AUDIT PROGRAMME

Name of ConcernAudit for the year ended Assessment yearPersons to whom the audit is assignedName of the persons involved in audit

S.NoParticulars Remarks Verified by1 Verification of Opening Balances with Last

year audited Balance Sheet

a. Carry one copy of last audited Balance Sheetb. Take Opening Trial Balance duly Certified by

Client for opening balance verificationc. If any deviation, Note the same and inform the

client to correct it and take print out of the correct Opening Trial Balance

AUDIT OF BALANCE SHEET ITEMSQueries Findings

2 Share Capital & Reserves

a. Is certificate obtained that the balances of shareregister agree with the issued share capital as perBalance-Sheet ?

b. Is distinction made for shares subscribed in cash or for consideration other than cash ?

c. Is distinction made for revenue reserves and capitalreserves ?

d. Is there any default by directors in payment of call orapplication money ?

e. In case of allotment, whether proper return of theallotment has been filed with ROC or not ?

f. Check the minutes books to see the relevant decisionaffecting share capital and Reserve & Surplus ?

Verified by3 Verification of Secrued Loans

Particular Book Balance As per statement Remarksa. Obtain Secrued Loans Balances as per Booksb. Obtain duly certified Secured Loans Statements from

the management c. If any deviation, obtain Reconcilation Statementsd. Check whether any payment has been made by

director from his personal account . Why?e. Check whether Principal and interest is properly

segregated and accounted or not ?

Verified by

4 Verification of Unsecrued Loans Particular Book Balance Bal. as per Confirmation st. Remarks

a. Obtain Secrued Loans Balances as per Booksb. Obtain duly certified Secured Loans Statements from

the management c. If any deviation, obtain Reconcilation Statementsd. Check whether any payment has been made by

director from his personal account . Why?e. Check whether any loan in excess of Rs. 20000 has

been taken in Cash. - (Annexure-1) Annexure-1f. Check whether any repayment of loan in excess of 269SS :- Loan taken above Rs 20,000

Rs. 20000 has been made in Cash. - (Annexure-2) Particular whether suqarred Max.O/s Accepted during whether taken up or not the year in cash or not

Annexure-2 269T :- Repayment of loan above Rs 20,000Particulars whether suqarred Max.O/s Repayment during whether taken up or not the year in cash or not

Verified by

5 Verification of Duties and Taxes & Expenses Payable Annexure -3

a. Verify the Employee share of Provident Fund paid/ Month Amount Due Date Date of Cheque Challan Datepayable with the challans and also verified whether the same are deposited with concerned authoritieswith in prescribed time limit or not. -(Annexure-3)

b. Verify the Employee share of ESI paid/payable with

Audit of Current Liabilities & Provisions

Employees Contribution to PF Wage & Salaries

the challans and also verified whether the same aredeposited with concerned authorities with in the prescribed time limit or not. -(Annexure-4)

C. Check whether Service Tax, Sales Tax,TDS, VAT, Bonusis paid on time or not. In case of payment after end ofF/y but before the due date of filling of ROI verify the challans. (Refer sec. 43B) - (Annexure-5) Annexure -4

d. Check TDS compliances, whether TDS is properly Month Amount Due Date Date of Cheque Challan Datededucted or not, whether timely deposited or not,whether the rate on which TDS are deducted are Proper or not. Ensure the Overall TDS verification from TDS Returns. (Refer sec. - 40(a)(i), 40(a)(ia)….)

e. Check Service Tax Compliances, whether Service Taxis properly deducted or not,whether timely depositedor not. Ensure the Overall Service Tax verification from Service Tax Returns.

f. Check whether provision for Income Tax for the year has been made or not ? Verify the Payment of Advance Tax, Self Assessment Tax with the relevant Annexure-5challans. Details of Payment of Expenses covered u/s-43(B)

Before the Due Date of ROI u/s-139(1)g. Check whether provision for the VAT Payable, Service Particulars Amount Payable Amount Paid Date of Payment

Tax Payable, wealth tax payable has been made ornot, if required.

Verfiy the Porvision for

h. Power & Electricity for the Last month of the F/y.

i. Cellelur & Telephone for the Last month of the F/y.

j. Salary & Wages or other payments due to the employees for the last month of the F/y

k. Porvision for Gratuity, Leave Encashment etc., whatis the Basis of Estimation - Is it Based on Actuarial valauation?

Verified byQueries Findings

6 Sundry Creditors

a. Check whether credior are paid for there currentbill and Previous years bills are outstanding ?Check whether the payments are made on bill-wiseor on account wise ?

b. In case of payment to Foreign Supplier, compliance of

Employees Contribution to ESI Wage & Salaries

AS-11 (The effect of Changes in Foreign ExchangeRates) i.e the difference should be recorded asForeign Exchange Fluctuation A/c.

c. In case of any doubt, obtain the confirmation from thethird party i.e from the Creditors

d. Check the internal control procedure for the paymentof the creditors. Is it satisfactory or not ?

Verify byQueries Findings

7 Fixed Assets

a. Phisically verification of the fixed assets.b. Verification of bills for the additions during the year.c. Verification of Deprication charged. In case of

Company whether the rate of deprecation is as percompanies act or not ? Deprication Chart

d. Verify that the expenses upto the installation of fixed assets is captialised or not ? Rate Value Rate Value

e. In case of Import, value of fixed assets and the exchange difference should be recorded as perAS-11.

f. Verify the legal ownership of the assets with the ownership title documents.

g. Verify that no depreciation has been claimed onthe portion on which CENVAT Credit or VAT Credit hasbeen taken

h. Verify minute books,resolution etc. to check whetherthere is proper authorisation for purchase and sale of plant & machinery.

i Check Compliance of AS-10 (Accounting for Fixed Assets) for valuation of Fixed Assets

Verified by

8 Verfication of Bank Balances Particular Book Balance As per statement Remarks

a. Obtain Bank Balances as per accounting recordsb. Obtain duly certified Bank Statements from the

managementc. If any deviation, obtain Reconcilation Statementsd. Check whether the management reconciled the

balances on monthly basis or not ?e. Are there any cheque is pending for clearance for

more than 6 month in reconcilation statement ?

Verified byQueries Findings

Particulars As per Companies Act As per Income Tax Act

Audit of Current Assets, Loans & Advances

9 Vouching & Verification of Cash Book

a. If Vouching is done on test basis, mention thebasis of samples taken

b. Was Cash Balance negative at any time during the year ?

c. Is Revenue Stamp affixed on the payments exceedingRs. 5000. ?

d. Check Internal Control on Cash handling, accountingand management.

e. Whether any Cash Payment was made for expensesin excess of 20000 and 35000 in case of transportation

f. Does Cash Book include any expenses of personalnature ?

g. Are all cash vouchers are authorised ?h. Obtain Management Representation Letter for the

verification of Cash Balance as on end of F/Y.

Verified byQuries Findings

10 Investments

a. Verify the existence of Investment along with theownership document and take the copy of the ownership doucument.

b. Check the nature of the investment whether it is short term or long,and also check the compliance ofAS-13 (Accounting for Investments) for the valuationof Investments.

c. whether the value of investment is correctly enteredor not ?

d. Check Rate of Interest, amount of interest receivedamount of interest recorded in books, nature of intt.(monthly,quarterly, half yearly or yearly). In case TDS has been deducted on interest ensure thesame with 26 AS statement of CBDT and also obtainthe TDS certificate.

Verified byQuries Findings

11 Sundry Debtors

a. Review the system of fixation and monitering thecredit limit policy of the organisation.

b. In case of foreign debtor ensure the compliance of AS-11, the exchange difference should be recordedas 'Foreign exchange fluctuation A/c'.

c. Prepare Debtors Age-wise Statement for a period of Details of Age-Wise Debtors as on ……………………..

more than 6 month and for 6 months or less Name of Party Invoice no. Invoice Date more than 6 months 6 months or lessd. Check basis of provison for bed-debts however same

is disallowed under Income Tax Act.e. Check the basis of discount provide to Debtors.

Verified byQuries Findings

12 Valuation of Closing Stock

a. Phiscally verify the quantitative details of stock alongwith the Certified Quantitative detail provided by themanagement.

b. Ensure the compliance of AS-2 i.e (Valuation of Inventories)

C. In manufacturing concern ,enusre the compliance ofCosting Standards to determine the correctness of the stock i.e the apportionment of Overheads is proper or not.

d. Ensure the valuation basis is proper in case of partiallyprocessed goods.

e.

Verified by

Queries Findings12 Vouching of Sales/Revenue

a. If Vouching is done on test basis, mention thebasis of samples taken

b. Vouching with Sale Invoicesc. Verification of few Bills in-depthd. Whether Value, Quantity, Bill no. , VAT and/or Excise

on sales, Party Name are properly accounted ?

Audit of Profit & Loss Items

e. Are Sales related to the year under audit?f. Are Sales reconciled with tax returns submitted

with Sales tax/VAT/Excise authorties ? Prepare Sale Summary for the audited period

g. Is original copy of cancelled bills with the concerns ?h. In case of Export, verify Bill of Entry and check the

exchange accounting as per AS-11.i. Obtain confirmation from Debtor, if there is any

doubt in case of credit sale.

Verified byQueries Findings

13 Vouching & Verification of Purchases

a. If Vouching is done on test basis, mention thebasis of samples taken

b. Vouching with Purchase Invoicesc. Verification of few Bills in-depthd. Whether Value, Quantity, Bill no. , VAT and/or Excise

on purchase, Party Name are properly accounted ?e. Are purchase related to the year under audit?f. Are purchases reconciled with tax returns submitted

with Sales tax/VAT/Excise authorties ?g. In case of Import, verify Bill of Entry,Coustom doc.

and check the exchange accounting as per AS-11.h. Obtain confirmation from Creditor, if there is any

doubt in case of credit purchasei. Are purchase entered under the appropriate head

i.e raw material, consumable stores etc.k. Check the Internal Control Procedure for purchase

order, procurment, accounting and payment for purchases.

l. Verify the various VAT Forms like C-Form,H-Formand others, wherever required

Verified byQueries Findings

14 Vouching of Salary/Wage

a. If Vouching is done on test basis, mention thebasis of samples taken

b. Checking that all wages and salaries sheet and pay-ment vouchers has been properly authorised.

c. Verify the PF, ESI and other retirement benefits paid/payable with the challans and also verified whether the same are deposited with concernedauthorities with in the prescribed time limit or not.

d. Verify whether the Bonus is paid in lieu of share of profit in the concern. Obtain Bonus paid certificate &trace the payment enteries in the Cash/Bank Book.

e. Verify the appointment letter, resolutions (in case of directors ) for appropriatness of payment of salary.

f. Check is there any liability to Deduct TDS ? If YES,then check whether the TDS is properly Deducted & Deposited.

Verified by

Queries Findings15 Journal & Miscellaneous

a. If Vouching is done on test basis, mention thebasis of samples taken

b. Ensure proper distinction between revenue and capital nature items

c. Are entries made under proper head of accounts.

Verified by16

AUDIT PROGRAMME FOR ……… PERIODSTATUS REMARKS

1 Deferred Tax Assets and Liabilty reversal For IT and Company Depreciation Section 43A adjustments For Carried forward Loss For deferred expenses Disallownces under section 40(a)(ia),

2 Reconcilation of * VAT With Return and reconcile with Turnover*Excise With ER-1 and reconcile with Turnover*CST -CST Return and reconcile with Turnove*TCS -Reconcil with Scrap Sales Ledger and Apply TCS %

3 TDS/TCS Deduction and payment analysis* Quarterly Return submitted by the compay for E-TDS* Analysis of payment with ledger and challan

4 Disallowable Expenses Analysis

* Donation*TDS Interest -*Fine and penalty*Cash payment Exeeding Rs20000 *Sec 40A(2) Excess payment than Normal payments*Pooja Exp*Under section 40(a) (Non Deduction of TDS)*Sec 40(ia)a and nature of TDS disallowances*Section 43B- Bonus,gratutity ,

Delay in payment of employee contribution in conection with PF, ESI

5 Other Details for 3CD

**List of Payment under section 40A(2)(b).(Related Party Payments)**Payment of gratuity not allowable under section 40A(7)**Priliminary Expens under Section 35D

6 115JB Calculation Calculation for unabsorbed dep and business lossMake correct provision for 115JBConsider the Credit of privious year then make provision

Section 43B Payments ie disallowed earlier year and now allowed in memo

* Reconcile the amount of TDS with Profit and loss account for finding out Tds short deduction and non deduction.

* Non deduction and short deduction gross expenses to consider for disallowance under section 40(a) (i), 40(ia) etc

** Preparation of Form 29B for MAT calculation ( if MAT applicable )

7 ANNEXURE FOR 3CD** Excise duty ** VAT Annexure** ESI and PF Annexure** TDS and TCS Annexure** IT Depreciation** Stock Qty Annexure** Set off and Carried forward Annexure** Calculation of Ratio** Annexure I Part A,B

8 OTHER REQUIREMENTS

** Fund Flow Statement** Details of Contingent Liabilities

**List of cases which are under Litigation**Report of Internal Auditors

9 Secretarial RequirementsIncrease in Share CapitalApppionment / Resignation of Director detailsCo Audit DetailsAGM/ EGM DetailsResoluation CopiesCharge Creation DetailsDirectors Remuneration details under sec 217(2A)

10 Document Evidence for ** Authorised capital** Paid up Capital

** Present directors/ verification and Management certificates** Change of directors**Present share holders/ changes and verification with members register and Management certificate.

11 UNDER COMPANIES ACT 1956PARTICULARS OF REGISTERS SECTION

297 & 299

301

** Cash flow Statements ( if Company turnover >50 crore ) and Level I Enterprises

** List of Assessment Pending with IT Department and other Departments

Register of contracts, with companies and firms, in which directors are interested giving details

Register of contracts with companies and firms in which directors are interested directly or indirectly

Register of directors, managing directors, managers and secretary 303

Register of directors shareholding 307356 & 357

Register of loans to companies ‘under the same management’ 370372A (5) & (6)

Register of appointment of directors or an associate as a selling agent outside India of goods produced by the company, and for supply of or rendering of service

Register of loans made, guarantees given or securities provided to companies and investments in shares and debentures of other companies