Ledger scruitny - backbone of statutory audit - Audit

Ledger scruitny - backbone of statutory audit

Page no : 2

CS,CA F,Numrologi TusharSampat (CS CA F Numerologist Astrologer Graphologist Face reader Vastu Expert) (85930 Points)
Replied 31 August 2012

Originally posted by : Rahul Bansal
	Bahut Acha Thread Hai...............Very Informative............Tnx. Dude:)

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Aarush (Delhi) (1566 Points)
Replied 31 August 2012

thanks for sharing..

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Nitesh (CA Student ) (252 Points)
Replied 31 August 2012

It's good.....and it will be very helpfull.............Thanks...

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Namrata (Spirutial Being) (1841 Points)
Replied 31 August 2012

Very informative

thanks for sharing

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Poonam (CA Final Student) (218 Points)
Replied 31 August 2012

Nice , Informative , thanx for sharing , keep posting

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BALASUBRAMANYA B N (CCI STUDENT....) (44679 Points)
Replied 31 August 2012

Very useful and veyr good sharing bro...Keep sharing..

Rgs

Balu

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SANYAM ARORA (“It's hard to beat a person who never gives up.”) (20173 Points)
Replied 31 August 2012

Originally posted by : Adit Sharda

Thanks for a start, but I feel alot of things are missing here..

Dividends: Whether or not CDT has been deducted and paid after declaration or payment of interim/final dividend. Whether the same have been paid out of sufficient profits during the year or accumulated profits. Also, if there's an external borrowing, whether the terms of the borrowing permit distribution of such profits.

Loans: Whether or not a charge has been created on assets if the loan is secured and whether the same reflects in the Company Charge data in MCA.

Whether any collateral or corporate/director guarantees have been given for the purpose of the same. The same would need to be disclosed as per Revised Schedule VI.

Fixed Assets: Whether capital expenses have been charged to heads like Repair and maintenance, Computer AMC etc. Whether Software needs to be capitalised seperately. Whether the cost of interest needs to be capitalised as per AS 16 - Borrowing Costs.

Fixed Deposits: Whether accrued interest but not due has been provided for as income in the books of accounts. Whether the bank confirmation received from banks contains the deposit amounts as disclosed by the company. Whether any deposits are pledged for cash credits, guarantees or with statutory authorities.

Creditors: If the payment is made to an enterprise registered with the MSME Act, whether payments are made as required under the same. If not, whether statutory interest is provided for in the books of accouns as per Section 16 and the disclosures as per AS 22 have been made.

Also, if PDCs have been issued, the same shouldn't be reduced from Creditor and bank balances as on 31 March. Whether TDS has been adequately deducted under the right sections and deposited. Whether payments over 20,000 have been made by account payee cheques.

Bank & Cash: Cash certificate as on 31 March has been obtained from the Management. Also, physical cash verification to maintain authenticity of control over Cash. Whether the Bank reconciliation contains any stale cheques which need to be reversed.

Similar controls and audit checks need to be performed over other statutory dues, borrowings, inventory, provisions and valuations.

It would be appreciated if further additions are made to this thread so we can have an exhaustive checklist by the end of it. :)

Mr Adit I agree to all the above points stated by you. But as i have written in the Article it is for Beginers.

Still i appreciate your valuable suggestion & will add your points shortly.

Thanks & Regards

Sanyam Arora