steps of audit

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SHANTANU SHARMA (Querist)
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18 February 2009 hello everybody,
i want to ask what are the genuine steps of audit, whether we should start with scrutiny or take it as a last part etc.

CA. B.SRINIVASULU

CA. B.SRINIVASULU (Expert)
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20 February 2009 Step 1 : Verify opening balances

Step 2 : Verify vouchers sales, purchases, expenses.

Step 3 : Scrutise the big transanctions

Step 4 : TDS payaments and ought to have deducted.

Step 5 : Returns filed eg. vat, pf, tds, etc.

Step 6 : Extract the trial balance.

Step 7 : Prepare p&l and balnce sheet.

Step 8 : Scrutinise p&l with ratios of sales, gp, np , expenses.

Step 9 : Balance sheet - fixed assets, loans has to be scrutined

Step 10: Confirmation balances for debtors and creditors.