Sir I'm doing Audit of a trading firm where the Gp is around 4-5 %...
By making Comparative I came to know this year Gp has Fallen to 3.75% against previous year of 4.5%...
The ratio of purchases to sales was similar 96%.. but Closing Stock to Sales have Fallen from 4% to 2.5%...

Then I made a diff. Trading A/c for all the Components where I came to know about the food Products which are showing only .75% Gp to sales.

So plz tell what could be the matter in this case... Plz tell all other alternatives that I can do...
Thanx in Advance..
Plz reply.. U can ask other things also in relation to this

please provide me internal control checklist or questionnair to keep in mind while auditing internal control system of the company relating to fixed assets

Hello friends, i need certain clarifications regarding Tax Audit. 1. Whether the penalty paid by an assessee is to be shown against the relevant clause in 3CD even if the same was debited to capital account in case of prop./partnership as the clasue requires the words books of accounts.
2.In case of part B of Annexure 1 whether the advance tax paid should be shown in the relevant coulmn of taxes paid of provided for on income.
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Dear Experts,
My auditor has asked me to make ledger scrutiny to a tax audit firm (business income).
This is the first time i am going to do that.
I know that it is not an easy question to answer becuase there will be lot of points to be considered. But pls. inform me what are the important points to be noted in case of
(1) Sales
(2) Purchases
(3) Assets - Is it enough to see new purchase of assets.
(4) Cash in hand
(5) Bank A/c - whether BRS available
(6) Liabilities
(7) Expenses - operative & non-operative.
(8) Income - Operative & non-operative.
With regards,
Rajesh.

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Dear Experts,
I have been assigned the task of ledger scrutiny of a tax audit firm which is a manufacturing unit.
1) Please let me know how i should carry out the ledger scrutiny?
2) Please inform me what are the important ledgers that i have to go through to ensure that the books are maintained as per the statute.
With regards,
Rajesh.