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Revenue audit

Tanvi (Student) (224 Points)

28 July 2014

Dear All

I want to know that is Revenue Audit compulsary in India and what are the other provisions regarding it?

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3 Replies

Hitesh Khanna (Accounting & Finance Taxation Company Law Audit ) (839 Points)
Replied 28 July 2014

Well I can give you a brief idea which is going to help you a Lot.

1. In Revenue Audit we Audit the Income Side of the Balance Sheet, Vouch the Sources of Income.

2. Say for Example in a Bank during its Revenue Audit one has to check whether even the petty source of revenue has been recognised.- Say Bank Charges on Excess Debit entries in Account, Bank Charges for Replacing Lost Pass Book, Ch Return Charges, Ch Book Issuing CHarges, Cheque Return Charges Etc.

I guess I have comfortably given you an idea to work upon.

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Tanvi (Student) (224 Points)
Replied 30 July 2014

Thanks a Lot..it helped a lot. Also I wanted to know that Is Revenue Audit compulsary, and if yes then what is the criteria for doing revenue audit, means when it becomes compulsary for a Company to get Revenue Audit done? And what are the reports generated for this audit.

Hitesh Khanna (Accounting & Finance Taxation Company Law Audit ) (839 Points)
Replied 30 July 2014

Revenue Audit is not compulsory in India on Companies.

Revenue Audit is Conduted by Banks to identify their revenue Leakages. This kind of Audit Covers a time Gap of 2-5 Years depending upon te Mangement's Decison.

The reports will depend upon the Pupose of Audit.