Hello every one..!!
I am to conduct an audit of a firm which is a works contract firm. It's main business is to take up contracts of pillar erections. I am little confused about how exactly should i go on with the audit. I have carried out audit for manufacturing and trading concerns. But i dont know what to check in the present firm...so any help would be appreciable...!!
According to me if possible before audit try to go through AS 7 properly. With the help of AS 7 you will understand so many things about contractor business
Thank you for your replies..!!
If you could also tell me, whether there are other things than ESI of the labourers that i should observe carefully, It would help me a lot..!!
You could also refer AS-9 for Revenue Recogonition
Understand the business first and the linked to the Laws and Standards....... will be helpful to prepare Audit programme..........
Dear
TDS will attract for not only labour but also for machinery hiring for concrete work, Building equipments for RMC machines, Centering sheetsw etc., Get a gist from what are all they are hiring & TDS hv been deducted/paid promtly. If they have previous year's audit report obtain & go thro' it before conducting audit. In manufactuing industries U can quantify the items & its value. Here they will have BOQ (Bill of Quantity) & BOM (Bill of Materials) These two are the basic cost deriving element & to budget (if the company possess)This is not but quotation so the Billing shouldbe in line with that. Here RAB (Running Actual Bill) which willbe in a qumulative calue. If they have 3rd party involved in Certifying the bills. We hv to account Certified value only. All the best.
CAclubindia
