LIVE GST Audit Course by CA Sachin Jain. Register Now!!

Easy Office

LCI Learning

Audit in P&L

Sohail Ali (18 Points)

26 June 2018

What an Auditor will audit in P&L account. and what we should be careful regarding cash payment and reverse charge

Reply
Follow
Share

1 Replies

Himal (Executive) (52 Points)
Replied 26 June 2018

Generally while auditing cash balance following needs to be checked throughly:

Physical Verification of Cash
Insurance adequacy of cash in hand, cash in transit & Cash in safe.
Any single cash payment above Rs. 35,000/- in case of payments to transporter and Rs. 20,000/- in other cases

For reverse charge & other taxes you may check the following :

Review of procedures implemented by the company to ensure that proper liability of tax is recorded in the books as and when becomes due.
Ensure the timely deposition of the same and also check if any undisputed amount has not been deposited and the recording of the reason for the same.
Ensure the company is generally regular in deposition of tax and if any undisputed amount has not been deposited since six moths it became due in view of reporting under CARO.
Ensure the company has filled proper return of the turnover in accordance with the laws.
Reconciliation of the return as filled with the authorities with the total sales.
Ensure that the company has implemented the system for the correct availment of the input.
Review the assessment (if any) made during the year and also the reservation, remarks made, any demand raised (if any) and the ground thereof.
Procedures as to the collection of relevant statutory forms.

Hope this helps.

Join CCI Pro

Recent Topics

More recent discussions | Post

Related Threads

Popular Discussion

Start a New Discussion

Trending Online Classes

Live Course On Gst Audit Finalization & Revenue Finding Techniques - Analytical Session For Gst Officers & Staff

Sachin Jain

Enroll Now

05 May 2024
"Live class on Python for Financial Analysis: Unlocking Efficiency in Accounting and Finance"

CA Vishal Zawar

Enroll Now

01 May 2024
5th Live Batch for Basic and Advanced MS Excel

CA Vishal Zawar

Enroll Now

20 May 2024

view all classess

CCI Pro

Subscribe to the latest topics :

Search Forum:

Forum Home

Popular Threads

Recent Posts

Unreplied Threads

Settings