SUNNY (CA Final & CS Professional) (327 Points)
31 December 2010First of all Wishing all a very happy last day of 2010 and New year in advance....
Frinds my question i want to know what points should be lept in mind when we are performing ledger scrutiny nad also tell me from wher we whould begin to scrtunized ledgersss .. if possible then also mail me file related with this.. my id is sunny_rahul111 @ yahoo.co.in
Thanks.. hope i ;ll receive answers soon.
sahil
(Executive)
(102 Points)
Replied 01 January 2011
first of alll always check first audit fees a/c ...haha
check proper tds has been deducted
u can check any payment made above 35000
all outstading and prepaid entries to be checked
banks c/a should be checked ...wether all d charges have been included....
proper dep.. has been entered in F A a/c
u can check capital exp and revenue exp wether proper treatment is bieng done ....once i found petrol exp were entered in F ASSET A/C
thats it ..if more comes in mind i will surely post
sahil
(Executive)
(102 Points)
Replied 01 January 2011
check all personal expenses .....sometimes any hospital treatment in govt hospital are entered in donation a/c it should treated as drawings
SUNNY
(CA Final & CS Professional)
(327 Points)
Replied 04 January 2011
thankyou buddy... n please share more if yu have .........
Nilesh Jain
(Assistant Manager)
(1064 Points)
Replied 05 January 2011
First of all see whether there are variances in G.P. and Net Profit Ratio from last year. if it is the case than inquire about the same.
Pooja
(Associate)
(26 Points)
Replied 16 April 2012
no duplicate ledgers are created for the same person
Chetan
(Audit Associate)
(21 Points)
Replied 24 July 2012
First of all do opening balance testing, check whether there are any deviations from the balances as per last audited balance sheet and opening figures of the year being audited.
Then, check whether entries recorded are in accordance with the accounting principles.
Creation of Provisions.
Prior period expenses (By going through Invoices)
Proper calculation of Prepaid expenses.
Proper capitalisation of assets and calculation of deprecaition.
Various statutory dues like Service tax, TDS, VAT/CST, Excise & Custom duties, PF, Professional tax are paid within the due date and accounted properly in books of accounts. Accounting in case of penalty and interest charged by the govt. authorities.
For TDS, Party ledgers should be scrutinized 100%.
Check applicability of various accounting standards and their implications on the entity of which you are doing ledger scrutiny.
Check from the view point of Section 40 A 3, 40 A 2b, 269 SS, 269 T, 2(22)(e), 43 B of income tax act. Section 372 A, 295, 205 of companies act.
There could be many more points but these are the main points which should not be ignored.
CAclubindia
