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Query

Sneha (Utmani) Tilwani (Audit/acounts/taxation head) (93 Points)

30 June 2011

hello everyone! i need to know procedure of Audit of firm and company engaged in construction business.? Whicht points i need to check? kindly help!!!!

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CS,CA F,Numrologi TusharSampat (CS CA F Numerologist Astrologer Graphologist Face reader Vastu Expert) (85930 Points)
Replied 30 June 2011

Majority of you work will cover AS -7.

CHECK ALL CONTRACT MADE BETWEEN THE PARTIES & PAYMENTS MADE BETWEN THEM.

Check about the provsion made for WORKS CONTRACT amount & other related clauses in contract.

Check whther all appraoval which are requried to be taken from local and govt authorities are actually taken on paper.

Take all the photocopies of all imp documents which u come across.

Check all the expenses made & reciepts especially in cash.

If any loan is taken check the governing documents & see wther there is any violation done or not.

This are few imp points that need to be checked in depth ther are other points also. Wait for other members to comment on it.

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CA ADITYA SHARMA (CA IN PRACTICE ) (16719 Points)
Replied 30 June 2011

good explanation by tushar

CA Vinit Shah (Proprietor) (44 Points)
Replied 30 June 2011

Tushar has given you breif explanation, additionally you should have to consider taxation part also.. like service tax applicability, payment and return filled on due date.

and you should take care about revenue recognization method.

CS,CA F,Numrologi TusharSampat (CS CA F Numerologist Astrologer Graphologist Face reader Vastu Expert) (85930 Points)
Replied 01 July 2011

Originally posted by : CA Vinit Shah
	Tushar has given you breif explanation, additionally you should have to consider taxation part also.. like service tax applicability, payment and return filled on due date. and you should take care about revenue recognization method.