Audit of New Firm

if i am in your situation, my procedure will be same as audit of any common firm,
1. understand the business of firm
2. take copy of all the statutory registrations and renewals done
3. usual vouching
4. check for the compliance of all the statutory requirements
5. see if any of the regiistration to be done is PENIDNG FROM THEIR SIDE
6. how preliminary expenses are taken care off
7. asset purchased(special care to be taken in case of machinery and rawmaterial purchased before VAT registration)

i think thats it, i am not able to recall anyother points to be taken care off

What  Meghdoot send is absolutely correct . But to certain extent it varies from client to client depending on its nature of Business.

The audit is to be done the same way like that of other firms but apart from routine audits the following areas should be taken into consideration:-

1)Take the PAn card copy and retain the xerox copy with you

2)If its a partnership firm ask for the partnership deed

3)Confirm the nature of business

4)TDS wont be applicable since its the first year of audit

5)Ask for bills for additions to fixed assets