VAT AUDIT
This query is : Resolved
30 October 2010
sir,
i need to a short notes in the case of vat audit.
i need to a short notes in the case of vat audit.
03 November 2010
Through interviews obtain understanding of the process applied in accounting for VAT. following:
1. Clear guidance is available to all relevant staff processing accounts payable.
2. VAT returns have been completed and submitted timely.
3. Regular independent checking and recon. of tax summaries and tax analyses back to total tax values processed through source systems.
4. Review the recon. performed when accounting for the input and output VAT.
and verify the following:
5.1. Sales order processing system automatically generates correct tax values by reference to the particular customer or type of goods or service.
5.2. VAT correctly calculated based on the rate applicable.
6. Select a sample of accounts payable and verify the ff:
6.1. Payment was based on an original invoice clearly marked ‘Invoice’.
6.2. The supplier is registered for VAT i.e. VAT Registration Number on the invoice.
6.3. The goods/services qualify as taxable supply.
6.4. VAT is correctly calculated.
6.5. Invoices supporting expenditure all checked to ensure that they are in a valid format and that company is reclaiming input tax.
7. Computer system validates mathematical integrity of VAT numbers.
8. Download the customer master file and investigate whether all customers are set up for VAT and for the correct rate as per country.
9. Perform system integrity checks on vat indicators on the system menus.
10. Audit acquisition and disposal of capital assets and /or improvements transactions processed during the period under review and check the vat calculations for accuracy.
1. Clear guidance is available to all relevant staff processing accounts payable.
2. VAT returns have been completed and submitted timely.
3. Regular independent checking and recon. of tax summaries and tax analyses back to total tax values processed through source systems.
4. Review the recon. performed when accounting for the input and output VAT.
and verify the following:
5.1. Sales order processing system automatically generates correct tax values by reference to the particular customer or type of goods or service.
5.2. VAT correctly calculated based on the rate applicable.
6. Select a sample of accounts payable and verify the ff:
6.1. Payment was based on an original invoice clearly marked ‘Invoice’.
6.2. The supplier is registered for VAT i.e. VAT Registration Number on the invoice.
6.3. The goods/services qualify as taxable supply.
6.4. VAT is correctly calculated.
6.5. Invoices supporting expenditure all checked to ensure that they are in a valid format and that company is reclaiming input tax.
7. Computer system validates mathematical integrity of VAT numbers.
8. Download the customer master file and investigate whether all customers are set up for VAT and for the correct rate as per country.
9. Perform system integrity checks on vat indicators on the system menus.
10. Audit acquisition and disposal of capital assets and /or improvements transactions processed during the period under review and check the vat calculations for accuracy.
You need to be the querist or approved CAclub expert to take part in this query .
Click here to login now
Click here to login now
Similar Resolved Queries
Unanswered Queries
- Where to show the RCM on Rent paid to unregistered landlord
- Is Aadhar PAN linking required for opening bank account?
- Applicability
- CPC Processing IT Return for AY 2023-24 without recognizing the Taxation Option under New Regime
- Offsetting interest income against derivative trading losses
- RCM - commercial rent paid to URP under GST
- TDS NUMBER SURRENDER
- Legal heir raised refund , but refund issued to the closed account of deceased.
- Gst Sales of FY 2023-24
- GSTR-3B - Do I file nil when there is no sale but I've bought raw materials
- Whether still royalty
- 20% OF DEMAND PAYMENT IN APPEAL
- Issue of gst e invoice
- Interchangeable words in accounts
- Adjusted profit/Loss in the case of LLP and Pvt. Ltd.company
- How to adjusted advances given or receipt
- Foreign vendor without PAN unable to to register due to non receipt of OTP on foreign number ?
- 133(6) DIN INVALID format error - ->WHERE TO REPLY 133(6) notice?
- Query for dubts
- Regarding Resignation by Auditor from Pvt. Ltd.
Trending Online Classes
-
Excel Mastery Program
CA Rishabh Pugalia
CAclubindia
