Audit procedure-Required
This query is : Resolved
05 February 2010
Kindly provide information requested as below
What is the detailed audit procedure for verification of the following?
1. Letter of Credit
2. Annual Maintenance Contracts (AMCs)
3. Physical verification of Fixed Asset
What is the detailed audit procedure for verification of the following?
1. Letter of Credit
2. Annual Maintenance Contracts (AMCs)
3. Physical verification of Fixed Asset
07 February 2010
Audit procedure for physical verification of Fixed Assets
- Obtain the list of fixed assets lying in the organisation according to management. In that list, name of the fixed assets with model no. to identify or some times some identification mark, quantity and exact location to identify in which department it is lying.
- Take this list for physical verification, if found short specify next to it and if found in addition den also.
- Get that signed by the person with whom you are physically verifying and also mention the date and try to find the reason for it.
- Try to make out the financial effect from the assets not found during the physical verification.
- Report to management in case of internal audit and in case of statutory audit, book in embezzlement.
- Obtain the list of fixed assets lying in the organisation according to management. In that list, name of the fixed assets with model no. to identify or some times some identification mark, quantity and exact location to identify in which department it is lying.
- Take this list for physical verification, if found short specify next to it and if found in addition den also.
- Get that signed by the person with whom you are physically verifying and also mention the date and try to find the reason for it.
- Try to make out the financial effect from the assets not found during the physical verification.
- Report to management in case of internal audit and in case of statutory audit, book in embezzlement.
07 February 2010
Audit procedure for AMC
- First of all, obtain the list of contracts (AMC) and get signed by the management for your working papers so that in future management will not say that you have missed that AMC
- On test check basis, select some AMC and obtain the copy of contract.
- Carefully study the clauses of AMC and check whether the expenses booked according to clauses of AMC.
- Check whether the TDS @ 2% as applicable in case of contractors if PAN no. is obtained or 20% in case of the specified contractor does not provide the PAN no has been deducted or not??
- Is the expenditure booked in addition to amount specified in contract?? If yes, obtain the revised copy of contract otherwise report to management
- Deposit of TDS deducted on it
- Bifurcation of amount into the expenditure to be booked and prepaid expenese if the period specified in the contract exceed the year ended.
- Booking of AMC in accurate head i.e. have to see according to expenditure
- First of all, obtain the list of contracts (AMC) and get signed by the management for your working papers so that in future management will not say that you have missed that AMC
- On test check basis, select some AMC and obtain the copy of contract.
- Carefully study the clauses of AMC and check whether the expenses booked according to clauses of AMC.
- Check whether the TDS @ 2% as applicable in case of contractors if PAN no. is obtained or 20% in case of the specified contractor does not provide the PAN no has been deducted or not??
- Is the expenditure booked in addition to amount specified in contract?? If yes, obtain the revised copy of contract otherwise report to management
- Deposit of TDS deducted on it
- Bifurcation of amount into the expenditure to be booked and prepaid expenese if the period specified in the contract exceed the year ended.
- Booking of AMC in accurate head i.e. have to see according to expenditure
09 February 2010
Thanks a lot Ms. Deepika. Have you got any information on audit procedure of
1. BAnk Guarantees
2. Letter of Credit
1. BAnk Guarantees
2. Letter of Credit
12 February 2010
Audit procedure of BG
- Obtain the list of BG for the audit period covered from bank.
-Gernerally BG are of two types
Performance BG
Other BG
- Obtain the guidelines and policy of bank to charge how much commission to be charged and how much amount to be kept as security.
- Select few cases on test check basis and verify the commission charged and security kept by the banks
- If not proper, report to mangement
- BG invoked
Obtain the list of BG invoked
Verify with policy what steps are taken by the bank to realise the sum of BG.
- Obtain the list of BG for the audit period covered from bank.
-Gernerally BG are of two types
Performance BG
Other BG
- Obtain the guidelines and policy of bank to charge how much commission to be charged and how much amount to be kept as security.
- Select few cases on test check basis and verify the commission charged and security kept by the banks
- If not proper, report to mangement
- BG invoked
Obtain the list of BG invoked
Verify with policy what steps are taken by the bank to realise the sum of BG.
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