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Audit of balance sheet & trial balance

Arvind Viswa (Article student) (47 Points)

27 July 2012  

Dear friends,

Can any one tell me how to conduct Audit of Balance Sheet and Audit of Trial Balance.

Is their any cross check like comparing current asset , non current assets, current liability and non current liability while conducting audit of  Balance sheet and Trial balance.

Just i know , first we have to compare opening balances of balance sheet, and any other else ? 

 5 Replies

Yogesh Goel (Chartered Accountant) (192 Points)
Replied 28 July 2012

There is no such cross checking of current assets, non current assets and current liablities non current liabilities...how ever it may depend on fact and crcumstances that if they are not properly clasified the current and non current you should suggest for reclassification.

For audit of Balance Sheet and Trial you just have to go through all item there of one by one..like in Fixed Assets check depreciation workings, if there are any additions then check for proper invoices and proper capitalisation of interst on loan on fixed assets if any.

similarly check other things like get confirmation for debtors and creditors, check ledgers randomly of there seems to be improper transactions..if theer are long outstanding blances...

for loans and bank accounts get Balance cerficate and interest certificate also for OD CC if any.

check sanction letter letter fr loans...


simmilarly chek all other items of balance sheet/trial to check there authenticity.......



2 Like

Arvind Viswa (Article student) (47 Points)
Replied 28 July 2012

Thanks Goel for ur reply. when i attend coaching class for PE-II accounts they teach us comparision while preparing Cash flow statement. Unfortunately i forget that one.


SUDARSAN A (article assistant) (26 Points)
Replied 14 May 2016


if any asset purchased from other country then how to compute the cost of such asset  . . . ?



Praveen CA (2 Points)
Replied 18 May 2016

In case of export of an Asset,it shall be subject to Customs Duty,You might refer to those relevant documents.

NISHIT AGARWAL (B COM (HONS) , ca pcc) (27 Points)
Replied 22 October 2018

kindly tell me the treatment of tds amount for current year

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