Tax audit check list for corporate companies

Following are the check points to be kept in mind while conducting the Audit of a Co. :-

1) Check whether the activities carried out by the Co. are in agreement with its MOA and AOA.

2) Check whether TDS is deducted at the time of payments made, wherever necessary [ For eg. TDS on Salary, Interest, Commission, Professional / Technical Fees etc. ]

3) Obtain the Closing Stock Statement from the Management.

4) Check whether the Bank balance matches withe balance in the books of accounts. Obtain BRS wherever necessary.

5) Obtain Balance Confirmation letters from creditors [ For creditors whose outstanding balance is more than Rs. 1 Lac as on the date of balance sheet ]

6) Whether Loans and Advances given / taken are recorded properly and interest is calculated correctly.

7) Check whether remuneration to director is given as per the AOA. Also examine the resolution for any changes in the conditions of remuneration.

8) Check whether Fixed Assets are recorded properly and accordingly depreciation is charged to such assets.

9) Check whether provisions are made for expenses incurred in march but payments made after the balance sheet date. [ For eg. Electricity exps., Telephone exps., Salary, ESIC, PF etc. ]

10) Check whether items to be capitalised are wrongly charged to Profit & Loss A/c.

11) Check whether any payments are made in cash above Rs. 20000.

12) Check if any personal exps. of the directors have been charged to Profit & Loss A/c.

Regards,

Devendra Kulkarni