Stat audit- begineer- please help me

Well   I  donot intent to  answer  your question -  But  my small understanding of Statutory Audit of Co  I shall narrate here under 

To  find out  whether the form in which the Financial  statements are presented and its contets are in confirmity with the governing  statute  ie  Companies Act 1956  ( Schedule VI) 

To ascertain whether  appilacable accouting standards have been complied in respect of  all material items   while compiling the financial statements 

Ascertain no material information is withheld  /   informations are  not presented in a manner  as to create  a wrong impression - not  to mislead the user  

Those responsible for the financial statement have  duly authenticated the same 

That is all I  focus when I audit accounts 

All the best 

Originally posted by : milind h.s.
	Hello seniors and experts, I got into Statutory audit deprtment as articled assistant in one of the big firm in Bangalore.. My reporting date is on friday..So i have 3days for preparation.. I like accounts very much hence i chose SA department. My questions are.. 1. i want to perform well but how to perform well ?? I dont know how exactly it works.. I mean audit of companies.. 2. i dont  know how audit is being done in tally!! i only know vouching in tally.. Now what to do?? i m litttle week in tally 3. Should i read something about SA and BANK AUDIT in these 3 days?? 4. Is there any book which will help me to perform well  in SA audit?? 5. what will I be asked to do during intial days?? So that i can prepare now itself.. PLease suggest me some ideas..

Milind, first thing you need to do is to relax .. because everything would be taught by your seniors out there .. But while doing any checking have a clarity as to why you are doing ..

The only thing you can work out now is to start learning MS Office ..

If you want to know basics of Statutory audit .. here are some 

a)  It is done for all companies governed by Companies act 1956

b)  The objective of audit is to ensure that the contents of P&L and Balance sheet of the company are true and fair.

c) This means all we need to do is to ensure that every item shown in P&L is genuine.. So we do vouching for all expenses and income .. Since 100% checking is not possible, we go for sample checking

d) For Balance sheet items, we have to ensure that the assets and liabilities actually exist. hence for assets we see title deeds and other supporitngs. For Fixed Assets and Inventory we will also do a sample physical verification. For liabilities like loans etc we again see the supportings like loan sanction letters, bank correspondence etc...

e) Over and above these, we have to ensure that P & L and Balance Sheet are prepared as per the Accouning Standards. So wherever a particular AS is applicable, we will check whether it being complied/not. Simple!

Thanku Hareesh sir and Mani sir for replying

Mr. Milind

If you are doing statutory audit than you need not take too much of pressure.

But you have to be very quick and you need to have professional skepticism.

You will get very less time to perform your audit task.

What you can do to utilise your training to full extent is have more and more academic knowledge so that you can perfom your function well.

Because you can perform bank audits in a good manner only if you know the regulations which are imposed on the banking companies.

In the same way if you know that what rules and regulations are imposed on a particular entity only than you can ensure that they are complied with.

So acquire more and more knowledge by reading books about companies Act, Accounting Standards, Standard on Auditing, Special audits etc. etc.