What factors are to be considered while making balance sheet of those,falling under tax audit? What main matters to be seen?
What factors are to be considered while making balance sheet of those,falling under tax audit? What main matters to be seen?
IT DEPENDS UPON THE NATURE OF BUSINESS
Follow the standards on auditing, guidelines of ICAI and CBDT.
There are no hard and fast rules for tax audits to be considered...
you need to go through the previous years workin papers along with PAF to get a clear view of what things to be considered....
What factors are to be considered while making balance sheet of those,falling under tax audit? What main matters to be seen?
If Tax audit is just a formality in your CA firm as in most the offices- then do the back working...first read TAx audit report carefully then adjust figures in financial statement accordingly...
Do the main ratio analysis like GP ration, NP ratio etc and compare it with previous year figure. If you find huge increse or decrease try to find out the reason of this increase or decrease.Check the statutor dues if any with the supportings and if there is a huge bank balance or debtors balance or creditor balance cross check with bank statement or third party confirmation.
Go through From no. 3CD
Naveen Fintech Pvt Ltd
Kolkata
CA Inter
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