Audit in P&L
Sohail Ali (18 Points)
26 June 2018
What an Auditor will audit in P&L account. and what we should be careful regarding cash payment and reverse charge
1 Replies
Himal
(Executive)
(52 Points)
Replied 26 June 2018
Generally while auditing cash balance following needs to be checked throughly:
- Physical Verification of Cash
- Insurance adequacy of cash in hand, cash in transit & Cash in safe.
- Any single cash payment above Rs. 35,000/- in case of payments to transporter and Rs. 20,000/- in other cases
For reverse charge & other taxes you may check the following :
- Review of procedures implemented by the company to ensure that proper liability of tax is recorded in the books as and when becomes due.
- Ensure the timely deposition of the same and also check if any undisputed amount has not been deposited and the recording of the reason for the same.
- Ensure the company is generally regular in deposition of tax and if any undisputed amount has not been deposited since six moths it became due in view of reporting under CARO.
- Ensure the company has filled proper return of the turnover in accordance with the laws.
- Reconciliation of the return as filled with the authorities with the total sales.
- Ensure that the company has implemented the system for the correct availment of the input.
- Review the assessment (if any) made during the year and also the reservation, remarks made, any demand raised (if any) and the ground thereof.
- Procedures as to the collection of relevant statutory forms.
Hope this helps.
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