LEDGER SCRUTINY
This query is : Resolved
20 July 2011
Sir/Madam
Please tell me.
What is procedure of LEDGER SCRUTINY in statutory Audit.
Please tell me.
What is procedure of LEDGER SCRUTINY in statutory Audit.
21 July 2011
Ledger Scrutiny is done with the purpose of finding out any anomalies in Ledgers.
You need to verify the following:-
1) A ledger that normally should have Debit balance should not show a credit balance.
Eg. Credit balance in Debtors Account. If it does find reasons for the same.
2) Similarly accounts that should normally show credit balance should not reflect Debit balance.
3)Scrutinise Capital Account, Reserves, Loan Accounts and see if entries posted are in order.
4) select P&L Accounts with major amounts and study the entries passed in those accounts.
5) Also see in case of Expense Ledgers if TDS has been correctly deducted and paid.
6) Check Ledger accounts with Inter company entries.
In short, Once the ledger scrutiny is done, You should get a comfort that all transactions are justified and properly disclosed in the accounts.
You need to verify the following:-
1) A ledger that normally should have Debit balance should not show a credit balance.
Eg. Credit balance in Debtors Account. If it does find reasons for the same.
2) Similarly accounts that should normally show credit balance should not reflect Debit balance.
3)Scrutinise Capital Account, Reserves, Loan Accounts and see if entries posted are in order.
4) select P&L Accounts with major amounts and study the entries passed in those accounts.
5) Also see in case of Expense Ledgers if TDS has been correctly deducted and paid.
6) Check Ledger accounts with Inter company entries.
In short, Once the ledger scrutiny is done, You should get a comfort that all transactions are justified and properly disclosed in the accounts.
23 July 2011
What anisha has told is absolutely correct. The term ledger scrutiny is a broad term and Anisha has noted down some examples of areas to be covered in ledger scrutiny. Ledger scrutiny under statutory audit is with the purpose of getting that level of comfort which will enable you to give your opinion on financial statements as an auditor.
You need to be the querist or approved CAclub expert to take part in this query .
Click here to login now
Click here to login now
Similar Resolved Queries
Unanswered Queries
- GSTR-1A How to update Invoice
- Excess salary payment.
- TDS on Purchase of Immovable Property by NRI from NRI
- Capital gain from sale of house property
- INTEREST APPLICABLE ON ITC REVERSAL PORTION
- Stamp Paper for partnership firm change new income tax 2025
- Current Account Opening for Sole Proprietorship with Udyam Certificate - Zero Turnover
- Regarding TDS Applicability For Director Remuneration
- SFT Cash Deposit in Current Account
- Annual return in Gst
- TDS APPLICABILITY......
- Copyright software
- Cash gift by grand mother to her grand daughter
- Tax amount diff in Gstr1 and 3B in tax compare reports
- Tds on GST in connection with sale to public company
- Restoration of certificate of practice
- Regarding change in correspondence address in SSP portal
- No Compliences after incorporation
- USEFUL LIFE OF USED/SECOND HAND COMMERCIAL VEHICLES
- Claiming TDS deducted by builder on Hardship compensation and Corpus
Trending Online Classes
-
DT & Audit (Exam Oriented Fastrack Batch) - For May 26 Exams and onwards Full English
CA Bhanwar Borana & CA Shubham Keswani
CAclubindia
