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44AB Cases

**KK** (B.Com. MBA. Pursuing CA & CS) (255 Points)

30 July 2010

Just share your experience..

If you are auditing 44Ab case , what are all the aspects you will verify in common right from auditing accounts to e-filing the case.

Especially how will you deal with Scrutiny norms? What are aspects you will verify for covering scrutiny norms?

Reply guys which will be helpful for many articleship students..

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4 Replies

Harpreet (* * * * * *) (1670 Points)
Replied 30 July 2010

Audit Process / Procedure / Checklist

Name of the Auditee:-

Year Ended: 31^st March,

Sr. No.	Areas	Period of checking	Extent of checking	Checked by		Date of checking	Page no. / Ref. of working page if any
Sr. No.	Areas	Period of checking	Extent of checking	Name	Sign.	Date of checking	Page no. / Ref. of working page if any
1.	Appointment Letter	Letter Date:		Received Date:
2.	NOC Letter	Letter Date:		Sent Date:
3.	Acceptance Letter	Letter Date:		Sent Date:
4.	Inventory of Books and Files received
5.	Prepare brief note on nature of business.
6.	Initial requirements Letter
7.	Get Trial Balance or P & L and Balance Sheet
8.	Get Complete Stock Quantity Tally / Details and its Valuation
9.	Get copy of Form 108 filed with Sales Tax / VAT Authority
10.	Stock statement submitted to Bank, if any, against C. C. etc.
11.	Critically analyze / compare Balance Sheet, P & L with previous year figures including ratios and all details required for audit
12.	Note Down Critical Areas and Requirements, draft a letter and issue letter of requirements to the client.
13.	Decide extent of checking
14.	Applicability of Accounting Standards						Use Separate template / sheet
15.	Opening Balance Checking
16.	Closing Balance Checking
17.	Cash Vouching (including Petty Cash)
18.	Bank Vouching
19.	Journal Vouching
20.	Purchase Vouching - Imported Purchase - Indigenous Purchase
21.	Sales Vouching - Export Sales - Local Credit Sales - Local Cash Sales
23.	Credit Notes - Raised by Auditee - Received by Auditee
24.	Debit Notes - Raised by Auditee - Received by Auditee
25.	Ledger Scrutiny & Closing Balance
26.	Qty. Records and Reconciliation
27.	Verification of Excise, Sales Tax, Octroi etc.
28.	Check FBT Return and correctness
29.	If manual books – Posting if specifically instructed
30.	Check Bank Reconciliations
31.	Whether TDS Deducted as per requirement of Law and paid? Check TDS Returns and challans also.
32.	Reconciliation of Accounts of sister concerns/Associates or Personal Books of wherever maintained
33.	Cut off Procedure and provisions of - Telephones - Wages & Salaries - Electricity & Motive Powers - Professional Fees - Sales Tax - Depreciation - Income Tax - Purchases - Job work/Labour Bills - Leave Salary - Interest - Bonus - P. F. - E.S.I. - Excise - Custom Duty Property Tax
34.	If Partnership Firm - Checking of Interest to Partners - Checking of Remuneration to Partners As per Partnership Deed
35.	Get Management Representation Letter
36.	Preparation of Tax Audit Reports
37.	Prepare Income-tax Return
38.	Get Partner’s Approval
39.	Get Auditee’s’Signature
40.	Signed by Partner (Name and Date)
41.	Bill Raised Details	Bill Date:		Bill No.		Amount:-