For Private Circulation only
STATUTORY
AUDIT MANUAL
[SIMPLE AUDIT CHECKLIST
nd
FOR STUDENTS] – 2 Edition
……
By
Ms.Amrutha Thilakan
Ms.Nimisha K S
PREFACE TO THE SECOND EDITION
Our Team has now come out with the Second Edition of “Statutory Audit Manual” [A Simple
Audit Checklist For Students] revising the contents of the Checklist contained in the First Edition
taking into consideration the latest changes made under Corporate Laws as well as other applicable
laws. The old adage of “auditors are watch-dogs and not Blood hounds” has to be reconsidered under
the present scenario of increased compliances. Because of the expectation gaps amongst the stake
holders, the auditors have to be very careful and look out for frauds or attempt to do fraud.
Major changes that have occurred in compliance laws since the release of First Edition include:
1. Peer Review becoming mandatory for certain firms and also recommendatory for all PUs;
2. Provisions regarding Audit trail in respect of corporate entities and the requirement on the part of
auditors to report;
3. Auditors being included as a Reporting Entity under the Prevention of Money Laundering Act,
(PMLA);
4. NFRA making it very clear that „resignation as auditors‟ as such will not absolve the auditors in
respect of past negligences;
The above changes are pointing towards the requirement for a more aggressive and proactive
approach by the auditors in detecting errors/omissions and in the process, fraud also.
This will be possible only if the students and trainees take keen interest while executing audit
assignments. The Principal completely trusts the students while checking transactions with evidences.
For the purpose, this checklist will be of immense help,
This check-list originally developed by our students Ms. Amrutha Thilakan and Ms. Nimisha K.S has
been revised to a great extent to help the students to effectively do the audit. It will be of great use to
all those who engage in the audit work.
This revised Second Edition would not have been possible without the herculean effort put in by
CA Hari. K.N, our partner in checking and scrutinizing each and every audit checklist in the Audit
Manual.
I am sure all the students will make utmost use of this Manual and get enriched by way of better
knowledge and experience.
JULY:2023.
CA Mahadevan N.V
-------------X--------------
FOREWORD TO FIRST EDITION
“AUDIT” is a very dynamic word. The significance of the word changes according to the
changing expectations of the users of the Financial Statements. The Institute of Chartered
Accountants of India [ICAI] through its various Standards on Auditing [SAs] ensures that audit
is done in the best possible manner and that the users or stakeholders are given an assurance that
the Financial Statements along with the notes and significant accounting policies, gives a true
and fair view of its profitability or otherwise and its financial position and that they are free from
material misstatements or errors or omissions.
Even after 30 years in practice, whenever I am signing an Audit Report and its financial
statements, I am not 100% sure whether they are free from material misstatements or errors or
omissions. Because, we the practicing Chartered Accountants, delegate the work of verification,
preparation, etc. to our CA Article students, trainees, staff, etc. after giving training or
instructions on how to execute the audit assignment. The auditors focus on important aspects of
the Financial Statements and based on their professional experience, exposure and also what we
usually call, professional skepticism, finalise the audit. It is also not practical to check each and
every item by the auditor himself. Moreover, the students are given training on work execution
during their articleship.
„Materiality‟ is an important aspect one considers when designing and executing an assurance
engagement How to practically define „Materiality‟? Who is the authority to define it? It is a
highly relative term. It is not an easy task for an auditor to fix the materiality level in an audit
assignment. Only his experience and professional skepticism can come to his aid. But, if an error
or omission is observed later in the Financial Statements, it may be cause for taking action
towards professional negligence.
The article students have to be very careful as well as knowledgeable while executing audit
assignment under the supervision and direction of the Senior/Principal. They have to be
continuously trained on its proper execution. Documentation plays an important role in this.
I am really happy to see that two of our brilliant students Ms. Amrutha Thilakan (CA Inter) and
Ms. Nimisha K S (CA Inter) have come out with a very useful Audit Check List in respect of
statutory audit of MSME enterprises, in respect of both corporate & non-corporate entities. It is
of high utility value for CA Students and also help the auditors in ensuring that the accounts and
records have been thoroughly verified and that they are free from errors or omissions.
I really appreciate their sincere efforts in bringing out this Statutory Audit Manual which will
serve as a helping guide to those involved in audit work execution.
CA Mahadevan
***********
AUDIT MANUAL
Table of Contents
Sl.No
Particulars
1
Annexures
Pre Audit Requirements
(i)
(ii)
(iii)
(iv)
2
Declaration of Independence from Auditee Relationship by
Articled Assistant/Trainee/Staff/Partner
Fixing Materiality Level
Disclosure requirements as per Accounting Standards
Auditing Standards, Technical Guides, Implementation
Guides & Guidance Notes
Annexure 1
Annexure 2
Annexure 3
Annexure 4
Audit Checklist - Balance Sheet
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
- Share Capital
- Capital Analysis
- Reserves & Surplus
- Share Application money pending allotment
- Long Term Borrowings
- Analysis of Long Term Borrowings
- Other long term liabilities
- Long Term Provisions
- Short Term Borrowings
- Analysis of Short Term Borrowings
- Trade Payables
- Details of Invoice and compliance with Section 16(2)
of the GST Act
- Other Current Liabilities
- Short Term Provisions
- Property, Plant & Equipment and Intangible assets
- Analysis of Short Fixed Assets
- Investments (Non-Current)
- Long term loans & Advances
- Other Non-Current Assets
- Ageing Schedule
- Current Investments
- Inventories
- Stock Particulars
- Trade Receivables
- Ageing Schedule
- Cash & Cash Equivalents
- Bank Analysis
- Short term loans & Advances
- Other Current Assets
- Contingent Liabilities & Commitments
Annexure 5
Annexure 6
Annexure 6
Annexure 7
Annexure 8
Annexure 9
Annexure 10
Annexure 11
Annexure 12
Page No
3
Audit Checklist - Profit and Loss Account
22 - Revenue From Operations
- GST Analysis
23
24
25
26
27
28
- Gross Profit Ratio Analysis
- Other Income
- 26AS/AIS/TIS Vs Accounts Analysis
- Cost of Material Consumed
- GSTR 2A Analysis
- Stock Particulars
- Employee benefit Expenses
- ESI Analysis
- EPF Analysis
- Employee wise Salary Analysis
- Month wise Salary Analysis
- Finance Cost
- Depreciation/Amortization
- Other Expenses
- TDS Applicability
- Deferred Tax Calculation
4
Additional Regulatory Information
5
Audit Checklist - Others
29 - Analytical Procedures
- Gross Profit Ratio Analysis
- Ratio Analysis
30 - Important Sites to refer
31 - Important Pronouncements of ICAI
- Disclosure requirements as per Accounting Standards
- Auditing Standards, Technical Guides, Implementation
Guides & Guidance Notes
32 - Applicable Laws
35 - Post Audit Requirements
Annexure 13 to
13E
Annexure 14
Annexure 15
Annexure 16
Annexure 10
Annexure 17
Annexure 17A
Annexure 18
Annexure 18A
Annexure 19
Annexure 20
Annexure 14
Annexure 21
Annexure 3
Annexure 4
AUDIT CHECKLIST
1.PRE AUDIT REQUIREMENTS
SL NO
CHECKLIST
Knowledge about the client :SA 315
Knowledge about the business : SA 315
Check Auditor's Appointment (Obtain Appointment
3
Letter)
Download the data from ROC site and ensure all
(i) documents with reference to previous AGM has been
filed
Check year upto which Auditor's appointment has
(ii) been made and it is valid for the current period of
Audit
Check whether NOC has been obtained from Previous
4
auditor (in the case of a new client)
Obtain Engagement Letter duly accepted
5
Engagement Team Formation (Engagement Team
consist of Signing Partner, Qualified and Semi
Qualified Assistants and other Assistants.
6
Qualification and competence of Engagement Team
should be ensured)
Declaration of Independence from Engagement Team
7
in the Annexure 1 format
Fixing materiality level as part of risk assessment. To
8
be Analysed in the format Annexure 2
Opening Balance Verification [Except in the case of
first year, opening balances to be verified with
9
reference to previous year audited finanacial
statement]
1
2
10
Audit Documentation (To start simultaneously along
with verification.All documentory evidences /
workings etc.should be filed in the Audit file folders
so that the same can be retrived fast when required.)
Prepare Specific Audit Programme for the entity
taking into consideration the transactions occurred
11
during the period of audit Applicability of Accounting Standards (AS)
(i)
(Annexure 3)
Applicability of Standards on Auditing (SA s)
(ii)
(Annexure 4)
APPLICABLE TO
NON
CORPORATE
CORPORATE
ENTITIES
ENTITIES
a
a
a
a
a
a
a
r
a
r
a
a
a
a
a
a
a
a
a
a
a
a
a
a
a
a
a
a
a
a
Annexure 1
Addressed to :
Firm Name
Address
[Date]
Declaration of Independence from Auditee Relationship by Articled
Assistant/Trainee/Staff/Partner
I, [Name of Student/ Trainee/ Staff / Partner], a Student/ Trainee/ Staff / Partner at [Name of Audit Firm],
hereby declare my independence from any relationship with the [Name of Auditee]
I confirm that I have no financial, familial, employment, business, or any other type of relationship with
the auditee that may impair my independence or create a conflict of interest.
As a Student/ Trainee/ Staff / Partner, I am aware of the importance of independence in performing my
responsibilities as part of the audit engagement team. I am committed to upholding the principles of
integrity, objectivity, and independence as outlined in the Code of Ethics for Professional Accountants
and other relevant professional standards.
I understand that my independence is crucial in maintaining the public's trust in the auditing profession
and ensuring the credibility and reliability of financial information. I will diligently adhere to the
independence requirements and guidelines set forth in the firm, and the relevant professional bodies
during my training or employment.
I assure that I will disclose any potential conflicts of interest, if any, including relationships with the
auditee, to my employer, [Name of Audit Firm]. I am committed to maintaining my independence and
will exercise due care based solely on the facts and circumstances of the audit engagement, without any
bias or undue influence.
I understand that any breach of my independence obligations may result in disciplinary action, including
termination of my employment or training with [Name of Audit Firm], and may have legal and
professional consequences.
I affirm that this declaration is made voluntarily and without any duress or coercion. I am dedicated to
upholding the highest ethical standards as a Student/ Trainee/ Staff / Partner and will continue to
prioritize independence in my work.
Sincerely,
[Your Name]
[Your Designation
[Your Signature]
Annexure 1
Addressed to :
Firm Name
Address
[Date]
Annual Declaration of Independence from Auditee Relationship by Student/ Trainee/ Staff/
Partner
I, [Name of Student/ Trainee/ Staff/ Partner], a Student/ Trainee/ Staff/ Partner at
Mahadevan & Hari Chartered Accountants hereby declare my independence from any
relationship with the auditees (List Attached as Annexure & shown to me)
I confirm that I have no financial, familial, employment, business, or any other type of
relationship with the auditee that may impair my independence or create a conflict of interest.
As a Student/ Trainee/ Staff/ Partner, I am aware of the importance of independence in
performing my responsibilities as part of the audit engagement team. I am committed to
upholding the principles of integrity, objectivity, and independence as outlined in the Code of
Ethics for Professional Accountants and other relevant professional standards.
I understand that my independence is crucial in maintaining the public's trust in the auditing
profession and ensuring the credibility and reliability of financial information. I will diligently
adhere to the independence requirements and guidelines set forth in the firm, and the relevant
professional bodies during my training or employment.
I assure that I will disclose any potential conflicts of interest, if any, including relationships with
the auditee, to my employer, [Name of Audit Firm]. I am committed to maintaining my
independence and will exercise due care based solely on the facts and circumstances of the
audit engagement, without any bias or undue influence.
I understand that any breach of my independence obligations may result in disciplinary action,
including termination of my employment or training with [Name of Audit Firm], and may have
legal and professional consequences.
I affirm that this declaration is made voluntarily and without any duress or coercion. I am
dedicated to upholding the highest ethical standards as a Student/ Trainee/ Staff / Partner and
will continue to prioritize independence in my work.
Sincerely,
[Your Name]
[Your Designation]
[Your Signature]
ANNEXURE 2
XYZ Ltd
FY 20XX-20YY
FIXING MATERIALITY LEVEL
Sl.No
Basis
Gross
Amount
Materiality
Materiality % Amount (In
Lakhs
Least of the following:
1
Total Turnover/Gross Receipts
xxx
xxx
xxx
2
Total Assets
xxx
xxx
xxx
3
Profit before Tax
xxx
xxx
xxx
Note:Also make it flexible to consider any other aspect requiring deep checking. Where
wide variations are observed.
Engagement Partner
Name
Date
ANNEXURE 3
Accounting Standards
Note:- For detailed guidance on Disclosure Requirements, refer "Accounting Standards (AS) : Disclosures Checklist (Revised
October, 2022)" issued by ICAI
Particulars
AS
Disclosure of Accounting Policies :
AS 1
a) All significant accounting policies adopted in the preparation and presentation of financial statements should be
disclosed
b) The disclosure of the significant accounting policies as such should form part of the financial statements and the
significant accounting policies should normally be disclosed in one place.
c)
Any change in the accounting policies which has a material effect in the current period or which is reasonably
expected to have a material effect in later periods should be disclosed. In the case of a change in accounting policies
which has a material effect in the current period, the amount by which any item in the financial statements is affected
by such change should also be disclosed to the extent ascertainable. Where such amount is not ascertainable, wholly
or in part, the fact should be indicated.
d) If the fundamental accounting assumptions, viz. Going Concern, Consistency and Accrual are followed in financial
statements, specific disclosure is not required. If a fundamental accounting assumption is not followed, the fact
should be disclosed.
AS 2
AS 3
Valuation of Inventories
The financial statements should disclose:
a) the accounting policies adopted in measuring inventories, including the cost formula used;
b) the total carrying amount of inventories and its classification appropriate to the enterprise.
Cash Flow Statements
Whether the Cash Flow Statement discloses the cash flows during the period classified by operating, investing and
financing activities in a manner which is most appropriate to the business of the enterprise for each period for which
financial statements are presented.
Whether reporting of cash flows from operating activities has been made by the enterprise under:
(i) Direct method (preferable); or
(ii) Indirect method.
If reported under direct method, whether:
(i) major classes of gross cashreceipts from operating activities are disclosed separately.
(ii) major classes of gross cash payments of operating activities are disclosed separately.
If reported under indirect method, whether net profit or loss is adjusted for the effects of:
(i) transactions of a non-cash nature.
(ii) any deferrals of past operating cash receipts or payments.
(iii) any accruals of future operating cash receipts or payments.
(iv) items of income associated with investing cash flows.
(v) items of income associated with financing cash flows.
(vi) items of expenses associated with investing cash flows.
(vii) items of expenses associated with financing cash flows.
If reported under indirect method, whether net profit or loss is adjusted for the effects of:
(i) transactions of a non-cash nature.
(ii) any deferrals of past operating cash receipts or payments.
(iii) any accruals of future operating cash receipts or payments.
(iv) items of income associated with investing cash flows.
(v) items of income associated with financing cash flows.
(vi) items of expenses associated with investing cash flows.
(vii) items of expenses associated with financing cash flows.
Whether the net cash flow from operating activities is presented by showing:
(i) the operating revenues excluding non-cash items disclosed in the Statement of Profit and Loss.
(ii) operating expenses excluding non-cash items disclosed in the Statement of Profit and Loss.
(iii) changes during the period in:
(a) inventories.
(b) operating receivables.
(c) operating payables.
Whether separate reporting of major classes of gross cash receipts and gross cash payments arising from investing and
financing activities has been made, except to the extent that cash flows described in points 6 and 7 below, are reported
on a net basis.
Reporting cash flows on a net basis:
(i) Whether the cash receipts and payments on behalf of customers when the cash flows reflect the activities of the
customer rather
than those of the enterprise in respect of the following activities are reported on a net basis:
(a) Operating activities.
(b) Investing activities.
(c) Financing activities.
(ii) Whether the cash receipts and payments for items in which the turnover is quick, amounts are large and the
maturities are short in respect of the following activities are reported on a net basis:
(a) Operating activities.
(b) Investing activities.
(c) Financing activities
Whether the cash flows arising from each of the following activities of a financial enterprise are reported on net basis:
(i) Cash receipts and payments for the acceptance and repayment of deposits with a fixed maturity date.
(ii) The placement of deposits with and withdrawal of deposits from other financial enterprises.
(iii) Cash advances and loans made to customers and the repayment of those advances and loans.
Foreign Currency Cash Flows:
(i) Whether the effect of changes in exchange rates on cash and cash equivalents held in a foreign currency is reported
as a separate part of the reconciliation of the changes in cash and cash equivalents during the period (i.e.reconciliation
of cash and cash equivalents at the beginning and at the end of the period).
(ii) Whether the effect of changes in the exchange rate in (i) above has been reported separately from cash flows from:
(a) Operating activities.
(b) Investing activities.
(c) Financing activities.
Extraordinary items:
Whether the cash flows associated with extraordinary items have been appropriately classified as arising from the
following activities and separately disclosed:
(a) Operating activities.
(b) Investing activities.
(c) Financing activities
Interests and Dividends:
(i) Whether separate disclosure of cash flows from interest and dividends received and paid has been made.
(ii) Whether the total amount of interest paid during the period has been disclosed in the cash flow statement and the
same has been
recognised as an expense in the statement of profit and loss or capitalised in accordance with Accounting Standard
(AS) 16, Borrowing Costs.
Taxes on income:
(i) Whether cash flows arising from taxes on income are:
(a) separately disclosed.
(b) classified as cash flows from operating activities unless they can be specifically identified with financing and
investing activities.
(ii) In case cash flows from taxes on income have been disclosed separately as cash flows from operating activities,
financing
activities and investing activities, whether total amount of taxes paid is disclosed.
Hedging:
When a contract is accounted for as a hedge of an identifiable position, whether the cash flows of the contract are
classified in the same manner as the cash flows of the position being hedged.
Acquisitions and disposals of subsidiaries and other business units:
(i) Whether the aggregate cash flows arising from acquisitions of subsidiaries or other business units have been:
(a) presented separately as a single line item.
(b) classified as investing activities.
(ii) Whether the aggregate cash flows from disposals of subsidiaries or other business units have been:
(a) presented separately as a single line item.
(b) classified as investing activities.
Note - The cash flow effects of
disposals should not be deducted
from those of acquisitions.
(iii)In respect of acquisitions of subsidiaries or other business units during the period, whether the following have
been disclosed:
(a) the total purchase consideration.
(b) the portion of the purchase consideration discharged by means of cash and cash equivalents.
(iv)In respect of disposal of subsidiaries or other business units during the period, whether the following have been
disclosed:
(a) the total disposal consideration.
(b) the portion of disposal consideration discharged by means of cash and cash equivalents.
Non-Cash Transactions:
(i) Whether the investing transactions that do not require the use of cash or cash equivalents:
(a) have been excluded from cash flow statement.
(b) have been disclosed elsewhere in the financial statements in a way that provides all the relevant information about
these investing activities.
(ii) Whether the financing transactions that do not require the use of cash or cash equivalents:
(a) have been excluded from cash flow statements.
(b) have been disclosed elsewhere in the financial statements in a way that provides all the relevant information about
these financial activities.
Components of Cash and Cash
Equivalents:
(i) Whether the enterprise has disclosed the components of cash and cash equivalents.
(ii) Whether the enterprise has presented a reconciliation of the amounts in its cash flow statements with equivalent
items
reported in the balance sheet.
(iii) Whether the effect of any change in the policy for determining components of cash and cash equivalents is
reported in accordance with AS 5, ‘Net Profitor Loss for the Period, Prior Period Items and Changes in Accounting
Policies’.
Other Disclosures:
Whether the enterprise has disclosed, together with a commentary by management, the amount of significant cash
and cash equivalent balances held by the enterprise that are not available for use by it. (e.g., cash & cash equivalents
held by a branch that operates in a country where exchange controls or other legal restrictions apply.)
Encouraged disclosures (Nonmandatory)
Whether additional information that may be relevant to users in understanding the financial position and liquidity of
an enterprise, has been disclosed.
Note- Disclosure of this information, together with a commentary by management, is encouraged and may include:
(i) amount of undrawn borrowing facilities that may be available for future operating activities and to settle capital
commitments, ndicating any restrictions on the use of these facilities.
(ii) aggregate amount of cash flows that represent increases in operating capacity separately from those cash flows
that are required to maintain operating capacity
Exemptions/relaxations for MSMEs
AS 3 is not mandatory for Micro, Small and Medium Sized Enterprises (Level IV, Level III and Level II non- company
entities). Such entities are however encouraged to comply with this standard.
As per the definition of ‘financial statements’ under the Companies Act,2013, financial statements includecash flow
statement. In case of one person company, small company and dormant company, financial statements may not
include cash flow statements
AS 4
1
Contingencies and events occuring after the balance sheet
The amount of a contingent loss should be provided for by a charge in the statement of profit and loss if:
a) it is probable that future events will confirm that, after taking into account any related probable recovery, an asset has
been impaired or a liability has been incurred as at the balance sheet date, and
b) a reasonable estimate of the amount of the resulting loss can be made.
The existence of a contingent loss should be disclosed in the financial statements if either of the conditions in
paragraph 10 is not met, unless the possibility of a loss is remote.
2
3
Contingent gains should not be recognized in the financial statements.
AS 5
Net Profit or Loss for the period, prior period items and Changes in Accounting Policies
Any change in an accounting policy which has a material effect should be disclosed. The impact of, and the
adjustments resulting from, such change, if material, should be shown in the financial statements of the period in
which such change is made, to reflect the effect of such change. Where the effect of such change is not ascertainable,
wholly or in part, the fact should be indicated. If a change is made in the accounting policies which has no material
effect on the financial statements for the current period but which is reasonably expected to have a material effect in
later periods, the fact of such change should be appropriately disclosed in the period in which the change is adopted.
AS 7
1
Construction Contracts
An enterprise should disclose:
a) the amount of contract revenue recognised as revenue in the period;
b) the methods used to determine the contract revenue recognised in the period; and
c)
2
the methods used to determine the stage of completion of contracts in progress.
An enterprise should disclose the following for contracts in progress at the reporting date:
a) the aggregate amount of costs incurred and recognised profits (less recognised losses) upto the reporting date;
b) the amount of advances received; and
c) the amount of retentions.
AS 9
Revenue Recognition
In addition to the disclosures required by Accounting Standard 1 on ‘Disclosure of Accounting Policies’ (AS 1), an
enterprise should also disclose the circumstances in which revenue recognition has been postponed pending the
resolution of significant uncertainties
AS 10
Property, Plant and Equipment
The following information should be disclosed in the financial statements:
a) gross and net book values of fixed assets at the beginning and end of an accounting period showing additions,
disposals, acquisitions and other movements;
b) expenditure incurred on account of fixed assets in the course of construction or acquisition; and
c) revalued amounts substituted for historical costs of fixed assets, the method adopted to compute the revalued
amounts, the nature of indices used, the year of any appraisal made, and whether an external valuer was involved, in
case where fixed assets are stated at revalued amounts.
AS 11
1
a)
b)
2
The Effects of changes in Foreign Exchange Rates
An enterprise should disclose:
the amount of exchange differences included in the net profit or loss for the period; and
net exchange differences accumulated in foreign currency translation reserve as a separate component of
shareholders’ funds, and a reconciliation of the amount of such exchange differences at the beginning and end of the
period.
When the reporting currency is different from the currency of the country in which the enterprise is domiciled, the
reason for using a different currency should be disclosed. The reason for any change in the reporting currency should
also be disclosed.
When there is a change in the classification of a significant foreign operation, an enterprise should disclose:
3
a) the nature of the change in classification;
b) the reason for the change;
c) the impact of the change in classification on shareholders’ funds; and
d) the impact on net profit or loss for each prior period presented had the change in classification occurred at the
beginning of the earliest period presented.
AS 12
Accounting for Government Grants
The following should be disclosed:
a) the accounting policy adopted for government grants, including the methods of presentation in the financial
statements;
b) the nature and extent of government grants recognised in the financial statements, including grants of non-monetary
assets given at a concessional rate or free of cost.
AS 13
Accounting for Investments
The following information should be disclosed in the financial statements:
a) the accounting policies for determination of carrying amount of investments;
b) classification of investments as specified in paragraphs 26 and 27 above;
c) the amounts included in profit and loss statement for:
i) interest, dividends (showing separately dividends from subsidiary companies), and rentals on investments showing
separately such income from long term and current investments. Gross income should be stated, the amount of
income tax deducted at source being included under Advance Taxes Paid;
ii) profits and losses on disposal of current investments and changes in the carrying amount of such investments; and
iii) profits and losses on disposal of long term investments and changes in the carrying amount of such investments;
d) significant restrictions on the right of ownership, realisability of investments or the remittance of income and proceeds
of disposal;
e) the aggregate amount of quoted and unquoted investments, giving the aggregate market value of quoted
investments;
f) other disclosures as specifically required by the relevant statute governing the enterprise.
AS 14
1
Accounting for Amalgamations
For all amalgamations, the following disclosures should be made in the first financial statements following the
amalgamation:
a) names and general nature of business of the amalgamating companies;
b) effective date of amalgamation for accounting purposes;
c) the method of accounting used to reflect the amalgamation;
d) particulars of the scheme sanctioned under a statute.
2
3
For amalgamations accounted for under the pooling of interests method, the following additional disclosures should
be made in the first financial statements following the amalgamation:
a) description and number of shares issued, together with the percentage of each company’s equity shares exchanged to
b) the amount of any difference between the consideration and the value of net identifiable assets acquired, and the
treatment thereof.
For amalgamations accounted for under the purchase method, the following additional disclosures should be made in
the first financial statements following the amalgamation:
a)
consideration for the amalgamation and a description of the consideration paid or contingently payable; and
b)
the amount of any difference between the consideration and the value of net identifiable assets acquired, and the
treatment thereof including the period of amortisation of any goodwill arising on amalgamation.
AS 15
1
Employee Benefits ( Revised 2005)
Short Term Employee Benefits :
Although this Standard does not require specific disclosures about short-term employee benefits, other Accounting
Standards may require disclosures. For example, where required by AS 18 Related Party Disclosures an enterprise
discloses information about employee benefits for key management personnel.
Post-employment Benefits: Defined Contribution Plans and Defined Benefit Plans
2
a)
b)
An enterprise should disclose the amount recognised as an expense for defined contribution plans.
Where required by AS 18 Related Party Disclosures an enterprise discloses information about contributions to defined
contribution plans for key management personnel
Other Long Term Employee Benefits
3
Although this Standard does not require specific disclosures about other long-term employee benefits, other
Accounting Standards may require disclosures, for example, where the expense resulting from such benefits is of such
size, nature or incidence that its disclosure is relevant to explain the performance of the enterprise for the period (see
AS 5 Net Profit or Loss for the Period, Prior Period Items and Changes in Accounting Policies). Where required by AS
18 Related Party Disclosures an enterprise discloses information about other long-term employee benefits for key
management personnel
4
Termination Benefits
a) Where there is uncertainty about the number of employees who will accept an offer of termination benefits, a
contingent liability exists. As required by AS 29, Provisions, Contingent Liabilities and Contingent Assets an
enterprise discloses information about the contingent liability unless the possibility of an outflow in settlement is
remote.
b)
c)
As required by AS 5, Net Profit or Loss for the Period, Prior Period Items and Changes in Accounting Policies an
enterprise discloses the nature and amount of an expense if it is of such size, nature or incidence that its disclosure is
relevant to explain the performance of the enterprise for the period. Termination benefits may result in an expense
needing disclosure in order to comply with this requirement.
Where required by AS 18, Related Party Disclosures an enterprise discloses information about termination benefits
for key management personnel.
AS 16
Borrowing Costs
The financial statements should disclose:
a) the accounting policy adopted for borrowing costs; and
b) the amount of borrowing costs capitalised during the period.
AS 17
Segment Reporting
An enterprise should disclose the following for each reportable segment:
a) segment revenue, classified into segment revenue from sales to external customers and segment revenue from
transactions with other segments;
segment result;
total carrying amount of segment assets;
total amount of segment liabilities;
total cost incurred during the period to acquire segment assets that are expected to be used during more than one
period (tangible and intangible fixed assets);
f) total amount of expense included in the segment result for depreciation and amortisation in respect of segment assets
for the period; and
g
total amount of significant non-cash expenses, other than depreciation and amortisation in respect of segment assets,
that were included in segment expense and, therefore, deducted in measuring segment result.
b)
c)
d)
e)
AS 18
Related party Disclosures
a) Name of the related party and nature of the related party relationship where control exists should be disclosed
irrespective of whether or not there have been transactions between the related parties.
b)
If there have been transactions between related parties, during the existence of a related party relationship, the
reporting enterprise should disclose the following:
(i) the name of the transacting related party;
(ii) a description of the relationship between the parties;
(iii) a description of the nature of transactions;
(iv) volume of the transactions either as an amount or as an appropriate proportion;
(v) any other elements of the related party transactions necessary for an understanding of the financial statements;
(vi) the amounts or appropriate proportions of outstanding items pertaining to related parties at the balance sheet
date and provisions for doubtful debts due from such parties at that date; and
(vii) amounts written off or written back in the period in respect of debts due from or to related parties.
AS 19
1
Leases
The lessor should, in addition to the requirements of AS 6, Depreciation Accounting and AS 10, Accounting for Fixed
Assets, and the governing statute, make the following disclosures for operating leases:
a) for each class of assets, the gross carrying amount, the accumulated depreciation and accumulated impairment losses
at the balance sheet date; and
(b)
c)
(d)
(e)
2
(i) the depreciation recognised in the statement of profit and loss for the period;
(ii) impairment losses recognised in the statement of profit and loss for the period;
(iii) impairment losses reversed in the statement of profit and loss for the period;
the future minimum lease payments under non-cancellable operating leases in the aggregate and for each of the
(i) not later than one year;
(ii) later than one year and not later than five years;
(iii) later than five years;
total contingent rents recognised as income in the statement of profit and loss for the period;
a general description of the lessor’s significant leasing arrangements; and
accounting policy adopted in respect of initial direct costs
The lessee should, in addition to the requirements of AS 10,Accounting for Fixed Assets, AS 6, Depreciation
Accounting, and the governing statute, make the following disclosures for finance leases:
assets acquired under finance lease as segregated from the assets owned;
(b) for each class of assets, the net carrying amount at the balance sheet date;
(c) a reconciliation between the total of minimum lease payments at the balance sheet date and their present value. In
addition,an enterprise should disclose the total of minimum lease payments at the balance sheet date, and their
present value, for each of the following periods:
not later than one year;
(ii) later than one year and not later than five years;
(iii) later than five years;
d)contingent rents recognised as expense in the statement of profit and loss for the period;
AS 20
1
Earning Per share
An enterprise should present basic and diluted earnings per share on the face of the statement of profit and loss for
each class of equity shares that has a different right to share in the net profit for the period. An enterprise should
present basic and diluted earnings per share with equal prominence for all periods presented.
2
This Standard requires an enterprise to present basic and diluted earnings per share, even if the amounts disclosed
are negative (a loss per share).
3
If the number of equity or potential equity shares outstanding increases as a result of a bonus issue or share split or
decreases as a result of a reverse share split (consolidation of shares), the calculation of basic and diluted earnings per
share should be adjusted for all the periods presented. If these changes occur after the balance sheet date but before
the date on which the financial statements are approved by the board of directors, the per share calculations for those
financial statements and any prior period financial statements presented should be based on the new number of
shares. When per share calculations reflect such changes in the number of shares, that fact should be disclosed.
In addition to the above an enterprise should disclose the following:
where the statement of profit and loss includes extraordinary items (within the meaning of AS 5, Net Profit or Loss
for the Period, Prior Period Items and Changes in Accounting Policies), the enterprise should disclose basic and
diluted earnings per share computed on the basis of earnings excluding extraordinary items (net of tax expense); and
1
(a) the amounts used as the numerators in calculating basic and diluted earnings per share, and a reconciliation of
those amounts to the net profit or loss for the period;
2
(b) the weighted average number of equity shares used as the denominator in calculating basic and diluted earnings
per share, and a reconciliation of these denominators to each other; and
(c) the nominal value of shares along with the earnings per share figures.
If an enterprise discloses, in addition to basic and diluted earnings per share, per share amounts using a reported
component of net profit other than net profit or loss for the period attributable to equity shareholders, such amounts
should be calculated using the weighted average number of equity shares determined in accordance with this
Standard. If a component of net profit is used which is not reported as a line item in the statement of profit and loss, a
reconciliation should be provided between the component used and a line item which is reported in the statement of
profit and loss. Basic and diluted per share amounts should be disclosed with equal prominence.
3
AS 21
Consolidated Financial Statements
The followingdisclosures should be made:
a)
in consolidated financial statements a list of all subsidiaries including the name, country of incorporation or
residence, proportion of ownership interest and, if different, proportion of voting power held;
b) in consolidated financial statements, where applicable:
(i) the nature of the relationship between the parent and a subsidiary, if the parent does not own, directly or indirectly
through subsidiaries, more than one-half of the voting power of the subsidiary;
(ii) the effect of the acquisition and disposal of subsidiaries on the financial position at the reporting date, the results
for the reporting period and on the corresponding amounts for the preceding period; and
(iii) the names of the subsidiary(ies) of which reporting date(s) is/are different from that of the parent and the
difference in reporting dates.
c) Consolidated financial statements should be prepared using uniform accounting policies for like transactions and
other events in similar circumstances. If it is not practicable to use uniform accounting policies in preparing the
consolidated financial statements, that fact should be disclosed together with the proportions of the items in the
consolidated financial statements to which the different accounting policies have been applied.
AS 22
1
Accounting for Taxes on Income
An enterprise should offset assets and liabilities representing current tax if the enterprise:
a) has a legally enforceable right to set off the recognised amounts; and
b) intends to settle the asset and the liability on a net basis.
An enterprise should offset deferred tax assets and deferred tax liabilities if:
2
a) the enterprise has a legally enforceable right to set off assets against liabilities representing current tax; and
the deferred tax assets and the deferred tax liabilities relate to taxes on income levied by the same governing taxation
laws.
b)
3
Deferred tax assets and liabilities should be distinguished from assets and liabilities representing current tax for the
period. Deferred tax assets and liabilities should be disclosed under a separate heading in the balance sheet of the
enterprise, separately from current assets and current liabilities
4
The break-up of deferred tax assets and deferred tax liabilities into major components of the respective balances
should be disclosed in the notes to accounts.
5
The nature of the evidence supporting the recognition of deferred tax assets should be disclosed, if an enterprise has
unabsorbed depreciation or carry forward of losses under tax laws.
AS 23
Accounting for Invetments in Associates in consolidated Financial Statements
Investments in associates were equity method is not followed should be accounted for in accordance with Accounting
Standard (AS) 13, Accounting for Investments. The reasons for not applying the equity method in accounting for
investments in an associate should be disclosed in the consolidated financial statements.
1.
Goodwill/capital reserve arising on the acquisition of an associate by an investor should be included in the carrying
amount of investment in the associate but should be disclosed separately.
2.
In addition to the disclosures mentioned above an appropriate listing and description of associates including the
proportion of ownership interest and, if different, the proportion of voting power held should be disclosed in the
consolidated financial statements.
3.
Investments in associates accounted for using the equity method should be classified as long-term investments and
disclosed separately in the consolidated balance sheet. The investor’s share of the profits or losses of such investments
should be disclosed separately in the consolidated statement of profit and loss. The investor’s share of any
extraordinary or prior period items should also be separately disclosed.
4.
The name(s) of the associate(s) of which reporting date(s) is/are different from that of the financial statements of an
investor and the differences in reporting dates should be disclosed in the consolidated financial statements.
5.
In case an associate uses accounting policies other than those adopted for the consolidated financial statements for
like transactions and events in similar circumstances and it is not practicable to make appropriate adjustments to the
associate’s financial statements, the fact should be disclosed along with a brief description of the differences in the
accounting policies.
6.
AS 24
I
1.
Discontinuing Operations
Initial Disclosure
An enterprise should include the following information relating to a discontinuing operation in its financial
statements beginning with the financial statements for the period in which the initial disclosure event occurs:
(a) description of the discontinuing operation(s);
the business or geographical segment(s) in which it is reported as per AS 17, Segment Reporting;
the date and nature of the initial disclosure event;
the date or period in which the discontinuance is expected to be completed if known or determinable;
the carrying amounts, as of the balance sheet date, of the total assets to be disposed of and the total liabilities to be
the amounts of revenue and expenses in respect of the ordinary activities attributable to the discontinuing operation
(f) during the current financial reporting period;
(b)
(c)
(d)
(e)
the amount of pre-tax profit or loss from ordinary activities attributable to the discontinuing operation during the
(g) current financial reporting period, and the income tax expenses related thereto; and
the amounts of net cash flows attributable to the operating, investing, and financing activities of the discontinuing
(h) operation during the current financial reporting period.
II
Other Disclosures
When an enterprise disposes of assets or settles liabilities attributable to a discontinuing operation or enters into
1 binding agreements for the sale of such assets or the settlement of such liabilities, it should include, in its financial
(a) for any gain or loss that is recognised on the disposal of assets or settlement of liabilities attributable to the
discontinuing operation, (i) the amount of the pre-tax gain or loss and (ii) income tax expense relating to the gain or
loss; And
the net selling price or range of prices (which is after deducting expected disposal costs) of those net assets for which
the enterprise has entered into one or more binding sale agreements, the expected timing of receipt of those cash flows
and the carrying amount of those net assets on the balance sheet date.
(b)
III
Updating the Disclosures
1.
In addition to the disclosures mentioned above an enterprise should include, in its financial statements, for periods
subsequent to the one in which the initial disclosure event occurs, a description of any significant changes in the
amount or timing of cash flows relating to the assets to be disposed or liabilities to be settled and the events causing
those changes.
2.
If an enterprise abandons or withdraws from a plan that was previously reported as a discontinuing operation, that
fact, reasons therefor and its effect should be disclosed.
3.
The disclosures mentioned above should be presented in the notes to the financial statements except the following
which should be shown on the face of the statement of profit and loss:
the amount of pre-tax profit or loss from ordinary activities attributable to the discontinuing operation during the
(a) current financial reporting period, and the income tax expense related thereto
(b) the amount of the pre-tax gain or loss recognised on the disposal of assets or settlement of liabilities attributabl
AS 25 Interim Financial Reporting
I Disclosure in Annual Financial Statements
If an estimate of an amount reported in an interim period is changed significantly during the final interim period of
the financial year but a separate financial report is not prepared and presented for that final interim period, the nature
and amount of that change in estimate should be disclosed in a note to the annual financial statements for that
1 financial year.
AS 26
I
1
Intangible Assets
General
The financial statements should disclose the following for each class of intangible assets, distinguishing between
internally generated intangible assets and other intangible assets:
(a) the useful lives or the amortisation rates used;
(b) the amortisation methods used;
(c)
(d)
(i)
(ii)
(iii)
(iv)
(v)
(vi)
the gross carrying amount and the accumulated amortisation (aggregated with accumulated impairment losses) at the
beginning and end of the period;
a reconciliation of the carrying amount at the beginning and end of the period showing:
additions, indicating separately those from internal development and through amalgamation;
retirements and disposals;
impairment losses recognised in the statement of profit and loss during the period (if any);
impairment losses reversed in the statement of profit and loss during the period (if any);
amortisation recognised during the period; and
other changes in the carrying amount during the period.
2 The financial statements should also disclose:
(a) if an intangible asset is amortised over more than ten years, the reasons why it is presumed that the useful life of an
intangible asset will exceed ten years from the date when the asset is available for use. In giving these reasons, the
enterprise should describe the factor(s) that played a significant role in determining the useful life of the asset;
(b) a description, the carrying amount and remaining amortisation period of any individual intangible asset that is
material to the financial statements of the enterprise as a whole;
(c) the existence and carrying amounts of intangible assets whose title is restricted and the carrying amounts of
intangible assets pledged as security for liabilities; and
(d) the amount of commitments for the acquisition of intangible assets.
AS 27
Financial Reporting of Interests in Joint Ventures
A venturer should disclose the aggregate amount of the following contingent liabilities, unless the probability of loss
1
is remote, separately from the amount of other contingent liabilities:
(a) any contingent liabilities that the venturer has incurred in relation to its interests in joint ventures and its share in each
of the contingent liabilities which have been incurred jointly with other venturers;
(b) its share of the contingent liabilities of the joint ventures themselves for which it is contingently liable; and those
contingent liabilities that arise because the venturer is contingently liable for the liabilities of the other venturers of a
joint venture.
2
A venturer should disclose the aggregate amount of the following commitments in respect of its interests in joint
ventures separately from other commitments:
any capital commitments of the venturer in relation to its interests in joint ventures and its share in the capital
(a) commitments that have been incurred jointly with other venturers; and
3
(b) its share of the capital commitments of the joint ventures themselves.
A venturer should disclose a list of all joint ventures and description of interests in significant joint ventures. In
respect of jointly controlled entities, the venturer should also disclose the proportion of ownership interest, name and
country of incorporation or residence.
4
A venturer should disclose, in its separate financial statements, the aggregate amounts of each of the assets, liabilities,
income and expenses related to its interests in the jointly controlled entities.
AS 28
1
Impairment of Assets
For each class of assets, the financial statements should disclose:
a) the amount of impairment losses recognised in the statement of profit and loss during the period and the line item(s)
of the statement of profit and loss in which those impairment losses are included;
b) the amount of reversals of impairment losses recognised in the statement of profit and loss during the period and the
line item(s) of the statement of profit and loss in which those impairment losses are reversed;
c) the amount of impairment losses recognised directly against revaluation surplus during the period; and
d) the amount of reversals of impairment losses recognised directly in revaluation surplus during the period.
2
An enterprise that applies AS 17, Segment Reporting, should disclose the following for each reportable segment
based on an enterprise’s primary format (as defined in AS 17):
a) the amount of impairment losses recognised in the statement of profit and loss and directly against revaluation
surplus during the period; and
b) the amount of reversals of impairment losses recognised in the statement of profit and loss and directly in revaluation
surplus during the period.
3
If an impairment loss for an individual asset or a cash-generating unit is recognised or reversed during the period and
is material to the financial statements of the reporting enterprise as a whole, an enterprise should disclose:
a) the events and circumstances that led to the recognition or reversal of the impairment loss;
b)
c)
(i)
(ii)
the amount of the impairment loss recognised or reversed;
for an individual asset:
the nature of the asset; and
the reportable segment to which the asset belongs, based on the enterprise’s primary format (as defined in AS 17,
(d) for a cash-generating unit:
(i) a description of the cash-generating unit (such as whether it is a product line, a plant, a business operation, a
geographical area, a reportable segment as defined in AS 17 or other);
(ii) the amount of the impairment loss recognised or reversed by class of assets and by reportable segment based on the
enterprise’s primary format (as defined in AS 17); and
(iii) if the aggregation of assets for identifying the cash-generating unit has changed since the previous estimate of the
cash generating unit’s recoverable amount (if any), the enterprise should describe the current and former way of
aggregating assets and the reasons for changing the way the cash generating unit is identified;
(e)
whether the recoverable amount of the asset (cash-generating unit) is its net selling price or its value in use;
(f) if recoverable amount is net selling price, the basis used to determine net selling price (such as whether selling price
was determined by reference to an active market or in some other way); and
(g) if recoverable amount is value in use, the discount rate(s) used in the current estimate and previous estimate (if any)
of value in use.
4
If impairment losses recognised (reversed) during the period are material in aggregate to the financial statements of
the reporting enterprise as a whole, an enterprise should disclose a brief description of the following:
(a) the main classes of assets affected by impairment losses (reversals of impairment losses) for which no information is
disclosed under point 3; and
(b) the main events and circumstances that led to the recognition (reversal) of these impairment losses for which no
information is disclosed under point 3.
AS 29
1
a)
b)
c)
d)
2
Provisions, Contingent Liabilities and Contingrnt Assets
For each class of provision, an enterprise should disclose:
the carrying amount at the beginning and end of the period;
additional provisions made in the period, including increases to existing provisions;
amounts used (i.e. incurred and charged against the provision) during the period; and
unused amounts reversed during the period. Provided that a Small and Medium-sized Company and a Small and
Medium-sized Enterprise (Level II and Level III non-corporate entities), as defined in Appendix 1 to this
Compendium, may not comply with paragraph above.
An enterprise should disclose the following for each class of provision:
a) a brief description of the nature of the obligation and the expected timing of any resulting outflows of economic
benefits;
b) an indication of the uncertainties about those outflows. Where necessary to provide adequate information, an
enterprise should disclose the major assumptions made concerning future events, as addressed in paragraph 41; and
c) the amount of any expected reimbursement, stating the amount of any asset that has been recognised for that
expected reimbursement.
Provided that a Small and Medium-sized Company and a Small and Medium-sized Enterprise (Level II and Level III
non coperate entities), as defined in Appendix 1 to this Compendium, may not comply with paragraph above.
3
Unless the possibility of any outflow in settlement is remote, an enterprise should disclose for each class of contingent
liability at the balance sheet date a brief description of the nature of the contingent liability and, where practicable:
a) an estimate of its financial effect
b) an indication of the uncertainties relating to any outflow; and
4
c) the possibility of any reimbursement.
Where any of the information required by paragraph above is not disclosed because it is not practicable to do so, that
fact should be stated.
Annexure 4
Auditing Standards
SA
SA 200
SA 210
SA 220
SA 230
SA 240
SA 250
SA 260
SA 265
SA 299
SA 300
SA 315
SA 320
SA 330
SA 402
SA 450
SA 500
SA 501
SA 505
SA 510
SA 520
SA 530
SA 540
SA 550
SA 560
SA 570
SA 580
SA 600
SA 610
SA 620
SA 700
SA 705
SA 706
SA 710
SA 720
SA 800
SA 805
SA 810
1
2
Particulars
Overall Objectives of the Independent Auditor and the conduct of an Audit in Accordance with
Accounting Standards
Agreeing the terms of Audit Engagements
Quality control for an Audit of Financial Statements
Audit Documentation
The Auditor's responsibilities Relating to Fraud in an Audit of Financial Statements
Consideration of Laws and Regulations in an Audit of Financial Statements
Communication with those charged with governance
Communicating Deficiencies in Internal Control to Those charged With Governance and
Management
Resposibility of Joint Auditors
Planning an Audit of Financial Statements
Identifying and Assessing the Risks of Material misstatement Through understanding the entity
and its environment
Materiality in Planning and Performing an Audit
The Auditors Responses to Assessed Risks
Audit Considerations Relating to an Entity using a service organization
Evaluation of Misstatements identified during the audit
Audit Evidence
Audit Evidence -Specific Considerations for selected items
External Confirmations
Initial Audit Engagements - Opening Balances
Analytical Procedures
Audit Sampling
Auditing Accounting Estimates, Including Fair Value Accounting Estimates, and Related
Disclosures
Related parties
Subsequent Events
Going Concern
Written representation
Use the work of Another Auditor
Use the work of Internal Auditor
Use the work of an Auditor's Expert
Forming an Opinion and reporting on Financial Statements
Modifications to the opinion in the Independent Auditors Report
Emphasis of matter paragraphs and other Matter Paragraphs in the independent Auditors
Report
Comparative Information - Corresponding Figures and Comparative Financial Statements
The Auditors Responsibility in relation to other Information in Documents Containing Audited
Financial Statements
Special considerations- Audits of Fiancial statements prepared in Accordance with special
Purpose Frameworks
Special considerations- Audits of single Fiancial statements and Specific elements, Accounts or
items of a Financial Statements
Engagements to Report on summary Financial Statements.
Statements on Accounting and Auditing - All Mandatory
Statement on Auditing Practices
Statement on Reporting under section 227 (1A) of the companies Act, 1956
1
2
3
4
5
6
7
8
9
1
2
3
4
5
6
7
Sl.No
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
Technical Guides
Technical Guide to Audit in a Shared Service Centre Structure
Technical Guide on Audit of non-Banking Financial Companies ( Revised Edition 2016)
Technical Guide on Audit in Automobile Industry
Technical Guide on Audit in Telecom Industry - Revenue, Fixed Assets and Related operating
Costs
Technical Guide on E-Commerce -Considerations for Audit of Financial Statements
Technical Guide on Audit in Hotel Industry
Technical Guide on CENVAT Credit , 2016
Technical Guide on financial statements of Non-Corporate entities
Technical Guide on Digital Assurance
Implementation Guides
Implementation Guide to SA 230(Revised 2022)
Implementation Guide to Standard on Auditing (SA) 210
Agreeing the Terms of Audit Engagements
Implementation Guide to Standard on Auditing (SA) 560
Subsequent Events
Implementation Guide to Standard on Auditing (SA) 570(Revised) Going Concern
Implementation Guide to Standard on Auditing (SA) 720(Revised) The Auditor’s Responsibilities
Relating to Other Information
Implementation Guide on Reporting under Rule 11(e) and Rule 11(f) of the Companies (Audit
and Auditors) Rules, 2014
Implementation Guide on Reporting under Rule 11(g) of the Companies (Audit and Auditors)
Rules, 2014
GUIDANCE NOTES
Guidance Note
Guidance Note on the Companies (Auditor's Report ) Order, 2020 (Revised 2022 Edition)
Guidance Note on Audit of Consolidated Financial Statements ( Revised 2016)
Guidance Note on Reports or Certificates for Special Purposes (Revised 2016)
Guidance Note on Reports in Company Prospectuses (Revised 2016)
Guidance Note on Combined and Crave -Out Financial Statements (September 2016)
Guidance Note on Audit of Internal Financial Controls over Financial Reporting issued by
Auditing and Assurance standards Board
Revised Guidance notes on Reporting on Fraud under section 143(12) of the companies Act ,
2013 released by Auditing and Assurance standards Board
AASB releases Guidance note on Reporting under Section 143(3)(f) and (h) of the companies Act,
2013
Audit of Property, Plant and Equipment
Certification of XBRL Financial Statements
Audit of Accounts of Non-Corporate Entities (Bank Borrowers)
Audit of Cash and Bank Balances
Audit of Debtors, Loans and Advances
Audit of Expenses
Audit of Inventories
Audit of Investments
Audit of Liabilities
Audit of Miscellaneous Expenditure (Revised)
Audit of Payment of dividend
Audit of Revenue
Auditing of accounts of Liquidators
Capital and Reserves
Certificate on Corporate Governance (Revised)
24
25
26
27
28
29
30
31
32
33
34
35
36
37
38
39
40
41
42
43
44
45
46
47
Certificate to be issued by the auditor of a company Pursuant to companies ( Acceptance of
Deposits) Rules, 1975
Certification of Documents for egistration of Charges
Computer Assisted Audit techniques
Duty Cast on the Auditors under Section 45-MA of the RBI Act,1934
Independence of Auditors (Revised)
Preparation of Financial Statements on Letterheads and Stationery of Auditors
Provision for Proposed Dividends
Section 227(3)(e) and (f) of the companies Act, 1956 (revised)
Section 293 A of the companies Act and the Auditor
Guidance Note on Audit of banks 2017 Edition
Audit of Accounts of Members of Stock exchanges ( Revised)
Audit of Companies carrying on General Insurance Business
Audit of Companies carrying on Life Insurance Business
Guidance Note on Accounting for oil and Gas Producing Activities
Guidance Note on Accounting for Real estate Transactions (for entities to whom Ind AS is
applicable)
Guidance note on accounting for depreciation in companies in the context of Schedule II to the
companies Act, 2013
Guidance Note on Accounting for Derivative contracts (issued 2015)
50
51
52
53
54
55
56
57
58
59
Guidance Note on Accounting for Expenditure on corporate social responsibility Activities
Guidance Note on Accounting for oil and Gas Producing Activities
Guidance Note on Accounting for Corporate Dividend Tax
Guidance Note on Accounting Treatment for Excise Duty
Guidance Note on Accounting for Employee Share- based payments
Guidance Note on Accounting for State level- Value Added Tax
Guidance Note on Accounting by schools
Guidance Note on Accounting for credit Available in Respect of Minimum Alternative Tax under
the Income Tax , 1961
Guidance Note on Accounting for Real Estate Transactions
Guidance Note on Measurement of Income Tax for Interim Financial Reporting in the context of
AS 25
Guidance Note on Accounting Treatment for MODVAT/CENVAT
Guidance Note on Applicability of AS 25 to Interim Financial Results
Guidance Note on Turnover in case of contractors
Guidance Note on Accounting for Rate Regulated Activities
Guidance Note on Accounting for Self -generated certified emission Reductions
Guidance Note on Accounting and Auditing of Political Parties
Guidance Note on Terms used in financial statements
Guidance Note on Acrual Basis of Accounting
Guidance Note on Accounting by Dot -com companies
60
61
62
Guidance Note on Report under section 92E of the Income Tax Act,1961 (Transfer Pricing)
Guidance Note on tax Audit u/s 44AB of the Income Tax Act, 1961- Edition 2022
Guidance Note on Schedule III to the Companies Act,2013
48
49
AUDIT CHECKLIST
2. BALANCE SHEET
APPLICABLE TO
SL NO
PARTICULARS
CHECKLIST
CORPORATE
ENTITIES
NON CORPORATE
ENTITIES
Capital of a corporate entity include Share Capital -Paid up.
Capital of a non corporate entity include current account
and capital account. Additions to Capital & Withdrawals
through Capital/ Current / Loan A/Cs of owners
1
CAPITAL
a. Authorised Capital
1.MOA & AOA
2.ROC Site
a
a
3.If increased,whether Roc procedures have been followed
a
b.Paid up Capital
1.Whther any fresh issue of shares have been made.
2.If yes,
a
i)Check whether ROC formalities have been complied with.
a
ii)Details of shares allotted.
iii)Source of receipt to be verified
2.Whther any Increase in shares have been made.
i.If yes,
Check with PAS-3
1.Whether any additional funds have been introduced by
the partners/proprietor.
a
a
2.If yes,details & their source along with documentary
evidence.Also whether received in cash or through bank.
r
a
r
r
r
a
a
a
a
3.Whether there has been withdrawals? If yes, details
4.To be analysed in the format : Annexure 5
Note:- Disclousre requirements under Schedule III of the
Companies Act, 2013 under the head "Share Capital" - To
check and ensure
Verified by:
ET Member
Name
Date
Engagement Partner
Name
Date
ANNEXURE 5
XXX
Capital Analysis
FY 20XX-20XX
Sl.No
Particulars
Amount
Amount
(i) Opening Balance
Add:
Less:
Remarks
xxxx
(ii) Additions during the Year
(iii)
Cash:
xxx
Bank:
xxx
Cash:
xxx
xxxx 1. Source of each receipt with
documentary evidences.
2. In case of corporates:
List : Name.address & PAN of
shareholders/ Directors who
invested
Bank:
xxx
xxxx
Deletions during the year
Closing Balance (i)+(ii)-(iii)
xxxx
Drawings:
Purpose of drawings :
Large amounts : Nature & Documentary evidences be collected.
Verified by:
ET Member
Name
Date
Engagement Partner
Name
Date
AUDIT CHECKLIST
APPLICABLE TO
SL NO
PARTICULARS
CHECKLIST
CORPORATE
ENTITIES
NON CORPORATE
ENTITIES
a
r
Have the Reserves and Surplus been classified whereever
applicable under appropriate heads like:
2
RESERVE AND SURPLUS
a.Capital Reserve
b.Capital Redemption Reserve
c. Securities Premium
d. Debenture Redemption Reserve
e. Revaluation Reserve
f. Other General Reserves :
(i) Dividend Equlisation Reserve
(ii) P&L Account Balance
(iii) Other Reserves (specify)
Note:- Disclousre requirements under Schedule III of the
Companies Act, 2013 under the head "Reserves & Surpus" To check and ensure
Verified by:
ET Member
Name
Date
Engagement Partner
Name
Date
AUDIT CHECKLIST
APPLICABLE TO
SL NO
PARTICULARS
CHECKLIST
CORPORATE
ENTITIES
NON CORPORATE
ENTITIES
a
r
a
r
a
r
a
r
1.Whether there is sufficient authorised share capital to
allot the shares. If not, authorised capital to be increased,
before collecting share application money
3
SHARE APPLICATION MONEY 2. Share Application money is not pending for allotment
beyond the period as specified by law (60 days)
PENDING ALLOTEMENT
3. Mode of receipt of money (Cash receipts are not
allowed)
4. Details of persons (KYC) from whom amount has been
collected
Verified by:
ET Member
Name
Date
Engagement Partner
Name
Date
AUDIT CHECKLIST
APPLICABLE TO
SL NO
A)
PARTICULARS
CHECKLIST
CORPORATE
ENTITIES
NON CORPORATE
ENTITIES
a
a
a
r
a
a
a
a
NON CURRENT LIABILITIES
1. Whether the borrowings are secured or not?
If yes, disclose the security details
2. Whether Charge is created with ROC in respect of new
loan or check whether there is modification or satisfaction
and if yes, the same is intimated to the ROC in appropriate
form with MCA Site.
LONG TERM BORROWINGS
Term Loans :
- From Banks
- From Others
4
Deposits
-from Related Parties
Long term maturities of finance
lease
Others (Specify)
3. Whether loan confirmation/statements have been
received and matched with the books of accounts.
If No,
Obtain Reconcilation statement & check
4. Ensure that the borrowings are repayable after 12 months
from the date of loan availed only are considered under
Long Term Borrowings.
5. Ensure that the loans are in the name of entity
a
a
6. Classify the Long term borrowings with related party
and unrelated party/Refer sec 269SS ,269 ST,269 T of
income tax act 1961 and ensure they are complied with
a
a
7. Obtain statement of default in repayment of loan &
interest
a
a
8. Check Interest on loans is fully accounted
9. Check deposits are as per RBI Regulation / Companies
Act
10. To be Analysed in format : Annexure 6
a
a
a
a
11. Check whether Current Maturities of Long Term
Borrowings are classified under Short Term Borrowings
a
Note:- Check and ensure Disclosure requirements under
Schedule III of the Companies Act, 2013 under the heading
"Long Term Borrowings"
a
Verified by:
ET Member
Name
Date
Engagement Partner
Name
Date
ANNEXURE 6
XXX
FY 20XX-20XX
Long term /Short term borrowings : Banks/Institution/Others
Name of
Sl.No bank/Institut
ion
Long
term/
Short
term
Secured
/Not
Security Accoun Balance as per
details
t No.
statement
Balance
as per
books
Difference
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
Remarks
In case of difference, See
Reconcilation statement.
-Whether subsequent
settlement date to be
specified.
-In case of errors ,
adjustment audit entries to
be passed.
AUDIT CHECKLIST
APPLICABLE TO
SL NO
PARTICULARS
OTHER LONG TERM
LIABILITIES
5
(A) Trade Payables
(B) Others
CHECKLIST
CORPORATE
ENTITIES
NON CORPORATE
ENTITIES
a
a
a
a
a
a
a
a
a
r
(A) Trade Payables : Long Term
Show separately
a) Payables : for goods purchased
b) Payables : for services rendered
c) Payables : for Capital Goods
d) Payables : Others
1. Ensure that it includes only the payables after 12 months
.
2. Obtain the reason for overdue, if any
3. Obtain subsequent payment status
4. Obtain confirmation or ledger account in the books of
creditor
5.Have advance payment to creditors are segregated and
disclosed in asset side
6. Check advance received & pending more than one year
Check separately :
(i) Due to Micro & Small Enterprises : Disputed , if any
Undisputed
(ii) Others : Disputed, Undisputed
Ensure ageing analysis is done
B.Others (Specify)
1. Ensure that includes only payables due after 12 months
from the Balancesheet date.
2. Obtain subsequent payment status.
Note:- Check & Ensure : Disclosure requirements under
Schedule III of the Companies Act, 2013 under the heading
"Other Long Term Liabilities"
Verified by:
ET Member
Name
Date
Engagement Partner
Name
Date
AUDIT CHECKLIST
APPLICABLE TO
SL NO
6
PARTICULARS
LONG TERM PROVISION
CHECKLIST
CORPORATE
ENTITIES
NON CORPORATE
ENTITIES
a
a
a
a
It Includes Gratuity provision,Leave encashment and
provision for warrianties payable after 12 Months
A.Provision for Employee benefit:1.Refer AS-15 and
2.Refer AS -29
B.Others:1.Obtain the list of provision made during the year and
verify the basis of provision to ensure they are in
accordance with AS 29
Verified by:
ET Member
Name
Date
Engagement Partner
Name
Date
AUDIT CHECKLIST
APPLICABLE TO
SL NO
B)
7
PARTICULARS
CHECKLIST
CORPORATE
ENTITIES
NON CORPORATE
ENTITIES
It Includes Overdraft, Cash Credit, bank loans, Deferred
Payment Liabilities,Deposits,Loans & Advances from
Related Parties,Long Term Loans repayable within one
year.
1. Whether the borrowings are secured or not?
If yes, disclose the security details
a
a
1. If Loans are guaranteed by Directors, disclose details
a
2. If Default, disclose details of defaulted principal and
interest as on Balance Sheet Date
2. Whether Charge is created with ROC in respect of new
loan or check whether there is modification or satisfaction
& is intimated to the ROC in appropriate form with MCA
Site.
3.Applicability of Section 269 SS, 269ST, 269 T
Check Interest is charged properly
4. Whether loan confirmation / Statements have been
received and matched with the books of accounts.
If No,
Obtain Reconcilation statement & check
5. Ensure that the borrowings repayable withn 12 months
from the date of loan availed only considered under short
Term Borrowings.
6. Ensure that the loans are in the name of company, if not
report separately.
7. Obtain closure statement in case of loans closed during
the year.
8. Classify the short term borrowings with related party
and unrelated party
9.Short Term Borrowings to be analysed in the format as
per Annexure 6
Check and ensure Disclosure Requirements under Schedule
III of the Companies Act, 2013 under the head "Short term
Borrowings"
a
a
a
r
a
a
a
a
a
a
a
a
a
a
a
a
a
a
a
a
CURRENT LIABLITIES
SHORT TERM BORROWINGS
a
Verified by:
ET Member
Name
Date
Engagement Partner
Name
Date
AUDIT CHECKLIST
APPLICABLE TO
SL NO
8
PARTICULARS
TRADE PAYABLES
CHECKLIST
CORPORATE
ENTITIES
NON CORPORATE
ENTITIES
a
a
a
a
a
a
a
a
a
a
a
a
a
a
Trade payables include goods purchased on credit, for
services rendered and for capital goods etc.
Classify as MSME and Not MSME Payables
Obtain MSME Declaration/ registration details
Obtain Balance confirmation and Subsequent payment
details
Obtain Creditors Ageing
Check whether the creditors are unpaid for more than 1
year?
Check whether the creditors have debit balance
If the creditor is outstanding more than 6 months and the
input is taken on that purchase/Expense check whether ITC
claimed has been reversed. Details to be taken in the format
attached as Annexure 7
Check and ensure Disclosure Requirements under Schedule
III of the Companies Act, 2013 under the head "Short term
Borrowings"
a
Verified by:
ET Member
Name
Date
Engagement Partner
Name
Date
ANNEXURE 7
XXX
FY 20XX-20XX
Details of Invoice and compliance with Section 16(2) of the GST Act
Invoice Value
Date of payment Whether paid within 180 If No, whether ITC has been
(Including
of Invoice
days (Yes / No)
reversed in GSTR 3B (Yes/No
GST)
Sl.No
Name of
party
Invoice No
Invoice
Date
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
AUDIT CHECKLIST
APPLICABLE TO
SL NO
PARTICULARS
CHECKLIST
CORPORATE
ENTITIES
NON CORPORATE
ENTITIES
Obtain the documentory evidence and details of amounts
shown as other current liabiliteis
a
a
Check whether the followings conditions are satisfied to
OTHER CURRENT LIABILITIES clasify a item a current liability
a
a
1)It is expected to be settled in the company's normal
operating cycle
a
a
2)It is held mainly for the purpose of trade.
a
a
3)it is due to be settled within 12 months after the reporting
date
a
a
Obtain subsequent payment details
a
a
Check and ensure Disclosure Requirements under Schedule
III of the Companies Act, 2013 under the head "Short term
Borrowings"
a
It includes Trade Deposits / Security deposits – Other NonC.L/ C.L ,Other Payables ( Statutory dues Service Tax
Excise VAT)
Check whether any advance received is pending for more
than 1 year and is shown under "Trade Payables"
9
Verified by:
ET Member
Name
Date
Engagement Partner
Name
Date
AUDIT CHECKLIST
APPLICABLE TO
SL NO
PARTICULARS
CHECKLIST
CORPORATE
ENTITIES
NON CORPORATE
ENTITIES
a
a
a
a
a
a
Others-Gratuity provision-Check whether the provision is
made as per Acturial Valaution (if required)
a
a
Check AS 29 and ensure compliance
a
a
Check and ensure Disclosure Requirements under Schedule
III of the Companies Act, 2013 under the head "Short term
Borrowings"
a
It includes Provision for Dividend , for Taxation,warranties
for expenses,etc.
Provision for Employee Benefit-Check AS 15
Others-Income Tax - whether the previous year balance are
still continuing?
Obtain the list of provision for taxation and taxes paid
10
SHORT TERM PROVISIONS
Verified by:
ET Member
Name
Date
Engagement Partner
Name
Date
AUDIT CHECKLIST
APPLICABLE TO
SL NO
PARTICULARS
CHECKLIST
CORPORATE
ENTITIES
NON CORPORATE
ENTITIES
a
a
a
a
1.Check whether the payment are made through bank or
cash.If the mode is cash and exceeding the specified limit
then the depreciation is calculated excluding such cash
payments for I.T.Purposes.
a
a
2.Check whether the GST input on FA are taken or not ,
if not ,
confirm that Invoice value is taken as value of asset
a
a
3.Check whether the deprecaition is Provided as per
Companies Act 2013 - Sch :II
4.Check whether the deprecaition is Provided as per
Income tax Act 1961.
In case of deletion of plant, property or equipment,
a
r
r
a
1.Compute profit /loss on sale of plant property equipment
a
a
2.GST Liability to be confirmed
3.Check whether input is not taken in case of immovable
properties as per GST Law.
4.Check with AS 10 plant property & Equipment & ensure
compliance.
a
a
a
a
a
a
To be analysed in format as per Schedule III :Annexure 8
a
a
Check and ensure Disclosure Requirements under Schedule
III of the Companies Act, 2013 under the head "Property
Pnat & Equipment & Intangible Assets"
a
(i)To be classified under the following heads:
a) Land
b) Buildings
c) Plant & Equipment ;
d) Furniture & Fixture ;
e) Vehicles ;
f) Office Equipment ;
g) Others : Specify.
(ii) leasehold Assets, if any
(iii) Intangible Assets, if any,
(iv) Capital Work - in - Progress, if any
(v) Intangible assets under development ; if any.
It Includes tangible, intangible asset and Capital work in
progress; if any
Check the additions made during the year with invoices and
sale deed.
In case of addition to plant property equipment ,
11
PROPERTY,PLANT AND
EQUIPMENT & INTANGIBLE
ASSETS.
Verified by:
ET Member
Name
Date
Engagement Partner
Name
Date
S.I
NO
Invoice Invoice Party
No.
date
name
Date of
receipt of
asset
Date of asset
booked in
accounts
Asset
name
ANNEXURE 8
XXXX
Fixed Asset Analysis
F.Y 20XX-20XX
HSN/SA
C to
check Amount as Amount as
TDS
per bill
per Books
applicabi
lity.
Difference
Mode of
payment
Bill seen
or not
Mode of
Payment
Cash/Bank
Remarks
AUDIT CHECKLIST
APPLICABLE TO
SL NO
12
CORPORATE
ENTITIES
NON CORPORATE
ENTITIES
1.Check whether any investments were made during the
year?
2.Whether the investment are in the name of the
organisation?
3.Whether it is properly classifeid as Non current and
Current investment?
a
a
a
a
a
a
4.Is there any documemtary evidence to support the same.?
a
a
a
a
CHECKLIST
PARTICULARS
INVESTMENTS
(NON -CURRENT)
5.Check the disclosure of Value of Investment (Fair Market
Value) and the basis of verification
1. To be classified as :
(a) Trade Investments;
(b) Other Investments;
Check and ensure Disclosure Requirements under Schedule
III of the Companies Act, 2013 under the head
"Investments"
a
Verified by:
ET Member
Name
Date
Engagement Partner
Name
Date
AUDIT CHECKLIST
APPLICABLE TO
SL NO
13
PARTICULARS
CHECKLIST
LONG TERM LOANS AND
ADVANCES
1.Loans and Advances made by the organiation are properly
secured?
2.In case the Loans and Advances are not secured, identify
the reasons.
3.Check whether it satisfy the conditions to treated as long
term loans and advances.
if not, classify it as Short term loans and advances
4.Obtain Balance confirmation at the year end of the loans
and advances given
5.To be classified as :
a) Capital Advances;
b) Loans & Advances to related parties ; (including
directors, etc)
c) Other Loans & Advances
6. To be separately sub - classified as :
a) Secured, considered Good;
b) Unsecured, considered Good;
c) Doubtful.
7. Applicability of Sec: 185/186 of the Companies Act - to
check.
Check and ensure Disclosure Requirements under Schedule
III of the Companies Act, 2013 under the head "Long Term
Loans and Advances"
CORPORATE
ENTITIES
NON CORPORATE
ENTITIES
a
a
a
a
a
a
a
a
a
r
a
r
a
r
a
Verified by:
ET Member
Name
Date
Engagement Partner
Name
Date
AUDIT CHECKLIST
APPLICABLE TO
SL NO
CORPORATE
ENTITIES
NON CORPORATE
ENTITIES
1.Have you obtained a statement of Other non Current
assets showing their nature along with the supportings?
a
a
2.Check whether the item treated as non current asset
satisfy the criteria to become other non current asset
a
a
PARTICULARS
CHECKLIST
3.Check whether other non current asset are classified as
14
(i) Long - Term Trade Recievables.
(ii) Security Deposits.
OTHER NON CURRENT ASSET (iii) Others (Specify nature) - including related parties
4. To be further classified as :
a) Secured, considered Good;
b) Unsecured, considered Good;
c) Doubtful.
5. Ageing Schedule : in the attached format : Annexure 9
Check and ensure Disclosure Requirements under Schedule
III of the Companies Act, 2013 under the head "Other NonCurrent Assets"
Verified by:
ET Member
Name
Date
Engagement Partner
Name
Date
ANNEXURE 9
XXXX
F.Y 20XX-20XX
Outstanding for following periods from due date of payment
Particulars
(i) Undisputed Trade Receivablesconsidered good
(ii) Undisputed Trade Receivables considered doubtful
(iii) Disputed Trade Receivables –
considered good
(iv) Disputed Trade Receivables –
considered doubtful
Less than 6
months
6 months to 1
year
1-2 years
2-3 years
More than 3
years
Total
AUDIT CHECKLIST
APPLICABLE TO
SL NO
15
PARTICULARS
CHECKLIST
CORPORATE
ENTITIES
NON CORPORATE
ENTITIES
a
a
a
a
a
a
a
a
(i) Basis of Valuation & provision if any made
(ii) Refer : AS : 13 for compliance
CURRENT INVESTMENTS ( In (iii) List of Investments with documents & confirm.
Shares, Govt. Securities,
(iv) Ensure redemption / sale within 12 months - are
Debentures, Bonds, Mutual Funds, considered
partnership Firms, etc.
Check and ensure Disclosure Requirements under Schedule
III of the Companies Act, 2013 under the head "Current
Investments"
Verified by:
ET Member
Name
Date
Engagement Partner
Name
Date
AUDIT CHECKLIST
APPLICABLE TO
SL NO
16
PARTICULARS
INVENTORIES
CHECKLIST
CORPORATE
ENTITIES
NON CORPORATE
ENTITIES
a
a
a
a
a
a
a
a
a
a
a
a
It Includes Raw materials, WIP, Finished goods, Stores &
Spares, loose tools & others
1.Refer AS-2 & ensure compliance.
2.Refer Guidance Note on Verification of Inventories - and
ensure compliance
3.Verify the method of valuation followed by the
organisation. FIFO/Weigted average
4.Obtain Quantitative particulars of opening stock ,
Receipts,Issue and closing stock. To be analysed in format
Annexure 10
5.Shortage /leakage in excess of normal percentage to be
analysed.
6.Physical verification :- Check whether done by entity.
Check and ensure Disclosure Requirements under Schedule
III of the Companies Act, 2013 under the head
"Inventories"
Verified by:
ET Member
Name
Date
Engagement Partner
Name
Date
ANNEXURE 10
XXXX
FY 20XX-20XX
Closing Stock
Opening stock
Issue
Receipt
Closing Stock
Sl.No Stock Item
Qty/kg Value Qty/kg Value Qty/sft Value
Qty
Value
Note: 1) Leakage / Shortage to be separately quantified & analysed if % is high.
2) Each type of inventories to be analysed as above
AUDIT CHECKLIST
APPLICABLE TO
SL NO
PARTICULARS
CHECKLIST
CORPORATE
ENTITIES
NON CORPORATE
ENTITIES
a
a
a
a
a
a
a
a
1.Ageing schedule in the attached format : Annexure 11
17
TRADE RECEIVABLES
2.To be classified as :
a) Secured, considered Good;
b) Unsecured, considered Good;
c) Doubtful.
d) Provision, if any towards bad & doubtful,
e) Debts due by Directors & other related parties ;
3.Obtain Balance confirmation / account statement/
subsequent receipt details.
4.Make a list of Debtors having opening balance
continuing.
5.Check whether any receivable amounts due from realted
party
Check and ensure Disclosure Requirements under Schedule
III of the Companies Act, 2013 under the head "Trade
Receivables"
Verified by:
ET Member
Name
Date
Engagement Partner
Name
Date
ANNEXURE 11
XXXX
F.Y 20XX-20XX
Outstanding for following periods from due date of payment
Particulars
(i) Undisputed Trade Receivablesconsidered good
(ii) Undisputed Trade Receivables considered doubtful
(iii) Disputed Trade Receivables –
considered good
(iv) Disputed Trade Receivables –
considered doubtful
Less than 6
months
6 months to 1
year
1-2 years
2-3 years
More than 3
years
Total
AUDIT CHECKLIST
APPLICABLE TO
SL NO
PARTICULARS
CHECKLIST
CORPORATE
ENTITIES
NON CORPORATE
ENTITIES
a
a
a
a
a
a
a
a
a
a
a
a
a
a
1.To be classified as :
a)balance with banks
b) Cheques, drafts on hand ;
c) Cash on hand
d) Others ( specify).
2. Any ear-marked balances to be separately stated.
3.Margin Money to be disclosed separately.
4.Bank balances :
a) above 3 Months ; &
b) above 12 Months to be shown separately,
18
A.CASH
1.Confirm there is no negative cash during the year?
2.Check whether there is cash payment exceeding 10K
CASH AND CASH EQUIVALENTS during the year, if yes- obtain list
3.Check whther there is cash receipt exceeding 2L during
the year-If yes, check 269S is complied with.
B.BANK BALANCES
1.Obtain bank statements and confirmations. and analyse
in format Annexure 12
2.Whether the balance as per books is tallied with bank
statement?If no,Obtain Reconcilation statement and
subsequent clearance.
3.Obtain Closure statement in case of closed bank account.
Check and ensure Disclosure Requirements under Schedule
III of the Companies Act, 2013 under the head "Cash and
Cash Equivalents"
Verified by:
ET Member
Name
Date
Engagement Partner
Name
Date
ANNEXURE 12
XXXX
FY 20XX-20XX
BANK ANALYSIS
BANK
TYPE OF
ACCOUNT NO
ACCOUN ACCOUN
(Last 4 digits)
T NAME
T
SECURED /
NOT
SECURITY
DETAILS
RECONCILIAT
BALANCE BALANCE
ION IN CASE
AS PER
AS PER
OF
DIFFERENCE
BOOKS STATEMENT
DIFFERENCE
See Annexure:
REMARKS
AUDIT CHECKLIST
APPLICABLE TO
SL NO
19
PARTICULARS
CHECKLIST
SHORT TERM LOANS AND
ADVANCES
To be classified as :
a) Loans & advances to Related Parties ;
b) Others
To be further sub - classified as :
a) Secured, considered Good;
b) Unsecured, considered Good;
c) Doubtful.
d) Provision, if any, for bad / doubtful advances,
e) To Directors / Firm etc.
1.Loans and Advances made by the organiation-List
2.Whether they are fully recoverable
3.Check whether they satisfy the conditions to treated as
short term loans and advances.
if not, classify it as long term loans and advances
4.Obtain Balance confirmation at the year end of the loans
and advances given
5.Obtain a list of advances to Employees,realted parties and
others.
Check and ensure Disclosure Requirements under Schedule
III of the Companies Act, 2013 under the head "Short Term
Loans & Advances"
CORPORATE
ENTITIES
NON CORPORATE
ENTITIES
a
a
a
a
a
a
a
a
a
a
a
a
Verified by:
ET Member
Name
Date
Engagement Partner
Name
Date
AUDIT CHECKLIST
APPLICABLE TO
SL NO
PARTICULARS
20
OTHER CURRENT ASSETS
CHECKLIST
CORPORATE
ENTITIES
NON CORPORATE
ENTITIES
a
a
1.Any other current assets, not included under other heads,
to be included by specifyng the nature.
Verified by:
ET Member
Name
Date
Engagement Partner
Name
Date
AUDIT CHECKLIST
APPLICABLE TO
SL NO
PARTICULARS
CHECKLIST
CORPORATE
ENTITIES
NON CORPORATE
ENTITIES
a
a
1.To be classified as :
(i) Contingent Liabilities
a) Claims against the Company not acknowledged as debt ;
21
CONTINGENT LIABILITIES &
COMMITMENTS.
b) Guarantees ;
c) Others (specify)
(ii) Commitments
a) Estimated amount of contracts remaining to be executed
& not provided for,
b) Uncalled Liability on shares, etc.
c) Others (specify)
2.Refer : AS - 29 & ensure compliance.
Verified by:
ET Member
Name
Date
Engagement Partner
Name
Date
AUDIT CHECKLIST
APPLICABLE TO
SL NO
22
PARTICULARS
REVENUE FROM OPERATION
CHECKLIST
CORPORATE
ENTITIES
NON CORPORATE
ENTITIES
a
a
a
a
a
a
PROFIT AND LOSS ACCOUNT
1. To be classified as :
(a) Sale of Products
(b) Sale of services
© Other Operating Revenue
1.Verify the invoices at random and ensure there are no
discrepancies regarding Revenue
2.Check the GST Liability if the entity is registered under
GST
Prepare GST Analysis, Turnover Reconcilation to be
analysed in formats Annexure 13 to 13E
3.Prepare GP Analysis and check whther there is any
change in ratio during the year compared to previos year. To
be anlaysed in format Annexure 14
Verified by:
ET Member
Name
Date
Engagement Partner
Name
Date
GST ANALYSIS- (Annexure 13 to Annexure 13E)
ANNEXURE
ANALYSIS
PURPOSE
ANNEXURE 13
GSTR 1
It include Outward supply
(B2B,B2C,credit note,ammendment
should be shown, output tax for the
same and HSN wise summary as per
filed GSTR 1
ANNEXURE 13A
GSTR 3B
It include outward supply ,output
tax,Input tax ,tax payable as per filed
GSTR 3B
GSTR 1 VS GSTR 3B
To check the outward supplies and
Output tax stated in GSTR 1 and GSTR
3B are same
ANNEXURE 13B
To check the outward supplies and
Output tax stated in GSTR 1 and Books
are same
ANNEXURE 13C GSTR 3B VS BOOKS
To check the input tax stated in GSTR
3B and Books are same
To check the Tax paid as per books and
GSTR 3B are same
ANNEXURE 13D
ANNEXURE 13E
GSTR 1 VS BOOKS
To check the outward supplies and
Output tax stated in GSTR 1 and Books
are same
TURNOVER RECONCILATION
Reconcilation between turnover as per
Audited Financial Statement and GSTR
1 filed / Annual Return as may be
applicable.
ANNEXURE 13
XYZ LTD
FY 20XX- FY 20YY
GSTR 1 DATA
OUTWARD SUPPLY
B2B Invoices (1)
B2C Invoices (2)
Credit Notes (3)
Month
Invoice Value
Taxable Value
IGST
CGST
SGST
Cess
Invoice
Value
Taxable
Value
IGST
CGST
SGST
Cess
Invoice
Value
Taxable
Value
IGST
CGST
SGST
Cess
FY 20XX- FY 20YY
GSTR 1 DATA
OUTWARD SUPPLY
Nil rated, exempted and non
GST outward supplies (4)
Exempted
NON GST
supplies
Advances received (5)
Invoice
Value
Taxable
Value
IGST
CGST
Adjustment of advances (6)
SGST
Cess
Invoice
Value
Taxable
Value
IGST
CGST
SGST
Total (1 to 6 ) = 7
Cess
Invoice
Value
Taxable
Value
IGST
CGST
SGST
Cess
ANNEXURE 13
XYZ LTD
FY 20XX- FY 20YY
Grand Total as per GSTR 1 (See Calculation No. 7)
Month
Invoice Value
Taxable Value
IGST
CGST
SGST
Cess
CGST
SGST
Cess
HSN wise Summary
Month
Invoice Value
Taxable Value
IGST
Difference between Grand total & HSN wise summary
Month
Invoice Value
Taxable Value
IGST
CGST
SGST
Cess
ANNEURE 13A
XYZ Ltd
FY 20XX -20YY
GSTR 3B
OUTWARD SUPPLY
Outward Taxable Supply (Other than zero rated, nil rated
and exempted)
Outward Taxable Supply (Reverse Charge supply)
Month
Invoice
Value
Taxable Value
IGST CGST
SGST
CESS
Invoice Value
Taxable Value
IGST
CGST
SGST
CESS
Outward
Taxable
Supply
(Zero
rated)
Other
Total Outward Supply
Outward
NonSupplies(Ni
GST
l
Outward
Invoice Taxabl
rated,exem Supplies
IGST CGST SGST CESS
Value e Value
pted)
ANNEURE 13A
XYZ Ltd
FY 20XX -20YY
INWARD SUPPLY
ITC Available (A)
ITC Reversed (B)
Exempt,Nil and Non GST Inward
Supply
Net ITC Available (A) -(B)
Month
IGST
CGST
SGST
IGST
CGST SGST
IGST
CGST
SGST
Exempted and Non GST Inward
Nil rated supply
Supply
GST Payable
Month
IGST
CGST
ANNEURE 13A
XYZ Ltd
FY 20XX -20YY
GST PAYABLE
LATE FEE
INTERSET
SGST
IGST
CGST SGST
IGST
CGST
Challan Details
SGST
IGST
CGST
SGST
Challan No
Challan
Date
MONTH
Invoice
Value
ANNEXURE 13B
XYZ LTD
FY 20XX- 20YY
GSTR 1 Vs GSTR 3B
AS PER GSTR 1
Taxable
IGST
CGST
Value
SGST
Cess
SGST
Cess
SGST
Cess
XYZ LTD
FY 20XX- 20YY
AS PER GSTR 3B
MONTH
Invoice
Value
Taxable
Value
IGST
CGST
XYZ LTD
FY 20XX- 20YY
GSTR 3B Vs 1 (Difference)
MONTH
Invoice
Value
Taxable
Value
IGST
CGST
AS Per GSTR 3B
Month
Month
Total
Taxable
Supply
Total
IGST
Total
CGST
AS Per GSTR 3B
Total
Total Total
IGST
CGST SGST
Total
SGST
Total
Cess
ANNEXURE 13C
XYZ LTD
FY 20XX-20YY
GSTR 3B Vs BOOKS
OUTWARD SUPPLY
AS Per Books
Total
Total Taxabl Total Total Total
Cess
e
IGST CGST SGST
Supply
INWARD SUPPLY
AS Per Books
Total Total Total
Month
IGST CGST SGST
Difference
Total
Cess
Total
CGST
Total
SGST
Total
Cess
Difference
Total Total Total
Month
IGST CGST SGST
Total
Cess
Total
Cess
Difference
Total Total Total
Month
IGST CGST SGST
Total
Cess
Month
Total
IGST
GST PAYABLE
Month
AS Per GSTR 3B
Total
Total Total
IGST
CGST SGST
Total
Cess
AS Per Books
Total Total Total
Month
IGST CGST SGST
Total
Cess
ANNEXURE 13D
XYZ LTD
FY 20XX-20YY
GSTR 1 Vs Books
Outward Supply as per GSTR 1
Month
Total IGST
Total CGST
Total SGST
Total Cess
Outward Supply as per Books
Month
Total IGST
Total CGST
Total SGST
Total Cess
Total SGST
Total Cess
Difference
Month
Total IGST
Total CGST
ANNEXURE 13E
XYZ Ltd
FY 20XX-20YY
Turnover Reconcilation
Sl.no
Particulars
Turnover as per P&L(Including Other
Income) - Audited
Turnover as per GSTR 1/ Annual
Return
CY
PY
XXXX
XXXX
XXXX
XXXX
xxxx
xxxx
Add: Income not taken in GSTR 1/
a. Annual Return
xxxx
xxxx
b. Less: Income of PY ammended
(xxx)
(xxx)
c. Add/Less:- Any other : specify
(xxx)
(xxx)
(ii) Total (a)+(b)
xxxx
xxxx
Difference (i) -(ii)
xxxx
xxxx
(i) Difference
List
Note:- Prepare a note as to why "Income" if any not taken in
GSTR1/ Annual Return and confirm they are not liable to GST
Annexure 14
XXXX
FY 20XX-20YY
(a)
GROSS PROFIT RATIO (Prepare Item Wise)
The Gross Profit ratio indicates the amount of profit that is available to cover
operating and non-operating expenses of the business.
Particulars
Current Year
20XX-20YY
Previous year
PY 20XX-20YY
Sales
Cost of Goods Sold
Gross Profit
Gross Profit in Ratio
Note:- If possible, analyse GP Ratio for the Pys upto 5 years and arrive at an average.
In case of variance, analyse the reasons.
AUDIT CHECKLIST
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PARTICULARS
CHECKLIST
CORPORATE
ENTITIES
NON CORPORATE
ENTITIES
a
a
a
a
a
a
a
a
It includes interest (other than finance company) , dividend,
Net gain on sale of assets, other non-operating incomes
23
OTHER INCOME
1.Whether the company accounted for all the known
incomes accruing during the year?
2.Verify the income with 26 AS/AIS/TIS and Books.To be
anlaysed in format Annexure 16
3.Whether the interest received fron Income Tax
department correctly shown?
4.Check GST Liability of each income
Verified by:
ET Member
Name
Date
Engagement Partner
Name
Date
Annexure 16
XXXX
26AS/AIS/TIS vs TALLY
AS PER 26 AS/AIS/TIS
Name of
Deductor
Note
Transaction
Date
Amount Paid /
Credited(Rs.)
Tax
Deducted(Rs.)
Total Including
TDS
Difference to be analysed
In case there is error or omission, necessary audit entries to be passed.
TAN of
Deductor
TDS
Deposited
(Rs.)
As per Books of Accounts
Status of
Booking
Date of
Booking
Section
Amount
Paid /
Credited
(Rs.)
Tax
Deducted
(Rs.)
DIFFERENCE
Amount Paid
/
Credited(Rs.)
Tax
Deducted
(Rs.)
AUDIT CHECKLIST
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24
PARTICULARS
CHECKLIST
CORPORATE
ENTITIES
NON CORPORATE
ENTITIES
a
a
a
a
a
a
a
a
a
a
a
a
1.Check whether there is any difference in Opening Stock
compared to Previous year closing stock
COST OF MATERIAL
CONSUMED,(PURCHASE OF 2.Check Closing Stock Valuation -AS 2 compliance
STOCK IN TRADE & CHANGES 3.Check Purchase Bills at random
4.Check the Purchases with GSTR 2A.To be anlaysed in
IN INVENTORIES OF FINISHED
format Annexure 15
GOODS,WORK IN PRGRESS
5.In case of Stock inward and Stock outward ensure that
AND STOCK IN TRADE)
the net difference is Zero
6. Quantitative Particulars - Refer Annexure 10
Verified by:
ET Member
Name
Date
Engagement Partner
Name
Date
Annexure 15
XYZ Ltd
FY 20XX-20YY
GSTR 2A Vs BOOKS
Sl.No
Notes
Name of the party
Total
Invoice
Value
As per GSTR 2A
Total
Taxable
IGST
CGST
Value
SGST
Total
Invoice
Value
As per Books
Total
Taxable IGST
CGST
Value
Difference
SGST
Total
Invoice
Value
Total
Taxable
Value
IGST
CGST
SGST
1. Eligibility of ITC claim should be verified
2. Check whether payment towards credit purchases are effected within 180 days they became due. If not, whether ITC has been reversed and reclaimed only in the month of Actual payment
AUDIT CHECKLIST
APPLICABLE TO
SL NO
25
PARTICULARS
CHECKLIST
CORPORATE
ENTITIES
NON CORPORATE
ENTITIES
a
a
a
a
a
a
a
a
a
a
6. Ensure compliance with AS-15 to the extent applicable
a
a
7. Ensure Salaries as per Books and as per PF/ESI records
tally. If not, prepare reconciliation
a
a
It includes salaries & wages, PF & other funds, staff
welfare expenses,etc
1.Check the basis for providing gratuity and whether
Actuarial Valuation is mandatory.
2.Check ESI ,EPF,Professional Tax with challans paid
during the year and with relavant sections. To be anlaysed
in format Annexure 17 to 17A
3.Check the salary register and make Employee wise and
EMPLOYEE BENEFIT EXPENSE Monthly wise salary Analysis.To be anlaysed in format
Annexure 18 to 18A
4.Check TDS Applicability
5.Ensure that the managerial remuneration is provided in
accordance with the provisions of schedule V
Verified by:
ET Member
Name
Date
Engagement Partner
Name
Date
Annexure 17
XXXX
FY 20XX-20YY
ESI Analysis
AS Per Books
Due Date of
Payment
As per Challan
Actual Date
of Payment
Delay, if
any
Difference
Month
Employer Contribution
Employee
Contribution
Challan
Number
Challan
date
Employer
Employee
Challan
Amount
Employer
Contribution
Employee
Contribution
Annexure 17A
XXXX
EPF ANALYSIS
FY 20XX-20YY
As per Challan
As per books
Month
EPF
Employee
EPF
Employer
Administration
charges
Date of
Payment
EPF
Employee
EPF Employer
Administration
Charges
Due Date of
Payment
Actual Date of
Payment
Difference
Delay, if
any
EPF Employee
EPF Employer
Administration
Charges
Annexure 18
XXXX
FY 20XX-20YY
Employee Wise Salary
Sl.no
Branch
EMPLOYEE
APRIL
MAY
JUNE
JULY
AUG
SEP
OCT
NOV
DEC
JAN
FEB
MAR
Total
ANNEXURE 18A
XXX
FY 20XX-20YY
Monthwise Salary
Month
As per
Books
As per salary statement
Difference
AUDIT CHECKLIST
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PARTICULARS
FINANCE COST
CHECKLIST
CORPORATE
ENTITIES
NON CORPORATE
ENTITIES
a
a
a
a
a
a
1. To be classified as :
(a) Interest Expenses
(b) Other Borrowing Costs
2. Check whether the interest expenses are properly
accounted.
3.Check TDS Applicability
4. Check applicability of AS-16 : Borrowing Costs, if any
requiring Capitalisation
Verified by:
ET Member
Name
Date
Engagement Partner
Name
Date
AUDIT CHECKLIST
APPLICABLE TO
SL NO
27
PARTICULARS
DEPRECIATION
/AMORTISATION
CHECKLIST
CORPORATE
ENTITIES
NON CORPORATE
ENTITIES
1.Whether depreciation is provided as per companies Act
2013- Sch II
a
r
2.Whether depreciation is provided as per Income Tax Act
r
a
3.Verify the amortization of intangiable asset in accordance
with AS-26
4.Verify that the leashold land has been amortized over the
period of the lease.
a
a
a
a
Verified by:
ET Member
Name
Date
Engagement Partner
Name
Date
AUDIT CHECKLIST
APPLICABLE TO
SL NO
28
PARTICULARS
OTHER EXPENSES
CHECKLIST
CORPORATE
ENTITIES
NON CORPORATE
ENTITIES
1.Check whether the expense are classified properly.
2.Check TDS Applicability of each expense. To be
analysed in format Annexure 19
3.Check the nature of expense and check whether any
expense need to be capitalised
a
a
a
a
a
a
4. Ensure compliance with "Materiality" as per Schedule III
- in respect of showing amounts separately
a
5. Any item of income or expenditure which exceeds 1% of
the Revenue from Operations or Rs. 1,00,000 whichever is
higher, to be disclosed separately
6. Payments to auditor include
(a) As Auditor
(b) For Taxation matters
(c ) For Company law matters
(d) For Management services
(e) For Other Services
(f) For reimbursement of expenses
7. Corporate Social Responsibility (CSR) expenses, if
applicable, to be disclosed as per CSR Rules
8. Prior period items
9. Provisions made
10. Expenditure, if any, incurred on each of the following
items to be disclosed separately
(a) Consumption of stores and spareparts
(b) Power and Fuel
(c ) Repairs to Buildings
(d) Repairs to Machinery
(e ) Insurance
(f) Rent
(g) Rates, Taxes excluding Income Tax
(h) Miscellaneous Expenses
11. Any exceptional items
12. Any extra ordinary items
13. Deferred Tax
(1) Difference between Taxable Income and Income
computed as per IT
(2) To be classified as
(a) Permanent Difference
(b) Timing Difference
(3) Tax impact on Timing Difference - Annexure 20
Verified by:
ET Member
Name
Date
Engagement Partner
Name
Date
ANNEXURE 19
XXXX
TDS Applicability
FY 20XX-20YY
1
Expense
Head
*
Nature of
Payment
2
3
4
Total amount of
TDS
Nature Payment or receipt
Applicable Section
of
of the nature
or not
Payment specified in column
(3)
Difference, if any has to be shown
5
6
7
8
9
Total amount on
Total amount on
which Tax was
Amount of
Total amount on
which Tax was
Amount of tax
deducted or
tax deducted which tax required
require to be
deducted or
collected At
or collected
to be deducted or
deducted or
collected on (8)
specified rate out of
out of (6)
collected (7)
collected out of (4)
(5)
10
Amount of tax
deducted or collected
not deposited to the
credit of the central
govt out of (6) and
(8)
Annexure 20
Deferred Tax Calculation
FY 202X- 202X
SL No.
Particulars
Amount
1 Book Profit
XXXX
2 Taxable Profit
XXXX
Difference
Amount
XXX
Nature:
A
B
Timing Difference:
Depreciation
as per books
as per income tax
XX
XX
XX
Expenditure disallowed
as per books
as per income tax
XX
XX
XX
Provision for Gratuity
as per books (Provision)
as per income tax (Amount deductible)
XX
XX
XX
Any other
XX
Difference
XX
Total (i)
XX
Permanent Difference:
Donation
Employee Contribution to ESI
Income Tax
Any other
Total (ii)
XX
XX
XX
XX
XX
Total (i+ii)
XX
Total Timing Difference
XX
Deferred Tax on Timing Difference
XX
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PARTICULARS
CHECKLIST
ANALYTICAL PROCEDURES
Ratios are used in analytical procedures at the audit
planning stage and when collecting audit evidence. Few
ratios are given below:
i) Gross Profit ratio = Gross profit/Sales revenue *100 :
See Annexure 14
ii) Net proftit ratio = Net profit/ Total income *100
iii) Return on capital employed = operating profit / capital
employed*100
CORPORATE
ENTITIES
NON CORPORATE
ENTITIES
a
a
a
a
a
a
a
a
a
a
a
a
a
a
iv) Current ratio = Current Assets/ Current Liabilities
v) Quick ratio = Current Asset minus inventory / current
liabilities
vi) Inventory holding period = Inventory / Cost of sales *
365
To be analysed in format Annexure 21
Verified by:
ET Member
Name
Date
Engagement Partner
Name
Date
Annexure 21
(a)
NET PROFIT RATIO
It reveals the remaining profit after all costs of production, administration, and
financing have been deducted from sales, and income taxes recognized
Particulars
Current Year
20XX-20YY
Previous year
PY 20XX-20YY
Total income
Operating & Non Operating Exp
Net Profit
Net Profit in Ratio
(b)
WORKING CAPITAL TURNOVER RATIO
Working capital turnover ratio is a formula that calculates how efficiently a
company uses working capital to generate sales. In this formula, working capital
refers to the operating capital that a company uses in day-to-day operations.
Particulars
Current Year
20XX-20YY
Previous year
PY 20XX-20YY
Current Asset(a)
Current Liabilities(b)
Net Working Capital(a)-(b)
Sales
Working Capital Turnover ratio
-
©
CURRENT RATIO
The current ratio is a liquidity and efficiency ratio that measures a firm's ability to
pay off its short-term liabilities with its current assets
Particulars
Current Year
20XX-20YY
Previous year
PY 20XX-20YY
Current Assets
Current Liabilities
Current ratio
(d)
QUICK RATIO
The quick ratio is an indicator of a company's short-term liquidity position and
measures a company's ability to meet its short-term obligations with its most liquid
assets.
Particulars
Current Year
20XX-20YY
Previous year
PY 20XX-20YY
Cost of goods sold
Current Year
20XX-20YY
Previous year
PY 20XX-20YY
Current Assets (A)
Inventory (B)
Current Liabilities ( C )
Quick Ratio ( A - B)/C
(e)
Opening stock
Add Purchase
Add Direct Expenses
Loading & Unloading Charges
Less Closing Stock
Cost of Goods Sold
-
AUDIT CHECKLIST
AUDIT CHECKLIST
ADDITIONAL REGULATORY INFORMATION :
DISCLOSURE REQUIREMENTS FOR CORPORATE ENTITIES
Sl.No
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
Particulars
Title Deeds of Immovable Property, not held in the name of the company, if any
If there is Revaluation of Assets, whether done by a Registered Valuer
Details of Loans & Advances in the nature of loans granted to promoters, Directors, KMPs or any other related parties, which are repayable on
demand without specifying any terms or period of repayment.
Capital Work in Progress (CWIP)
Intangible Assets under Development
Details of Benami Property held, if any
Wheere the company has borrowings from Banks or Financial Institutions on the basis of security of current assets, then to disclose the figures in
quarterly returns submitted to Bank and the figures as per Books. In case of difference, reasons for the same also to be disclosed.
Wilful Defaulter - Whether declared by Bank. If yes, details
Relationship with struck off companies
Registration/ Satisfaction of charges - with Registrar of Companies
Compliance with number of layers of companies
Disclosure of various ratios
Compliance with approved schemes or arrangements
Utilisation of Borrowed funds and Share Premium
Expenditure / Earnings in Foreign Currency.
Undislosed icnome
Corporate Social Responsibility (CSR)
Details of Virtual Currency
Note: For all the above, Refer Schedule III including General Instructions
AUDIT CHECKLIST
APPLICABLE TO
SL NO
PARTICULARS
CHECKLIST
CORPORATE
ENTITIES
NON CORPORATE
ENTITIES
a
r
a
a
a
a
4.Institute of Chartered Accountants of India www.icai.org
a
a
5.Reserve Bank of India
www.rbi.org.in
a
a
1.Ministry of Corporate Affairs
www.mca.gov.in
2.Income Tax
www.incometax.gov.in
30
IMPORTANT SITES TO BE
REFFERED
3.Goods and Service Tax
www.gst.gov.in
Verified by:
ET Member
Name
Date
Engagement Partner
Name
Date
AUDIT CHECKLIST
APPLICABLE TO
SL NO
31
PARTICULARS
IMPORTANT
PRONOUNCEMENTS OF ICAI
CHECKLIST
CORPORATE
ENTITIES
NON CORPORATE
ENTITIES
a
a
a
a
r
a
a
a
a
a
1.CA Act/Rules/Code of Ethics
2. Accounting Standards (Annexure 3)
3. Standards on Auditing (Annexure 4)
4.Guidance Note (Annexure 4)
5. Compendium of Opinions (Refer Institute Site for
reference)
Verified by:
ET Member
Name
Date
Engagement Partner
Name
Date
AUDIT CHECKLIST
APPLICABLE TO
SL NO
PARTICULARS
CHECKLIST
CORPORATE
ENTITIES
NON CORPORATE
ENTITIES
1.Companies Act 2013/Companies Rule 2014
a
r
2.LLP Act 2008/ LLP Rules 2009
r
a
3.Income Tax Act 1961 /Rules
a
a
4.GST Act 2017/CGST Rules 2017/ SGST Rules 2017
a
a
Normally: (As amended)
32
APPLICABLE LAWS
Verified by:
ET Member
Name
Date
Engagement Partner
Name
Date
AUDIT CHECKLIST
APPLICABLE TO
SL NO
35
PARTICULARS
CHECKLIST
CORPORATE
ENTITIES
1. Ensure that following documents are duly signed and
documented:
a. Audit Report
If CARO Applicable
If Internal Financial Control Applicable
b. Financial Statements
i) Balance Sheet
ii) Profit & Loss A/C
iii) Cash Flow if applicable
POST AUDIT REQUIREMENTS
iv) Schedules and Subschedules to Balance Sheet
iv) Schedules and Subschedules to Profit & Loss
v) Notes & Accounting Policies
vi) Management Representation
2. Close the books of Accounts and verify the closing
balance & file the closed TB in file
NON CORPORATE
ENTITIES
r
a
a
3.Audit File Documentation of all the verification done
should be completed within 30 days from the date of
signing the audit report.
Verified by:
ET Member
Name
Date
Engagement Partner
Name
Date