Statutory Audits

CMA KNVV Sri Vidya - Sri Kanth (C.A.Final (New) ICWAI FINAL (New))   (11269 Points)

11 March 2009  


Name of Audit Firm:-

Audit Period
01.04.2007- 31.03.2008
Partner signing
Person In Charge
Contact No.

A)Statutory Requirements:-
Ø    Balance Sheet:-
1.      Share Capital
Please Confirm that is there any change in Shareholders pattern. If so, provide a certified copy of list of share holders and their shareholding position as on 1-4-2007 & 31-3-2008.
2.      Share Application Money
Please Confirm that is there any receipt of Share Application Money during the year, if Yes, Please Produce copies of Share Application Forms evidencing the receipt of Share Application Money if any.
3.      Secured Loans
Please produce the following documents:
a.    Bank Statements and Bank Reconciliation Statements (BRS) for the   loans availed for full year.
b.    Produce Balance confirmations from the Bankers/Financial institutions.
c.     Produce copies of sanction letters evidencing rate of interest being   charged and the rate of interest as per sanction letters.
d.    Produce interest workings/Reconciliations.
e.     If any bank accounts have been closed during the year then please confirm, are there any charges created, if so please produce the relevant forms for satisfaction of charge filed with ROC.
4.      Unsecured Loans
Please produce the following documents:
a.    Statement showing loans accepted and squared off during the year.
b.    Please produce copies of documentation such as agreements with the parties evidencing the particulars of receipt of loans.
c.     Rate of interest and other terms and conditions.
d.    Produce interest Working/Reconciliations
e.     If payment is to be made in installments, then state whether there is any default in payment, or any penalties are born by in form of extra charges.
f.      Produce ledger copies in the books of provider of loan, if there are any deviations then also produce Reconciliations for such deviations
 5.    Current Liabilities and provisions:-
a.    Please produce the break-up of Sundry Creditors as ‘Creditors for Expenses’ and ‘Creditors for Goods’.
b.    Produce the confirmation copies from the parties for which closing balance exceeds Rs. 50000.00
c.     Produce ledger copies in the party’s books, if there are any deviations then also produce Reconciliations for such deviations.
d.    Produce ledger copies and balance confirmations of related party transactions irrespective of the outstanding balance as on 31-3-2008
e.     Please produce a detailed note on the nature of relationship with such related parties in the day to day business operations and agreements if any evidencing the price at which the transactions are settled.
f.      Produces a detail note on the Creditors Written- off during the year, and confirm was there any need to write-off?
g.    Produce a list of parties to be written-off and reasons for such long outstanding.
h.    Produces a detail note on the Provision standing in the Books along with ledger copy, also confirm the nature of such provisions.
6.      Statutory Payments/ Dues and Returns:-    
a.    Please produce the ledger copies for the Statutory dues such as
·       TDS Payable
·       TCS Payable
·       Professional Tax Payable
·       Provident Fund Payable
·       Sales Tax Payable
·       VAT Payable
·       Excise Duty
·       Service Tax
·       Provision for Fringe Benefit Tax
·       Provision for Income Tax
·       and any other applicable Statutory Dues
b.    Produce copies of challans evidencing the payment of the above statutory dues.
c.     Produce detailed statements for the above statutory dues having details of Month-wise credits/payable, Due date for the payment, Date of actual payment, delay if any etc.
d.    Produce copies of Quarterly TDS Returns, Sales tax returns, produce Sales Tax and Excise Duty Reconciliation statements, also produce the copy of VAT return along with Statement of Credit taken.
e.     Workings for Provision for Income tax/MAT calculations.
f.      Produce quarter-wise workings for Fringe Benefit Tax (FBT).
g.    Produce payment of advance tax challans for income tax and FBT.
7.      Fixed Assets :-
a.    Please confirm are there any additions to fixed assets, if so produce copies of invoices along with workings for capitalization of assets
b.    Produce depreciation workings, both book purposes and I.T. purposes.
c.     Produces a detail note on the assets disposed off during the year, whether the management consent was taken before the disposal and also state the reason for disposal.
d.    Produce the list of assets not accounted in books along with value and state location of such assets.
e.     Whether the certificate has been obtained from the vendor regarding life and warranty of assets.
8.      Inventories:-
a.    Produce closing stock valuation statements along with the details of cost and market value of inventories
b.    Produce Reconciliation statements with Excise Records.
c.     Produce copies of Quantitative details of daily production and sales.
d.    Show the input and output ratio of raw materials
e.     State the position of WIP on 31.0.2008
f. Produces a detail note on the raw material purchased and used. Whether the raw material was returned during the year, if yes show in % of total inward and cost incurred in the return of raw material.
g.    Whether the physical inventory was taken during the year, list out the discrepancies found, and what action was taken in this regard.
h.    Whether the register is maintained at gate point for the proper control of inventory.
9.      Investments:-
a.    List of investments made during the year and amount invested.
b.    Nature of investments whether it is a long term or short term, please provide management consent on nature of investments.
c.       List of investments sold during the year.
d.    Whether provisions are made in relation to interest receivable or dividend income?
e.     Provide the list in respect of date of investments made and date of maturity.
10.    Current Assets:-
a)   Sundry Debtors:-
·        Produce break-up of Debtors as more than
·        Produce Age-Wise analysis of Debtors.
·        Produce confirmation copies and account copies in the other parties ledger accounts for amounts exceeding Rs. 50000/-
·       Produce reconciliation statements if there are any differences, state the reason for same.
·       Produce copies of agreements with the parties.
·       Confirm is there any need to write-off any balances outstanding if so the reasons for such provision.
b)   Cash and Bank Balance:-
·       Produce a list of payments made in cash for more than Rs. 20,000/-
·       Produce Bank statements and Bank Reconciliation Statements for the whole period.
·       Also produce bank statements and details of subsequent dates of clearance of cheques pending in BRS at the year end.
·       Produce copies of FDRs and statements of interest workings.
·       Also confirm that are there any new bank accounts opened during the period if so produce copies of Board Resolution authorizing the same.
·        If any Petty cash account is maintained than provide reconciliation statement for it, if there is any deviation than state the reason for same.
·       Provide the list of stale cheques standing in books.
·       Whether the unsigned cheques books is crossed or kept in the lock by taking proper consent from management.
c)    Deposits:-
·       Produce copies of deposit receipts.
·       Produce corresponding agreements for such deposits.
·       Produce confirmation copies.
Ø    Profit and Loss Account:-
1.      Sales and other income:-
a.    Produce break-up for Sales & Other income.
b.    Produce relevant agreements with the parties which are not covered above.
c.     Produce Sales Reconciliation with Sales Tax/VAT Returns.
d.    Produce interest workings and copies of dividend warrants if any included in other income along with workings for Dividend received.
e.     Produce break-up of miscellaneous income along with detailed workings if any.
f.      Provide detail note on sales return, stating reasons, amount of sales return and reason for the same.
g.    Are there any discrepancies in issuing the invoice, state the reason for same?
h.    Sales order pending in hand from more than 1 month.
2.      Purchase and other Direct Expenses:-
a.    Produce break-up for Manufacturing Expenses.
b.    Produce relevant agreements with the parties which are not covered above.
c.     Provide the list of Purchase orders which are pending from more than 1 month.
d.    Whether the allocation for raw material is properly made in respective heads under purchase.
e.     Whether the budget was prepared by the company for the year 2007-08, provide the details of deviations.
f.      Whether the emergency purchases were made during the year, provide the detail for the same.
g.    What is the mode for selection of suppliers, whether the new suppliers are added in preceding year, name of the person who makes purchases for the company?
h.    Whether the company has made the contract for supply of goods, if yes, provide the agreement for the same, is there any change in terms of contract in preceding year?
i.       Please provide a detailed note on the procedure followed by the Company for making purchase.
3.      Manufacturing Expenses:-
a.    Produce break-up for Manufacturing Expenses.
b.    Provide the Trial balance of manufacturing Expenses.
c.      Produce relevant agreements with the parties which are not covered   above.
d.     Provide the detail note on the Expenses incurred in 2007-08 as well as in preceding financial year under the head “Manufacturing Expenses”.
e.     Provide the budget prepared for the financial year 2007-08 for manufacturing expenses.
f.      Whether the manufacturing work is on contract, if yes, please provide the copy of agreement.
g.    Provide the number of workers working in factory premises, whether they are on contract, if yes, provide the contact note.
4.      Administrative Expenses:-
a.    Provide the Trial balance of Administrative Expenses.
b.     Produce Rental agreements and ledger copy.
c.     Produce donation receipts if any which are eligible for deduction U/s. 80G of Income Tax Act, 1961.
d.    Provide the detail note on the Expenses incurred in 2007-08 as well as in preceding financial year under the head “Administrative Expenses”.
e.     Provide the list of assets placed in office premises.
f.      Please provide the break up of expenses incurred in cash and threw bank.
5.      Finance Charges:-
a.    Produce break-up of Finance Charges along with detailed workings for                                               interest charged.
b.    Whether there is any default in making the payment of interest or other dues?
B)Statutory Records:-
a.    Produce copies of board & general body minutes.
b.    Please confirm, are there any new charges created if so produce copies of relevant forms filed with the ROC.
c.     Please confirm whether the statutory records are updated and also furnish the same for verification.
d.    Please provide us the following Statutory Register for our verification:-