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Stat audit- begineer- please help me

CA Final Docent (No work) (690 Points)

25 February 2013

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..

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4 Replies

C.A. P. HAREESH KUMAR (PRACTICE) (375 Points)
Replied 26 February 2013

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

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Mani (Accountant) (53 Points)
Replied 26 February 2013

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!

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