what is the procedure for the First time Audit of new established Firm.. plz reply
annasrikanth (student) (202 Points)
27 August 2009what is the procedure for the First time Audit of new established Firm.. plz reply
llllVICTORllll
(Internal Auditor)
(511 Points)
Replied 27 August 2009
if i am in your situation, my procedure will be same as audit of any common firm,
1. understand the business of firm
2. take copy of all the statutory registrations and renewals done
3. usual vouching
4. check for the compliance of all the statutory requirements
5. see if any of the regiistration to be done is PENIDNG FROM THEIR SIDE
6. how preliminary expenses are taken care off
7. asset purchased(special care to be taken in case of machinery and rawmaterial purchased before VAT registration)
i think thats it, i am not able to recall anyother points to be taken care off
santosh patro
(Audit article)
(51 Points)
Replied 28 August 2009
What Meghdoot send is absolutely correct . But to certain extent it varies from client to client depending on its nature of Business.
Batul
(Article assistant)
(207 Points)
Replied 27 October 2009
The audit is to be done the same way like that of other firms but apart from routine audits the following areas should be taken into consideration:-
1)Take the PAn card copy and retain the xerox copy with you
2)If its a partnership firm ask for the partnership deed
3)Confirm the nature of business
4)TDS wont be applicable since its the first year of audit
5)Ask for bills for additions to fixed assets
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