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Internal audit of automobile dealer

Megha Bansal (CA ) (168 Points)

21 May 2017

Can anyone provide me audit program, checklist and report format for an internal audit of a automobile dealer.

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check opening balance

check all sales purchase loan advances debtors creditors cash bank

take prinout our of triyal balance

check every group like capital account , resverve and surplus , secured and unsecured loan , sundry carditors ,

fix assets , investments , debtors , cash , bank

Praveen Kachhawa (Financial Accountant) (225 Points)
Replied 22 May 2017

( 1 ) sale value and vat amount

( 2 ) VAT return

( 3 ) service tax return ( on labour chg. )

( 4 ) TDS Return

( 5 ) Bank statement, creditors, debtors confirmation

( 6 ) Insurance Payout ( incentive by insurance companies

( 7 ) Finance Payout ( incentive by Financers )

( 8 ) Tds Receivable ( match 26as )

( 9 ) Salary and Pf

( 10 ) DMS software incentive by company provided

( 11 ) Consumer Offer ( in automobile sector consumer offer are given by , but

some contribution by dealer , check

( 12 ) DEMO Car payout.

( 13 ) Check some randomly free gifts / cards / free fuel coupan given to customer.

( 14 ) Extended Warranty ( is warranty claim processed by manufacturer or not )

( 15 ) Check Dealer Reserve Fund status

( 16 ) Extended Warranty commission and quartely incentive

( 17 ) RTO Chg. ( received from customer / paid to RTO office )

( 18 ) TRC chg. ( Temporary Reg. chg. )

( 19 ) Interest on securities.

( 20 ) Mostly Automobile Dealer have Inventory Funding, Trade Advances From

financers, check statement and confirm balance.

( 21 ) Old Car ( stock ) and Exchange offers,

( 22 ) Bodyshop ( accidental cases ) Insurance Claim status.

( 23 ) New cars, Spare Parts stock, Oil , Tyre stock .

( 24 ) Check TCS collection or payment ( cash received above 2 lakh .

( Above 10 lakh tcs in mandtory on car sale )

( 26 ) Cenvat Credit taken properly or not.

( 27 ) check exp./ income voucher, Bank stmt, Confirmation.

( 28 ) Shareholding Patters, Director Loan, retirement / addition of new director.

3 Like

CA Amrita Chattopadhyay (Audit & Assurance) (13029 Points)
Replied 29 May 2017

Please find attached the Internal Audit Program for Automobile Industry

Attached File : 601889 20170529152057 internal audit of automobile industry.pdf downloaded: 4139 times

2 Like

Sanil Kumar KB (AGM) (44 Points)
Replied 24 July 2018

Originally posted by : Member (Account Deleted)
	check opening balance check all sales purchase loan advances debtors creditors cash bank take prinout our of triyal balance check every group like capital account , resverve and surplus , secured and unsecured loan , sundry carditors , fix assets , investments , debtors , cash , bank

Sanil Kumar KB (AGM) (44 Points)
Replied 24 July 2018

Pls, in a professional way

Business Consultant (Consultant) (38 Points)
Replied 28 June 2021

I would suggest you connect with Ambit Collective LLP who could help in this regard. Ambit Collective is a consulting firm that is considered a leader in providing consulting services to automotive retail in India. Started by ex-big 4 senior professionals with a 60 member strong workforce, they currently service clients in Delhi NCR and will soon scale their operations to other parts of India and overseas.