBMITTED WITH | |||
| THEIR RELATING AUTHORITIES | |||
| *ARE SALES BILLS IN SERIAL NUMBER,ARE ORIGINAL COPY OF CANCELLED | |||
| BILLS WITH THE CONCERN? | |||
| *INTERNAL CONTROLS ON PROCURMENT,ACCOUNTING AND PAYMENT FOR | |||
| PURCHASE | |||
| *CHECKING THE QUANTITY. | |||
| *TRACING THE CASH MEMO/DAILY CASH RECEIPTS IN CASHBOOK. | |||
| *TOTALLING(NOT NEEDED IF COMPUTERISED) | |||
| *POSTING(NOT NEEDED IF COMPUTERISED) | |||
| *OBTAIN THE PARTY CONFIRMATION LEETER | |||
| 6 | JOURNAL | ||
| *IF VOUCHING IS DONE ON THE TEST BASIS THEN MENTIONED THE BASIS | |||
| OF SAMPLE TAKEN(NATURE AND THE REASON SHALL ALSO BE CHECKED) | |||
| *ENSURE PROPER DISTINCTION BETWEEN REVENUE AND CAPITAL NATURE ITEM | |||
| *POSTING(NOT NEEDED IF COMPUTERISED) | |||
| 7 | SALARY & WAGES | ||
| *IF VOUCHING IS DONE ON THE TEST BASIS THEN MENTIONED THE BASIS | |||
| OF SAMPLE TAKEN.VERIFYING CALCULATIONS WITH DAILY ATTENDENCE | |||
| *VERIFYING AMOUNT DUE WITH APPOINTMENT LETTERS | |||
| *VERIFYING AMOUNT PAID BY SALARY / WAGES REGISTER WITH CORRESPONDIG | |||
| LEDGER A/C | |||
| *VERIFYING RECONCILATION OF SALARY & WAGES PAYABLE | |||
| *VERIFYING RECONCILATION OF BONUS GRATUITY & LEAVE ENCASHMENT | |||
| PAYABLE | |||
| *CHECKING TOTALS & CASTING,CASHBOOK FOR RECEIPTS,PAYMENTS & | |||
| DEDUCTIONS | |||
| *TEST CHECK CALCULATION | |||
| *CHECKING CONTRACTS RESOLUTIONS FOR PAYMENTS OF DIRECTORS, | |||
| EXECUTIVES,ETC.,WITH VOUCHER | |||
| *CHECKING THAT ALL WAGES & SALARY SHEET & PAYMENT VOUCHERS ARE | |||
| PROPERLY AUTHORISED | |||
| 8 | STOCK REGISTERS | ||
| *IF VOUCHING IS DONE ON THE TEST BASIS THEN MENTIONED THE BASIS | |||
| OF SAMPLE TAKEN | |||
| *VERIFICATION OF INWARDS | |||
| *VERIFICATION OF OUTWARDS | |||
| *BALANCING(IS ANY STOCK NEGATIVE ON ANY DAY) | |||
| *VERIFICATION OF VALUATION AT THE YEAR END | |||
| *VERIFICATION OF CLOSING STOCK WITH EXCISE REGISTERS(RG-1,RG-23 & PLA) | |||
| IF ANY | |||
| *ARE SALES RETURNES DULY ENTERED ? | |||
| *IS THERE PROPER RECORD FOR MATRIAL SENT & RECEIVED FOR PROCESSING? | |||
| *ARE STOCKS TALLYING WITH STOCK STATEMENTS SUBMITTED TO BANKS,FIS ETC. | |||
| *CHECKING CLOSING STOCK WITH INVENTORY STATUS & VALUATION | |||
| 9 | STATUTORY DUES | ||
| *CHECK LATEST INCOME TAX ORDERS | |||
| *CHECK LATEST SALES TAX / VAT ORDERS & ORDER PASSED DURING THE YEAR | |||
| *CHECK EXCISE AND COSTOMS RECORDS AND AUDITS CONDUCTED BY THE DEP- | |||
| -ARTMENT,IF ANY | |||
| *ARE THERE ANY DEFAULTS IN ESI DUES ? | |||
| *ARE THERE ANY DEFAULTS IN PF DUES ? | |||
| *IS SERVICE TAX PAID IN TIME & ITS RETURN FILED IN TIME ? | |||
| *TDS DEPOSITED IN TIME & QUARTERLY STATEMENTS FILED IN TIME ALSO CHECK | |||
| CHALLANS? | |||
| *ARE TDS CERTIFICATES ISSUED IN TIME ? | |||
| *ARE TDS CERTIFICATES (DEDUCTED BY OTHER FOR THE CONCERN BEING AUDITED) | |||
| TALLYING WITH RELEVANT INCOME FOR THE YEAR | |||
| *IS ROC RETURNES & DOCUMENTS FILED IN TIME ? IS FILING FEES ACCOUNTED FOR | |||
| IN THE BOOKS ? | |||
| *IS WEALTH TAX APPLICABLE? IF YES NECESSARY PROVISIONS,PAYMENTS AND | |||
| RETURNES ARE MADE | |||
| *IS AMOUNT OF ADVANCE TAX IS TALLYING WITH CHALLANS? | |||
| 10 | SHARE CAPITAL & RESERVES | ||
| *IS CERTIFICATE OBTAINED THAT BALANCES OF SHARE CAPITAL REGISTER AGREE | |||
| WITH THE ISSUED CAPITAL AS PER BALANCE SHEET? | |||
| *IS DISTINCTION MADE FOR SHARES SUBSCRIBED IN CASH OR FOR CONSIDERATION | |||
| OTHER THAN CASH? | |||
| *IS DISTINCTION MADE FOR REVENUE RESERVES & CAPITAL RESERVES | |||
| *IS THERE A DEFAULT BY ANY DIRECTOR IN PAYMENT OF CALLS OR ALLOTMENT | |||
| MONEY | |||
| *WEATHER PROPER RETURNE OF ALLOTMENT HAS BEEN FIELD WITH ROC. | |||
| *CHECK MINUTE BOOK TO SEE THE RELEVANT DECISION AFFECTING SHARE | |||
| CAPITAL AND R&S | |||
| *IS THERE A MAJOR CHANGE IN SHARE HOLDING? IF YES HAVE THE COPY OF | |||
| CHANGE OBTAINED | |||
| 11 | FIXED ASSETS | ||
| *PHYSICALLY VERIFICATION OF THE ASSETS | |||
| *VERIFICATION OF BILLS FOR ADDITIONS DURING THE YEAR | |||
| *VERIFICATION OF DEPRICIATION CHARGED | |||
| *IF IN ANY OTHER CURRENCY,TRANSLSTE INTO RUPEES AND HANDLED THE | |||
| THE DIFFERENCE IN FOREIGN CURRENCY TRANSLATION. | |||
| *VERIFY THE MORTGAGE DEED, TITLE DEED FOR LEGAL,EQUITABLE MORTGAGE ETC | |||
| *VERIFY MINUTE BOOKS,RESOLUTIONS ETC.TO CHECK WEATHER THERE IS PROPER | |||
| AUTHORISATION FOR PURCHASE OR SALE OF PLANT AND MACHINERY | |||
| 12 | VERIFYING PROVISIONS FOR | ||
| *POWER & ELECTRICITY FOR THE LAST MONTH OF THE FINANCIAL YEAR | |||
| *CELLULAR & TELEPHONE FOR THE LAST MONTH OF THE FINANCIAL YEAR | |||
| *SALARY OR WAGES OR OTHER PAYMENT DUE TO THE EMPLOYEES FOR THE LAST | |||
| MONTH OF | |||
| *INSURANCE & AMC PREPAID | |||
| *OTHER PROVISIONS SUCH AS STAFF WELFARE,VAT/SALES TAX PAYBLE, SERVICE | |||
| TAX PAYBLE, INCOME TAX PAYBLE,WEALTH TAX PAYBLE | |||
| 13 | FINAL CLOSING BALANCES | ||
| *CHECKING OF FINAL BALANCES OF LEDGERS, CASH BOOK, BANK BOOK ETC, WITH | |||
| BALANCE SHEETS,PROFIT & LOSS ACCOUNTS | |||
| *COMPARING ACOUNT HEAD BALANCES WITH PREVIOUS YEAR AND HAVING ANSWER | |||
| FOR MAJOR VARIATIONS | |||
| * RATIO ANALYSIS | |||
| *CHECKING OF RATIOS & COMPARING WITH PREVIOUS YEARS FIGURES REGARDING | |||
| 1 G.P. RATIO | |||
| 2 N.P. RATIO | |||
| 3 MATERIAL CONSUMED RATIO | |||
| 4 STOCK IN TRADE RATIO | |||
| 5 DEBT EQUITY RATIO | |||
| 6 CURRENT RATIO | |||
| 14 | INTERNAL CONTROL SYSTEM | ||
| * IS THE SYSTEM IN PLACE TO PREVENT OR DETECT FRAUD | |||
| *WHETHER THERE ARE PARTICULARLY INDENTIFIED ANY SERIOUS WEAKNESSES | |||
| THE SYSTEM OF INTERNAL CONTROL | |||
| *NATURE, FREQUINCY & EXTENT OF MANMAGEMENT'S ASSESSMENTS OF SUCH RISK | |||
| TEST OF CONTROL BY KNOWING WHO ACTUALLY PERFORMS THE VFUNCTIONS | |||
| RATHER THAN WHO SHOULD PERFORM | |||
| * WHETHER FRAUD RISK FACTOR EXIST | |||
| 16 | SCRUTINY OF | ||
| * GENERAL LEDGER | |||
| * PARTY LEDGER | |||
| * INVEWNTORIES (QTY & VALUE) | |||
| 17 | RELIANCE ON THE WORK OF OTHER AUDITOR OR EXPERTS | ||
| *REVIEW OF WORK DONE BY AN OUTSIDE EXPERT / SERVICE PROVIDER | |||
| *INTERNAL AUDIT REPORT IF ANY | |||
| * REPORT OF OTHER AUDITORS IF ANY | |||
| 18 | EXTERNAL CONFIMATIONS | ||
| *WHETHER THE EVIDENCE OR CONFIRMATIONS OF THE LEDGERS BALANCES HAS | |||
| BEEN OBTAINED FROM OUT SIDE PARTIES | |||
| 19 | MISCELLANEOUS | ||
| *REVIEW EVENTS AFTER THE BALANCE SHEET DATE | |||
| * REVIEW THE TERMS OF DEBENTURES & LOAN AGREEMENT AND DETERMINE | |||
| WHETHER ANY HAS BEEN BREACHED | |||
| * READ THE MINUTES OF THE MEETINGS | |||
| * CONSIDERED ENTITY'S POSITIONS CONCERNING UNFULFILLED CUSTOMER ORDER | |||
| *DISCLOSURE OF NON RECURRING OR UNUSUAL ITEM OF INCOME & EXPENDITURE | |||
| *DISCLOSURE OF MATTERS REQUIRED BY LAW OR INTERNATIONAL ACCOUNTING | |||
| STANDARDS | |||
| *WHETHER ACCOUNTING ESTIMATES IS REASONABLE & DISCLOSED IN THE FINANCIAL | |||
| STATEMENTS | |||
| * WHETHER ANY EVIDENCE IS CONTRADICTORY WITH THE REPRESENTATION OF | |||
| THE MANAGEMENTS | |||
| * WHETHER ANY TRANSACTION IS PREJUDICIAL TO THE INTEREST OF THE COMPANY | |||
| 20 | FINAL FINANCIAL STATEMENTS | ||
| *CHECKING OF TOTAL OF SCEDULES & DETAILS &TALLYING WITH RELEVANT | |||
| SCHEDULES OF FINANCIAL STATEMENTS | |||
| *IS DISCLOSURE OF MATTERS REQUIRED BY LAW OR RELEVANT ACCOUNTING | |||
| STANDARDS | |||
| *WHETHER ALL THE EVENTS UP TO THE DATE OF AUDITORS REPORT THAT MAY | |||
| REQUIRE ADJUSTMENT OF OR DISCLOSURE IN THE FINANCIAL STATEMENTS HAVE | |||
| BEEN IDENTIFIED | |||
| * VERIFYING CONFIRMATIONS, LETTERS & CERTIFICATES | |||
| * COPARING FIGURES OF THE CURRENT YEARS WITH THE FIGURES OF THE PREVIOUS | |||
| YEAR | |||
| * CHECKING ITEM OF BALANCE SHEETS SUPPORTING STATEMENTS | |||
| * VERIFICATIONS OF PRESENTATION OF FINANCIAL STATEMENTS AS PER RELEVANT | |||
| LAW Example FOR COMPANIES SCHEDULE VI OF COMPANIES ACT | |||
| *VERIFYING COMPUTATION OF TAXABLE INCOME | |||
| *DRAFTING OF AUDITORS REPORT | |||
| 21 | CONCLUSIONS | ||
| * REVIEW OF WORK PERFORMED BY EACH ASSISTANTS | |||
| * QUARIES RESOLVED BY SENIORS / PARTNERS | |||
| * FINALISED BY (NAME OF PERSON) | |||
| * FINALISED ON (DATE) | |||
| *SIGNED ON | |||
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