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required for audit

SUMIT R. DUBEY (ACCOUNT EXECUTIVE) (46 Points)

02 September 2018

what is required for audit and what does check in audit of company and firm.

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2 Replies

Pranjali (intern) (2216 Points)
Replied 05 September 2018

Basically, your books of accounts. An auditor needs to make sure that your accounts and the financial performance of the company has been presented in a fair and accurate manner. There's absolutely no limits to what an auditor might ask you to provide. At any given time, they can ask for specific accounts, books prepared by your internal auditor. They might alsi visit your inventory etc. Basically, you might be required to explain your business in and out and until, they're convinced that there's no window dressing and the performance of the company is exactly as is represented in the books. You can be asked to explain whatever he asks you.

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suresh.m (ca-ipcc) (4 Points)
Replied 06 September 2018

first of all check the purchases and sales with VAT returns and GST returns
reconciliation to be done based on returns with the tally books
identify mistakes and correct the sales with the returns if returns shows high
identify the actual balance of duties and taxes as per return matching with the tally data
check the bank balances with tally data balances
compare the expenses of current year with last years, if finance year expenses more ask the reason for increase
conform the creditors balances with account statements obtained