Required audit programme

Dear Roopanand,

Following is the Audit Programme of a Construction Company :-

1) Verify the Memorandum of Assocation and Articles. Whether the activities are being carried out as per the Objectives.

2) Verify the Minutes of the Meetings for any important decisions taken.

3) Check all the expense vouchers correctly. Check whether the payments are authorised by the Competent Authority.

4) Check whether TDS is deducted is deducted on payments made to Architects, Contractors, Interior Designers. Also keep a photocopy of PAN Card of the Individuals whose TDS are being deducted.

5) Verify whether Statutory Payments such as ESC, PF, Profession Tax are being deducted from the salary and deposited within the prescribed date.

6) Verify the various Bills and see that the Supplier's Invoice bears a VAT TIN No. and whether the Input Tax is being separately recorded. Further classify the purchases made such as Intra-state Purchases, Inter-state Purchases, Imports etc.

7) Verify any Credit / Debit  Notes issued / received against the Sales / Purchases made by the Company.

8) Check the Bank Reconciliation Statements.

9) Check whether the Closing Stock is valued correctly. (Obtain a Closing Statement from the Company, as verified by the Director)

10) See that there are no Personal Expenses debited to the Profit and Loss A/c. Confirm the nature of any unusual expense incurred by the Company.

11) Check whether any New Fixed Assets are purchased during the Year. If yes, then see that they are classified correctly and are charged with the correct Depreciation Rate.

12) Check whether Service Tax is applicable to the Company.

13) Verify the Amount of Loans and Deposits taken / given by the Company. Obtain Balance Confirmation Letters for the loans taken by the Company. Also check whether the copmany has given any Advance to its Staff.

14) Verify the Amount of Retention, if any.

15) Match the Turnover of the Company with the Turnover as reflecting in 26AS Statement. Also see whehter the TDS deducted by the Customers matches with the Books of Accounts.

Regards,

Devendra Kulkarni