Annexure.

SA List AS List Particulars

No. Sheet
completen
ess check

Audit Planning Memo

SA 230 Audit documentation
SA 300 Audit Planning Memo
1 Secretarial Compliance Error
2 Opening Balance Verification Error
SA 510 Initial Audit Engagements - Opening Balances
3 (I) Share Capital & Share Allotment Money Error
3 (II) Reserves and Surplus Error
4 Borrowing (Long Term & Short Term) Error
AS 16 Borrowing Cost
SA 505 External Confirmation
4 (1) Borrowing schedule N.A.
5 Liabilities (Long Term & Short Term) Error
SA 505 External Confirmation
6 Provisions (Long Term & Short Term) Error
7 Contingent Liabilities Error
AS 29
Provision, Contingent Liabilities and Contigent Assets
SA 505 External Confirmation
8 Fixed Assets (including Intangible & CWIP) Error
AS 10 Fixed Assets
AS 26 Intangible Assets
AS 28 Impairment of assets
9 Investment (Current & Non-Current) Error
AS 13 Investment
SA 505 External Confirmation
10 Loans & Advances (Long Term & Short Term) Error
SA 505 External Confirmation
11 Inventories Error
AS 2 Valuation of Inventory
SA 505 External Confirmation
12 Trade Receivables Error
SA 505 External Confirmation
13 Cash and cash equivalent Error
SA 505 External Confirmation
13(1) Physical Cash Verification Report N.A.
14 Summary of Statutory Reconciliation Error
14(1) SA 250 Consideration Of Laws And Regulations In An Audit Of
Financial Statements
15 Revenues (Direct) Error
AS 9 Revenue Recognition
 AS 17 Segment Reporting
16 Expenses Error
17 Tax Workings Error
18 Payroll Error
AS 15 Accounting for Retirement Benefits In the Financials
Statement of Employer
19 Misc. Working Papers N.A.
AS 1 Disclosure of Accounting Policies
AS 3 Cash Flow Statement
AS 4 Contingencies and Events Occurring after Balance Sheet
date
AS 5 Net profit / loss for the period, prior period items &
change in accounting policies
AS 6 Depreciation Accounting
AS 7 Accounting for Contruction Contracts
AS 11 Accounting for effects of changes in foreign exchange
rates
AS 12 Accounting for Government Grants
AS 14 Accounting for Amalgamation
AS 19 Leases
AS 20 Earning Per Share
AS 21 Consolidated Financial Statements
AS 23 Accounting for Investment in Associates in Consolidated
financial statement
AS 24 Discounting Operations
AS 25 Interim Financial Reporting
AS 27 Financial Reporting of Interest in Joint Venture
AS 31 Financial Instruments Presentation
19(1) SA 220 Quality control for an audit of financial statements
SA 260 Communication with those charged with governance
SA 265 Communicating deficiencies in internal control with
those charged with
The Auditor’s governance Relating To Fraud In An
Responsibilities
SA 240 Audit Of Financial Statements
SA 320 Materiality In Planning And Performing An Audit
SA 530 Audit Sampling
SA 402 Audit Considerations Relating To An Entity Using A
Service Organisation
SA 560 Subsequent Events
SA 580 Written Representations
20 Related Party Error
20(1) SA 550 Related Party
SA 505 External Confirmation
AS 18 Related Party Disclosures
21 Partner’s review Point Error
 Interim
audit areas

Y
Y

Y
N
Y

N.A.
Y

N
N

Y
Y

Y
Y
Y
Y

N
 Company Name
Audit Planning Memorandum
Company Master Information :
Reg. Office Address :
Works Address :

PAN :
CIN :
TAN :
Date Of Incorporation :
Website :
Audit Period :

SA 230: Audit documentation

I Has the auditor prepared / updated the audit file for recurring audits?
II Whether Current audit file (working papers file) include following:
1 Correspondence relating to acceptance of annual appointment?
2 Copy of draft financial statements and signed financial statements
3 Comments received from client?
4 Copies of all final reports issued to client
5 Observation on accounts and points carried forward to next year?
6 Important final journal entries eg. Depreciation, Provision for Tax, Deferred Tax
etc.
7 Audit completion report?
8 Important matters in minutes of board meeting, Audit committee and general
meeting?
9 Time and cost Summary?
10 Briefing to staff notes
11 copy of Audit Plan & planning letter to client
12 Points from previous year?
13 Balance sheet, Statement of profit and loss account and cash flow statement?

14 Audit systems testing working papers such as

Lead Schedules?
Audit programmes?
Checklists?
Queries raised and explainations received?
Third party confirmations and certificate?
Weakness identified and copy letter of weakness to client?
Trial balance?
Cross referencing between the back up schedules, lead schedules and the accounts?

14 Analysis of transaction and balances (Notes on important points and decisions

taken during scrutiny of accounts)?
15 Evidence that work performed by assistants has been reviewed?
16 Copies of communication with the other auditors, experts and third parties?
17 Letter of representations, confirmation obtained from client?
18 Significant matters on which the auditor has made judgments and drawn
conclusions?
III Does the Permanent audit file include:
1 Legal, organisational and management structure of the entity?
2 Memorandum / Articles of Association?
3 Acts and regulations (in case of Statutory corporations)?
4 Nature and History of the Business?
5 Profile of Ownership?
6 Registered Office Details?
7 Industry specifications with reference to size and economic factors affecting the
industry?
8 Purchase volumes, policies and major suppliers?
9 Sales volumes, policies and major buyers?
10 Inventory norms, levels?
11 Personnel details - numbers, method of remuneration, union agreements,
contracts,HR policy?
12 Study and evaluation of internal controls related to accounting systems?
13 Significant audit observations of the past?
14 Details of method of accounting including cost accounting, flowcharts, specimens
of accounting documents, code structure and list of accounting records?

15 EDP - system security, source code security, authorisation and backup policy?
16 Lease agreements photocopies/extracts of the same?
17 Title deeds inspected annually by auditor?
18 Royalty agreement?
19 Group structure - subsidiaries, associates, JVs, auditors name?
20 Names of bankers, Solicitors, Investment Analysts, Registrars, Credit Rating?
21 Audited financial statements of last 5 years?
22 Analysis of significant ratios, performance indicators and industry statistics?
23 Record of communication with retiring auditor?
24 Any other information of a permanent nature?
SA 300 Audit Planning

I Overall audit strategy that sets the scope, timing and direction of the audit,
and that guides the development of the audit plan.
1 Knowledge of client’s accounting systems, policies, procedures and internal
control procedure?
2 The degree of reliance he wants to place on accounting system and internal
control?
3 The identification of significant audit areas?
4 The setting of materiality levels?
5 Conditions requiring special attention, such as:- possibility of error or fraud or the
involvement of parties in whom directors, or persons who are substantial owners of
the entity are interested?
6 Complexity of business?
7 Nature and timing of reports and extent of the audit procedure to be performed?

8 Co-ordinating the work to be performed?

9 Involvement of experts?
10 Points from Previous years?
11 Internal managements reports?
12 Pronouncements of the ICAI affecting the audit?
13 Current business developments?
14 Significant changes in technology, events affecting the client’s business?
Shareholders in the Company :
Name of the Share holders No. of Shares Holding % Nominal Value

Total - 0.00% -

Directors of the Company :

Name of Director App. Date Type DIN
Director
Director
Director

Personnel in Finance Department:

Name Designation E-Mail Contact No.

Ask Organisational chart

Our Engagement :
We are engaged by (__Name of Company__) ("the company") vide letter dated ***** to conduct the audit of the financial
statements as at 31st March 2016 in accordance with provisions of Companies Act 2013 & Income-tax Act, 1961 (u/s 44AB -
Clause a) vide letter dated *****.
Audit Team :
Name Responsibilities
CA. Shreedhar Pathak
CA. Tushar Zagade
Article assistant
Article assistant

Interim audit Final audit

Review dates of CA. Shreedhar Pathak
Review dates of CA. Tushar Zagade

Qualification in previous years audit report & negative remarks :

Dates of Audit :

Prepared by : Date :
Name & Signature : (________________________________)

Reviewd by : Date :
Name & Signature : (________________________________)

Approved by : Date :
Name & Signature : (________________________________)
List of secreterial documents

Sr. No. Particulars Yes / No / Remark

NA

1 AOC 4 (BS, P&L and Other documents filing with

ROC)
2 23ACA (PL account & Other documents filing with
ROC)
3 MGT 7 (Annual Return Filing)
4 MGT 8 (Submission of Compliance Certificate with
ROC)
5 ADT-1 (Information by auditor with ROC)
6 Any Declaration by directors
7 Letter appointment of Auditors
8 Acceptance by Auditors
9 Intimation to ROC for auditors appointment
10 All compliance documents related with AGM
(Minutes, Resolutions, Notice)
11 All compliance documents related with EGM
(Minutes, Resolutions, Notice)
12 All compliance documents related with BM (Minutes,
Resolutions, Notice)
13 Compliance under Corporate Social Responsibility -
1. Applicable or not
2. Whether CSR expenditure made
3. Board meeting & Minutes

Conclusion :

Prepared by : Date : 01/01/2017

Article assistant

Reviewd by : Date : 01/01/2017

CA. Tushar Zagade

Approved by : Date : 01/01/2017

CA. Shreedhar Pathak
Annexure. No. : 2
Opening Balance Verification

Sr. No. Particulars Yes / No / NA Value impact Reference / reasons,

if any

1 Differences in grouping

Share Capital 0.00

Reserve & Surplus 0.00
Loan Liability 0.00
Fixed assets 0.00
Cash & Bank balances 0.00
Sundry Debtors 0.00

Sundry Creditors 0.00

Duties & Taxes

2 Differences in values
**mention specific ledger
difference found during scrutiny
like deferred tax, etc
Deferred tax
Provision for taxation
TDS

SA 510 Initial Audit Engagements - Opening Balances

Name of Audit Assistant / Manager

Name of Reviewer
Period Covered
Carry forward points

Objective
a Whether opening balance match with audited financial statements with
previous period
b In case previous auditor is changed and NPCA is appointed have we ensured
the above
Conclusion :

Prepared by : Date : 01/01/2017

Article assistant

Reviewd by : Date : 01/01/2017

CA. Tushar Zagade

Approved by : Date : 01/01/2017

CA. Shreedhar Pathak
Annexure. No. : 3 (I)
Share Capital & Share Allotment Money

To be obtained
Sr. Particulars W/P Ref. Done by Comments, If Any
No.
1 Latest copy of Register of Members as at the year end

Sr. Particulars Yes / No / Data / Document Conclusion /

No. N.A. obtained Answer of the
checklist

1 Has authorized share capital been checked with memorandum and Articles
of association or amending documents? Verify the same as per Annual
Return filed for last year.

2 Have you reviewed minutes authorizing movement in capital along with

evidence of submissions with the Registrar of Companies?
3 a) Whether shares were issued for cash u/s 143(f) of Companies Act, 2013?
b) If yes, whether cash has been actually received?

Obtain the relevant documents filed with the ROC.

4 Whether shares have been issued for consideration other than cash, If yes
has the consideration been correctly described in the accounts.

5 a) Whether Redeemable preference shares were issued?

b) Whether terms of redemption thereof is as per section 55 of the
Companies Act, 2013?

6 Whether there has been any redemption of Preference Shares?

a) If yes whether Capital Redemption Reserve is created out of Profits?
b) Whether the terms have been followed, if not append details.

7 Expenses incurred on : (Mention the amount if any),

a) Increase in authorized capital
b) Issue of share certificates
c) Public issue

8 What are the total calls unpaid? Has the amount been classified as under:
a) By directors
b) By others

Conclusion :

Prepared by : Date : 01/01/2017

Article assistant

Reviewd by : Date : 01/01/2017

CA. Tushar Zagade

Approved by : Date : 01/01/2017

CA. Shreedhar Pathak
Annexure. No. : 3 (II)
Reserves and Surplus

Sr. Particulars Yes / No / NA Data / Document Conclusion / Answer

No. obtained of the checklist

1 Have you reviewed the minutes authorizing the movements in Reserves?

2 Ascertain whether reserves are required to be created/maintained in

Respect of:
a) Various sections under Income tax Act?
b) Debenture redemption reserve - Companies Act, 2013.
c) Capital redemption reserve - Section 55 - Companies Act, 2013.

3 Transfer from Reserves to:

a) Profit and loss account - Rs.
b) General reserve - Rs.
4 Is there a reserve which is represented by earmarked investments?
Whether such a reserve has been shown as a Fund?

5 Securities premium reserve created out of issue of shares during the year.
If yes,
No. of shares issued x premium per share

Conclusion :

Prepared by : Date : 01/01/2017

Article assistant

Reviewd by : Date : 01/01/2017

CA. Tushar Zagade

Approved by : Date : 01/01/2017

CA. Shreedhar Pathak
Annexure. No. : 4
Borrowing (Long Term & Short Term)

To be obtained
Sr. Particulars Yes / No / N. Data / Document obtaine Comments, If Any
No.
1 Balance confirmation from bank / lender granting the secured loan
2 Secured loan agreement copy
3 Schedule of secured loans giving details such as: (refer sheet 4(1))
4 Reconciliation statement for each secured loan
5 Documents relating to registration of charge with ROC
6 Documents relating to satisfaction of charge with ROC

Sr. Particulars Yes / No / Data / Document Conclusion / Answer

No. N.A. obtained of the checklist

1 Give the following particulars for each loan:

Refer sheet 4(1)
2 Is it ensured that all interest charges have been accounted for?

3 If leasehold assets under finance leases exist, (or hire purchase

contracts with similar characteristics), has the amounts of
obligations related to finance leases (net of finance charges allocated
to future period) disclosed separately from other obligation

4 Is it ensured that in instances where loans have been pre-maturely

settled all charges‟ falling due on such settlement are properly
accounted for? If yes, list out the loans which are prematurely
settled.

Secured Loan
1 Whether the interest accrued and due is included under the
secured loans and not grouped under current liabilities &
provisions?
2 Whether the interest accrued but not due is not disclosed under
secured loans? The same should be grouped under current liabilities
& provisions

3 Whether terms of redemption of debenture have been specified in

notes to accounts?
4 Whether the company has issued any debentures? If yes whether the
securities or charge has been created.
5 Whether proportionate amount for debenture redemption fund has
been appropriated? (Refer CLT guideline dated. 14-1-1987)
 Unsecured Loan
1 Has interest accrued but not due been excluded from Unsecured
Loans and shown under current liabilities?
2 Have you considered the applicability of section 2(22) (e) of the IT
Act to any of the loans taken?
Public Deposit
1 Whether the company has accepted any public deposit?

2 Whether the company has accepted any loans other than directors?,
If yes give the following details. Name, Amount and nature of
relationship with director or shareholders
3 Whether the company has given any loans and advances by pledging Further details to be
of shares or securities? If yes whether the proper documents and given in Schedule II of
records are maintained. this sheet
Guarantee
1 Whether the company has given any guarantee for loans taken by
others from bank or financial institution?
If yes give in notes the terms and conditions.

AS-16 Borrowing Costs YES

(Applicable to Level - I, II, III)
1 Whether the enterprise in the process of
i) Setting-up capital project?
ii) Manufacturing inventories.
2 Are any specific borrowings costs, including of following nature
made by enterprise
i) Interest and commitment charges?
ii) Amortisation of discounts or premium to borrowing?
iii) Ancillary costs in connection with borrowings?
iv) Finance charges in respect of assets acquired under finance
lease?
v) Exchange difference arising from foreign currency borrowing
regarded as interest costs?
3 Whether expenses incurred above is capitailsed as a part of cost of
Asset?
4 Whether capitalisation of borrowing cost ceased when substantially
all the activities relating to the asset is ready to put to use?

5 Whether the following disclosure made in the financial statements?

i) The accounting policy adopted for borrowing costs
ii) The amount of borrowing costs capitalised during the period.
SA 505
External Confirmation
Sr. Audit Procedures Yes / No / Data / Document Conclusion / Answer
No. N.A. obtained of the checklist
1 Whether external confirmation have been obtained?
2 What is the level of materiality for external confirmations?
(In Rs. *********)
3 Whether selection of parties from whom confirmations have
been asked for is done by us?
4 Balance confirmation statistics
Confimation analysis:
Date of balances confirmed.
Number of confirmations called for.
Number of confirmations received.
Value of confirmations sent.
Value of confirmations received.
Positive confirmations received
Negative confirmations received
Whether a reconciliation statements are prepared for the
confirmation received
5 In case of any discrepancies observed in external confirmations,
has the management reconciled the differences?
Conclusion :

Prepared by : Date : 01/01/2017

Article assistant

Reviewd by : Date : 01/01/2017

CA. Tushar Zagade

Approved by : Date : 01/01/2017

CA. Shreedhar Pathak
 Sheet updated by Back
Cross checking expected on sampling basis Sheet updated date

Schedule I - Loans Taken

Sr. Particulars / Description Amount outstanding Period and Interest Type Secured O/S as on O/S as on Repayme EMI Total Int. Max bal Min bal
No. Payable > Payable <= 1Year terms of Rate or Unsecured 31/03/16 31/03/15 nt EMI charged during during
1Year repayment the year the year
1 0 0 0
2 0 0
3 0 0
4 0 0
5 0 0
6 0 0
7 0 0
8 0 0
9 0 0
10 0 0
Total 0

Schedule II - Loan Given

Sr. Particulars / Description Amount outstanding Period and Interest Type Secured Whether O/S as on O/S as on Repayme EMI Total Int. Max bal Min bal
No. Payable > Payable <= 1Year terms of Rate or Unsecured given by 31/03/16 31/03/15 nt EMI charged during during
1Year repayment pledging the year the year
of shares?
1 0 0 0
2 0 0
3 0 0
4 0 0
5 0 0
6 0 0
7 0 0
8 0 0
9 0 0
10 0 0
Total 0
Annexure. No. : 5
Liabilities (Long Term & Short Term)

To be obtained
Sr. Particulars W/P Ref. Done by Comments, If Any
No.
1 Balance confirmation from majority of the creditors as at
the year end

Sr. Particulars Yes / No / Data / Document obtained Conclusion / Answer

No. N.A. of the checklist

1 Is the audit tests included a search for liabilities existing at

the Balance Sheet date that have not been recorded?
1. Advance given & liability not booked
2. Tally creditors confirmations with their closing balances
3. Related party balance confirmations
4. Liability identified during the scrutiny
5. Retainership liabilities to be booked periodically.
6. Comparative analysis to be prepared

2 Is it satisfied that the liability for all goods received /

services rendered, goods returned claims made, have been
accounted for the correct accounting period?
3 Whether balance confirmation invited from Suppliers?
If "Yes" then, whether responses are satisfactory?
Enquiry with concerned department.
4 In case confirmations are not called for is a disclosure
considered necessary?
5 Have all debit balances in the creditors ledger been
included under debtors (for presentation purposes)? If "No”
please comment.
7 Have subsequent payments made to parties, have been
marked to ensure the liability outstanding as on 31st March
is genuine and does not call for write back / adjustment as
such

8 Have you obtained list of creditors outstanding for more

than 12 months along with reason for nonpayment? Mark
disputed list of creditors seperately
9 Is the year-end cut off procedures verified by examining
post year-end invoices and goods received notes, etc.?

10 Are other liabilities such as short term loans shown

separately? If "No" please provide details.

11 Have you noticed unusually large debit or credit balances?

If yes give details. (If applicable unhide below rows)

12 Have you verified that unclaimed / unpaid dividends have

been maintained in separate bank accounts?
SA 505
External Confirmation
Sr. Audit Procedures Y / N / NA REMARKS
No.
1 Whether external confirmation have been obtained?
2 What is the level of materiality for external confirmations?
(In Rs. *********)
3 Whether selection of parties from whom confirmations have been
asked for is done by us?
4 Balance confirmation statistics
Confimation analysis:
Date of balances confirmed.
Number of confirmations called for.
Number of confirmations received.
Value of confirmations sent.
Value of confirmations received.
Positive confirmations received
Negative confirmations received
Whether a reconciliation statements are prepared for the
confirmation received
5 In case of any discrepancies observed in external confirmations,
has the management reconciled the differences?

Conclusion :

Prepared by : Date : 01/01/2017

Article assistant

Reviewd by : Date : 01/01/2017

CA. Tushar Zagade

Approved by : Date : 01/01/2017

CA. Shreedhar Pathak
Annexure. No. : 6
Provisions (Long Term & Short Term)

Sr. Particulars Yes / No / Data / Document Conclusion / Answer of

No. N.A. obtained the checklist
1 Whether acturial valuation report is obtained as at the year-end for
employee related provisions:
a Gratuity
b Leave Encashment
c Super annuation
d

2 Whether the assumptions in the acturial valuation report are in accordance

with the policy of the Company and the data is accordingly provided to the
actuary?
3 Basis of identification of liabilities as short term / long term. (Take working
in softcopy & Cross Check with the final Balance sheet figure)
4 Short term provisions identified by the management.
a Gratuity
b Leave Encashment
c Proposed Dividend
d Dividend Distribution Tax
e Employee Benefits
f Provision for Income-tax
g Office expenses
h Telephone including mobile
i Broadband
j Audit fees
k Rent
l Interest
m Commission

5 Are there any large provisions included in creditors and not shown
separately under different Head as such?
6 Whether there are any dues to MSME registered creditors? Has the
company obtained the MSME status for these creditors?
7 Whether suitable note is given in the notes to accounts for dues to MSME
entities?
8 Have you obtained a list of outstanding liabilities along with corresponding
provision of earlier period and scrutinized any material variance/omissions?

Conclusion :

Prepared by : Date : 01/01/2017

Article assistant

Reviewd by : Date : 01/01/2017

CA. Tushar Zagade

Approved by : Date : 01/01/2017

CA. Shreedhar Pathak
Annexure. No. : 7
Contingent Liabilities

Sr. Particulars Yes / No / Data / Document Conclusion / Answer of

No. N.A. obtained the checklist

1 Did the audit procedures include a search for unrecorded commitments

and liabilities?
1) 26AS
2) Management Discussions
3) Traces website for TDS
4) Consultants certificate for outsourced statutory compliances
5) Third party documents like LC, warranties, commitments, etc.

2 Have you obtained a note describing system of recording contingent

liabilities of the company?
3 Have all contingent liabilities been shown as a note to the Accounts?
If "No" please give details.
4 Were the contingent liabilities confirmed by the management in the
Letter of Representation?
5 Was the information provided by the company confirmed with
independent parties, wherever possible? (To the extent possible such
information should be obtained from outside consultants of the
company to have endorsement).

6 If not, how does the company’s system ensure that all such claims and
contingent liabilities will be duly recorded and brought to the notice of
the management and eventually in the Financial Statements?
7 Have you reviewed last year’s contingent liabilities and ensured that
these have been duly considered for the current year’s account?
8 Have you ensured that separate disclosures have been made for the
following as required by Schedule III of the Companies Act?
a Claims against the company not acknowledged as debts.
b Uncalled liability on shares partly paid.
c Arrears of fixed cumulative dividends (The period for which
the dividends are in arrears or if there is more than one class of
shares, the dividends on each such class are in arrear)

d Estimated amount of contracts remaining to be executed on

capital account and not provided for.
e Other money for which the company is continentally liable.

f The amount of any guarantees given by the company on behalf

of directors or other officers of the company and where
practicable, the general nature and amount of each such
contingent liability, if material.

AS-29 Provision, Contingent Liabilities and Contigent Assets YES

9 Are all the following conditions been met, when a provision is

made;
a The enterprise has a present obligation as a result of past event?

b It is probable that an outflow of resources embodying

economic benefit will be required to settle the obligation?
c A reliable estimate can be made of the amount of the
obligation?
10 Have you ensured that the enterprise has not;
a Recognised any contingent asset?
b Recognised gains from the expected disposal of assets?
c Made provisions for future operating losses?
Conclusion :

Prepared by : Date : 01/01/2017

Article assistant

Reviewd by : Date : 01/01/2017

CA. Tushar Zagade

Approved by : Date : 01/01/2017

CA. Shreedhar Pathak
Annexure. No. : 8
Fixed Assets (including Intangible & CWIP)

Sr. Particulars Yes / No / Data / Document Conclusion /

No. N.A. obtained Answer of the
checklist

1 Have the fixed assets purchased under hire purchase / lease agreements been
correctly and consistently accounted for? (Existing asset + Newly purchased
during the year).
2 Does the Board of Directors approve all major additions / disposals?
If "No" is the method of approval satisfactory?
1. Check authority matrix
2. Discuss with concern person of the company

3 Have the accounting policies for capitalizing fixed assets been applied
4 consistently
Is it satisfiedfrom yearclient
that the to year?
has valid title to the land and other fixed assets stated
in the Accounts?
5 Are all fixed assets (other than Land) being depreciated?
6 Are the bases and rates of depreciation the same as last year? If not state the
differences and indicate their financial effect, if not already shown in the
Accounts.

7 Are the depreciation rates appropriate, having regard to the estimated useful
lives of the assets?
8 Have useful lives been reviewed for reasonableness in the light of current
conditions?
9 Have transfers of fixed assets between group companies been properly
accounted for?
10 Are major items of fixed assets physically examined and checked against the
company's records?
11 Has any capital work-in-progress been properly accounted for?
12 Have you distinguished premises between land and buildings and also between
freehold and leasehold? If "No" please give details.
13 Have you scrutinized repair accounts to ensure no items of capital nature are
included therein or visa-versa.
14 Has expenditure prior to the asset being put to use been capitalized accordance
with AS 10?
15 Where fixed asset has been acquired from outside India and the rate of exchange
changes after acquisition, the increase/decrease in the liability of the company
for repayment of the whole or part of the money borrowed in any foreign
currency for acquisition. Also check section 43A of IT Act.

16 Whether assets given on lease separately shown?

Lease Equalization Account made and disclosed?
 17 Take on record the basis on which fixed assets manufactured by the company are
capitalized?
18 If asset acquired is a replacement, Check that asset replaced has been deleted
from the assets account.
19 In case of Goodwill, if purchased, have you verified the agreement with vendor
and ensure its disclosure at cost price?
20 Have fixed assets been revalued during the year? (If yes, unhide below rows)

21 Have you ensured that: -

a Immovable properties held as investments and as stock-in-trade have
been shown accordingly in the accounts?
b Most of the fixed assets were in use during the year? If not please give
details
c All fixed assets have been adequately insured?
22 a) Are there any scientific research fixed assets? (If yes, unhide below rows)

23 Obtain detailed note on Inhouse development of Intangible Asset -

Apportionment of Expenses to CWIP, Basis of Apportionment, etc.
24 Whether any fixed assets has been disposed during the year. If Yes give the
particulars and Percentage of net value sold. corresponding to total Value of Net
Assets.
AS-10 Accounting for Fixed Assets YES
1 In case of capitalization of Fixed Assets whether the following is included in
cost:
2 i) Purchase price including import duty and other non-refundable taxes or levies
(capital MODVAT if availed then excluded from cost)?
ii) Interest cost (net of income, if any) specific / general borrowing capitalized?

iii) Expenditure on test-runs and experimental production till commercial

production?
3 Whether only those expenses, incurred on existing assets, which increase
capacity have been capitalised?
4 Whether assests are revalued during the year? If Yes, Whether Disclosure in
accounting policy is made.
5 Major capitalisation has to be done as per sheet attached here -
AS-26 Intangible Assets YES
(Applicable to Level - I,II,III)
1 Has the enterprise expended resources or incurred liabilities, iteralia on;
i) Acquisition?
ii) Development?
iii) Enhancement of intangible resources?
2 Whether the intangible asset amortised-
i) Over the best estimate of its useful life?
ii) If not as per (a), over 10 years?
iii) Enhancement of intangible resources?
3 Is the enterprise amortising the intangible asset/s using one or more of the
following
i) Straight methods for different intangible assets
line method?
ii) Diminishing balance method?
iii) Unit of production method?
4 Intangible asset has to be capitalised as per attached sheet -
AS-28 Impairment of Assets YES
(Applicable to Level - I,II,III)
1 Has the enterprise assessed at the balance sheet date whether there is any of the
following indication that indicate impairment of an asset?
i) Significant decline in market value of an asset?
ii) Significant changes with adverse effect in the technological, market,
economic or legal environment in which the enterprise operates?
iii) Increase in market interest rates or market rate of return on investment that is
likely to affect the discount rate used in calculating an asset’s value in use and
decrease the asset’s recoverable amount materially?

iv) Carrying amount of the net assets of the enterprise is more than its market
capitalisation?
v) Evidence available of obsolescence or physical damage of an asset?

vi) Evidence that the economic performance of an asset is or will be worse than
expected?
vii) Has the enterprise estimated the recoverable amount of that asset?
2 Is the carrying amount of an asset lower than
i) The net selling price?
ii) The value in use?
3 If impairment loss for an individual asset or a cash-generating unit recognised or
reversed during the period is material to the financial statement, as a whole, has
the enterprise disclosed. (If yes, unhide below rows)

Conclusion :

Prepared by : Date : 01/01/2017

Article assistant

Reviewd by : Date : 01/01/2017

CA. Tushar Zagade

Approved by : Date : 01/01/2017

CA. Shreedhar Pathak
Annexure. No. : 9
Investment (Current & Non-Current)

Sr. Particulars Yes / No / Data / Document Conclusion / Answer

No. N.A. obtained of the checklist
1 Have the certificates or other documents, evidencing the client's ownership of all
its evidencing the client's ownership of all its Investments and securities?

2 Was satisfactory evidence and authority seen to support any purchase and / or sale
of investments ?
3 For quoted investments, is the market value at year end shown in the accounts? If
"No" please state the market value.
4 If the market value is below cost has provision been made? If "No" please explain
why a provision is not considered necessary.
5 Have investments been physically verified?
6 In case of companies other than investment companies or banking investments are
sold at a price less than their purchase cost? If so, obtain written explanation from
management regarding justification for the same.
7 Whether an investment register is maintained and updated with each transaction of
investment? Has the list of investment verified been correlated with investment
register and ledger balance?
8 Have trade and other investments and income there from been separately shown in
the accounts?
9 In case of unquoted investments have you checked cost with break-up value as at
year end?
10 Has any investment been acquired in exchange of an asset?
11 If yes, whether investment has been valued at the fair value of the asset given up
or the fair value of the investment, if that is more fair?
12 In case of reversal of such provisions made in the earlier year due to increase in
the value of the investments whether such reversal amount has been credited to the
profit and loss account?
 AS - 13 Investments YES
1 Is the valuation policy in respect of investments considered, appropriate? Does the
cost of investments include all acquisition charges such as brokerage, duties and
fees? If "No" state reasons.
2 Whether investments are classified as current and long-term as specified in
paragraphs 26 and 27 of the Standard?
3 Have current investments been shown at lower of cost or market value?
4 Is tests carried out to ensure that all investment income receivable has been
included in the accounts?
(I) Interest, dividends (showing separately dividends from subsidiary companies),
rentals on investments
5 Are there any significant restrictions on the right of ownership, realisability of
investments or the remittance of income and proceeds of disposal? If so have these
been disclosed?
6 Have provision for diminution been shown as reduction from relevant class of
investments?
7 Whether accounting policy for determining the carrying amount of investments
disclosed?
8 Whether provisions made for diminution other than temporary in value of each
investments individually?
SA 505
External Confirmation
Sr. Audit Procedures Yes / No / Data / Document Conclusion / Answer
No. N.A. obtained of the checklist
1 Whether external confirmation have been obtained?
2 What is the level of materiality for external confirmations?
(In Rs. *********)
3 Whether selection of parties from whom confirmations have been asked for is
done by us?
4 Balance confirmation statistics
Confimation analysis:
Date of balances confirmed.
Number of confirmations called for.
Number of confirmations received.
Value of confirmations sent.
Value of confirmations received.
Positive confirmations received
Negative confirmations received
Whether a reconciliation statements are prepared for the confirmation
received
5 In case of any discrepancies observed in external confirmations, has the
management reconciled the differences?

Conclusion :

Prepared by : Date : 01/01/2017

Article assistant

Reviewd by : Date : 01/01/2017

CA. Tushar Zagade

Approved by : Date : 01/01/2017

CA. Shreedhar Pathak
Annexure. No. : 10
Loans & Advances (Long Term & Short Term)

Definition : includes deposits, advance payment of taxes, prepaid expenses, advances given to supplier, advances given to employees, etc.

Sr. No. Particulars Yes / No / Reference to Comments, If

N.A. Specific Item Any

1 Prepare a comparison chart showing figures of the previous year with

that of the current year. Give comment on the comparative analysis

2 Prepare a confirmation analysis sheet in terms of no. and value

Total advances
confirmations sent
% of advances sent for confirmation
confirmations received
Positive confirmations received
Negative confirmations received

3 Whether a reconciliation statements are prepared for the confirmation

received
4 Verify the balance of deposits from third party agreements (rent, lease,
etc.) bills (MSEB, Telephone, etc.)
5 Whether recovery of advances to employees is regularly done?
6 At what rate are these advances given?
7 Whether CENVAT credit (on service tax) is accounted for but not yet
availed is disclosed correctly as receivable?
8 Whether CENVAT available is seperately disclosed under Loans and
advances?
9 Excess VAT paid also is reflected as receivable under Loans & advances.

10 Based on above analysis, whether provision for doubtful advances is

required?
11 Whether the entity has given any advance to any shareholder having
substantial interest in the company?
And whether the same is treated as deemed dividend in the hands of
the receiver.
Also whether tax has been deducted u/s. 194 of the Income-tax Act,
1961?

12 Disclosures:
1) Advance to creditors
2) Income tax payments
3) Doubtful advances
4) Provision made for doubtful advances
5) Dues from directors / persons under the same management

13 Whether grouping under current & non-current assets verified?

SA 505
External Confirmation
Sr. No. Audit Procedures Yes / No / Data / Document Conclusion /
N.A. obtained Answer of the
checklist
1 Whether external confirmation have been obtained?
2 What is the level of materiality for external confirmations?
(In Rs. *********)
3 Whether selection of parties from whom confirmations have been
asked for is done by us?
4 Balance confirmation statistics
Confimation analysis:
Date of balances confirmed.
Number of confirmations called for.
Number of confirmations received.
Value of confirmations sent.
Value of confirmations received.
Positive confirmations received
Negative confirmations received
Whether a reconciliation statements are prepared for the
confirmation received
5 In case of any discrepancies observed in external confirmations, has
the management reconciled the differences?

Conclusion :

Prepared by : Date : 01/01/2017

Article assistant

Reviewd by : Date : 01/01/2017

CA. Tushar Zagade

Approved by : Date : 01/01/2017

CA. Shreedhar Pathak
Annexure. No. : 11
Inventories

To be obtained
Sr. No. Particulars W/P Ref. Done by Comments, If
Any
1 Stock physical verification sheets as at the year end
2 Accounting policy for valuation of inventory
3 Accounting policy for write-off / provision of obsolete items of
inventory
4 Cut off documents for sale invoices, GRN, issue slips, purchase
vouchers, delivery notes

Sr. No. Particulars Yes / No / Reference to Comments, If

N.A. Specific Item Any

1 Prepare a comparison chart showing figures of the previous year with

that of the current year. Give comments on the comparative analysis.

2 Has the list of physically verified inventories correlated with book

records?
3 Whether Stock statement generated from System or prepared manually?

4 Have major differences between physical and book stocks been

satisfactorily explained and adjusted in accounts?
5 Have you checked goods in transit with subsequent receipts? Whether
recognised based on invoices of the suppliers?
6 Are you satisfied that all work-in-progress is for current jobs?
7 What is the method and basis of valuation for the following?
a) Raw materials
b) Work-in-progress
c) Finished goods
d) Stores and spares

8 Costs should be allocated on normal production or production for the

year whichever is higher
9 Have adjustments been made to eliminate any unrealized profit on stock
supplied by other units?
10 Have you ensured that adequate provision has been made in respect of:
a) Slow moving or obsolete items.
b) Damaged items of stock.

11 Ascertain if there has been a substantial fall in realisable value of

finished stock after year end resulting in loss on sale.
12 Verify ageing of inventory?
13 Whether scrap materials is identified and valued?

AS-2 Valuation of Inventory (Revised) YES

1 Whether the inventory is valued at lower of cost and net realizable
value?
2 Which cost formula is used
i) Specific Identification
ii) FIFO
iii) Weighted Average
3 Have you prepared a detailed note describing components of cost and
basis of computing net realizable value?
4 Have you ascertained whether cost includes (for FG / WIP) -
i) Cost of purchase (Credits available on duties)?
ii) Direct labour?
iii) Production overheads?
iv) Such other direct cost to bring inventory to their present location and
condition?
5 If no, then quantify the effect of the same on the financial statements of
the Company as follows:
Balance sheet:
Current Asset -
Profit & Loss Account:
Closing stock of inventory
Profit / (loss) for the year
6 Provide the break up of Cost of Inventory?
7 Have you ensured that excise duty payable on finished goods is included
in the valuation of stock and sales tax has been excluded?
8 Whether Inventory is classified in to accounts-
Raw material and components, stores and spares and tools, Work in
progress, Finished Goods.
SA 505
External Confirmation
Sr. No. Audit Procedures Yes / No / Data / Document Conclusion /
N.A. obtained Answer of the
checklist
1 Whether external confirmation have been obtained?
2 What is the level of materiality for external confirmations?
(In Rs. *********)
3 Whether selection of parties from whom confirmations have been
asked for is done by us?
4 Balance confirmation statistics
Confimation analysis:
Date of balances confirmed.
Number of confirmations called for.
Number of confirmations received.
Value of confirmations sent.
Value of confirmations received.
Positive confirmations received
Negative confirmations received
Whether a reconciliation statements are prepared for the
confirmation received
 5 In case of any discrepancies observed in external confirmations, has
the management reconciled the differences?

Conclusion :

Prepared by : Date : 01/01/2017

Article assistant

Reviewd by : Date : 01/01/2017

CA. Tushar Zagade

Approved by : Date : 01/01/2017

CA. Shreedhar Pathak
Annexure. No. : 12
Trade Receivables

Sr. Particulars Yes / No / Data / Document obtained Conclusion / Answer

No. N.A. of the checklist

1 Prepare a comparison chart showing figures of the previous year with that
of the current year. Give comments on the comparative analysis.

2 Has adequate audit work been performed to verify that invoices for goods
dispatched /services rendered to customers have been accounted for in the
correct accounting period? (Cut Off Procedure)

3 Obtain list of debts due for more than:

0 to 60 days
60 days to 180 days
180 days to 1 year
1 year to 3 years
More than 3 years

4 Is the bad and doubtful debt provision specific and/or general?

If general, what is the basis and is it consistent with that of the previous
year?
5 Whether provision is adequate?
6 Have debtors balances been circularized and if yes refer pt. no. 10?
If "No”, have appropriate alternative procedures been followed to satisfy as
to the existence of the receivables?
7 Confimation analysis:
Date of balances confirmed.
Number of confirmations called for.
Number of confirmations received.
Value of confirmations sent.
Value of confirmations received.
Positive confirmations received
Negative confirmations received
8 Whether a reconciliation statements are prepared for the confirmation
received? Is there any impact on financial statement due to this?

9 Scrutinise of post year end settlements and credit notes. (obtain and verify
the bank statement for the 3/4 months after the year end to verify the
subsequent realization in case no balance confirmation is received from the
debtor.)

10 Have all credit balances in the debtors' ledger been classified with
creditors?
If not, Please provide full details where a set off has been made.
11 Whether reasons for non recovery/adjustment was obtained from the
management and taken on record? What are the steps taken by the
management for recovery of old outstanding?
12 Have you obtained a statement from the client explaining the manner of
legal action taken for debts that have become bad?
Append a note explaining status of each of the debts?
13 What action has been taken where balance confirmed does not tally with
books of account?
Scrutinize unconfirmed accounts especially if they are old.
14 Are there any receivable amounts due from Directors etc.
SA 505
External Confirmation
Sr. Audit Procedures Yes / No / Data / Document obtained Conclusion / Answer
No. N.A. of the checklist
1 Whether external confirmation have been obtained?
2 What is the level of materiality for external confirmations?
(In Rs. *********)
3 Whether selection of parties from whom confirmations have been
asked for is done by us?
4 Balance confirmation statistics
Confimation analysis:
Date of balances confirmed.
Number of confirmations called for.
Number of confirmations received.
Value of confirmations sent.
Value of confirmations received.
Positive confirmations received
Negative confirmations received
Whether a reconciliation statements are prepared for the confirmation
received
5 In case of any discrepancies observed in external confirmations, has
the management reconciled the differences?

Conclusion :

Prepared by : Date : 01/01/2017

Article assistant
Reviewd by : Date : 01/01/2017
CA. Tushar Zagade

Approved by : Date : 01/01/2017

CA. Shreedhar Pathak
 Natu and Pathak, Chartered Accountants
Annexure. No. : 13
Cash and cash equivalent

To be obtained (Refer sheet 14(1) for format)

Sr. Particulars Yes / No / Data / Document obtained Comments, If Any
No. N.A.
1 Cash balance to be physically verified certificate as of the year end date.
Obtain physical verification certificate.
2 Bank reconciliation statement for all bank account
3 Bank balance confirmation from all banks (although the bank statement is
available)
4 List of cheques on hand as of the year end date
5 Board resolution for opening new bank account and for closing of a bank
account

Sr. Particulars Yes / No / Data / Document obtained Conclusion / Answer

No. N.A. of the checklist
1 Whether cash have been verified at year end or during the year as a
surprise check?
2 Have outstanding entries in Bank reconciliation statement been traced to
subsequent bank statements?
3 Is any entry outstanding for unusually long time? If yes analyse the same

4 Have you ensured that losses, if any, due to exchange variation have been
accounted for in case of Foreign currency accounts?
5 Ascertain that the items in bank reconciliation at the year end pertain to
cheques deposited or issued before the year end?
6 Whether cheques on hand are included in cash on hand?
7 Provide following details of all bank accounts :
a. Bank A/c No.
b. Branch name
c. IFSC code
d. Address
e. Type of Account
 Natu and Pathak, Chartered Accountants
SA 505
External Confirmation
Sr. Audit Procedures Yes / No / Data / Document obtained Conclusion / Answer
No. N.A. of the checklist
1 Whether external confirmation have been obtained?
2 What is the level of materiality for external confirmations?
(In Rs. *********)
3 Whether selection of parties from whom confirmations have been
asked for is done by us?
4 Balance confirmation statistics
Confimation analysis:
Date of balances confirmed.
Number of confirmations called for.
Number of confirmations received.
Value of confirmations sent.
Value of confirmations received.
Positive confirmations received
Negative confirmations received
Whether a reconciliation statements are prepared for the confirmation
received
5 In case of any discrepancies observed in external confirmations, has
the management reconciled the differences?

Conclusion :

Prepared by : Date : 01/01/2017

Article assistant

Reviewd by : Date : 01/01/2017

CA. Tushar Zagade

Approved by : Date : 01/01/2017

CA. Shreedhar Pathak

Chec 0
k 0
0
Error
 PHYSICAL CASH VERIFICATION REPORT
Date & Time of Verification
Balance as per Cash Book
Physical Cash Balance -
Excess / (Short) -

Denominations Unit Amount

1000 -
500 -
100 -
50 -
20 -
10 -
5 -
Coins -
Subtotal -
Suspense/Advance -
Vouchers
Petty Cash- Transfer - -
Cash Cheque - -
Totals -

Details of Suspense/Advance Vouchers

Date Amount Advance to Purpose
Nil Nil Nil Nil
Nil Nil Nil Nil
Nil Nil Nil Nil
This is to certify that the cash balance as on is Rs.___ /- ( In Words )

Cashier: Authorized By: Audit Executive:

For Natu & Pathak

Chartered Accountants
Bank Reconciliations
Particulars Closing Bank Balance as per Reconcilation As per Bank Statements Difference
Balance
 PHYSICAL CASH VERIFICATION REPORT
Date & Time of Verification
Balance as per Cash Book
Physical Cash Balance $0
Excess / (Short) $0

Denominations Unit Amount

$100 $0
$0 $0
$0 $0
Coins $0
Subtotal $0
Suspense/Advance $0
Vouchers
Petty Cash- Transfer - $0
Cash Cheque - $0
Totals $0

Details of Suspense/Advance Vouchers

Date Amount Advance to Purpose
Nil Nil Nil Nil
Nil Nil Nil Nil
Nil Nil Nil Nil
This is to certify that the cash balance as on

Cashier: Authorized By: Audit Executive:

For Natu & Pathak

Chartered Accountants
 PHYSICAL CASH VERIFICATION REPORT
Date & Time of Verification
Balance as per Cash Book
Physical Cash Balance € 0.00
Excess / (Short) € 0.00

Denominations Unit Amount

€ 100.00 € 0.00
€ 50.00 € 0.00
€ 20.00 € 0.00
€ 10.00 € 0.00
€ 5.00 € 0.00
€ 2.00 € 0.00
€ 1.00 € 0.00
€ 0.50 € 0.00
€ 0.20 € 0.00
€ 0.05 € 0.00
€ 0.01 € 0.00
Coins € 0.00
Subtotal € 0.00
Suspense/Advance € 0.00
Vouchers
Petty Cash- Transfer - € 0.00
Cash Cheque - € 0.00
Totals € 0.00

Details of Suspense/Advance Vouchers

Date Amount Advance to Purpose
Nil Nil Nil Nil
Nil Nil Nil Nil
Nil Nil Nil Nil

This is to certify that the cash balance as on

Cashier: Authorized By: Audit Executive:

For Natu & Pathak

Chartered Accountants
 PHYSICAL CASH VERIFICATION REPORT
Date & Time of Verification
Balance as per Cash Book
Physical Cash Balance $0.00
Excess / (Short) $0.00

Denominations Unit Amount

$2.00 $0.00
$1.00 $0.00
$0.25 $0.00
$0.05 $0.00
Coins 0 $0.00
Subtotal $0.00
Suspense/Advance $0.00
Vouchers
Petty Cash- Transfer - $0.00
Cash Cheque - $0.00
Totals $0.00

Details of Suspense/Advance Vouchers

Date Amount Advance to Purpose
Nil Nil Nil Nil
Nil Nil Nil Nil
Nil Nil Nil Nil
This is to certify that the cash balance as on

Cashier: Authorized By: Audit Executive:

For Natu & Pathak

Chartered Accountants
Annexure. No. : 14
Summary of Statutory Reconciliation

Expectation : Summary & short note on statutory reconciliation sheet.

Sr. No. Particulars Yes / No / Data / Document Conclusion / Answer of

N.A. obtained the checklist

1 Excise duty Recociliation

Return
Observation
Impact on FS

2 Service tax Recociliation

Return
Observation
Impact on FS

3 VAT Recociliation
Return
Observation
Impact on FS

4 Labour Law Recociliation

Return
Observation
Impact on FS

5 Recociliation
Return
Observation
Impact on FS

6 Recociliation
Return
Observation
Impact on FS

7 Recociliation
Return
Observation
Impact on FS

Conclusion :

Prepared by : Date : 01/01/2017

Article assistant

Reviewd by : Date : 01/01/2017

CA. Tushar Zagade

Approved by : Date : 01/01/2017

CA. Shreedhar Pathak
SA 250
Consideration Of Laws And Regulations In An Audit Of Financial Statements

Name of Audit Assistant / Manager

Name of Reviewer
Period Covered
Carry forward points

Objectives
a To obtain sufficient appropriate audit evidence regarding compliance with the provisions of those laws
and regulations generally recognised to have a direct effect on the determination of material amounts and
disclosures in the financial statements;

b To perform specified audit procedures to help identify instances of noncompliance with other laws and
regulations that may have a material effect on the financial statements; and
c To respond appropriately to non-compliance or suspected non-compliance with laws and regulations
identified during the audit.

Sr. Particulars Y / N / NA Remarks

No.

1 Have you obtained a list of laws with which the entity has to comply with
either generally or specifically in relation to the industry it belongs to?
Sr. Particulars Registratio Consultant
No. n Numbers Name Contact Email ID
No.
a The Companies Act, 2013.
b Income Tax Act, 1961.
c CST Act, 1956
d MVAT Act, 2002.
e Central Excise Act, 1944.
f Customs Act, 1962.
g Foreign Exchange Management Act, 1999.
h The Employees’ Provident Fund Scheme, 1952.
i Payment of Bonus Act, 1965.
j Payment of Gratuity Act, 1972.
k The Maharashtra Labour Welfare Fund Act, 1953
l Any other applicable laws / regulations
2 Have you obtained in writing / through inquiry the policies and procedures
put in place by the entity for prevention and detection of non-compliance
with legal and regulatory framework applicable?
3 Do they include procedures for:
a Monitoring legal requirements of various laws?
b Instituting and operating appropriate system of internal controls?
c Communicating to the employees of the laws applicable to the tasks they are
responsible for?
d Identifying cases of non-compliance by employees of laws and code of conduct
adopted by the entity?
e Effective running of a legal cell and/or having legal advisors to monitor
compliance?
4 Have you broadly verified the effective operation/ functioning of the
procedures set by the entity through inquiry / substantive testing /
observation / evidence, etc.? In doing so have you:

a Discussed with persons such as VP Legal, Secretary, and other responsible

persons?
b Discussed with the internal auditors, legal and other advisors who have provided
service within an entity?
c Obtained information available pertaining to the industry?
d Obtained registration and other submissions made by the entity to the authorities?

e Inspecting correspondence with licensing authorities?

f Reviewed the internal audit scope and reports?
g Gone through returns, payment challans, notices, replies, appeals, etc, company
5 law
Howrecords, etc. rate the risk of material misstatement in case of non-compliance
would you
of the regulations based on the audit evidence obtained in steps above? [High /
Medium /Low]

6 Have you come across any ‘indications’ mentioned in the SA? (append a note)

a Based on the information collected and examining the potential indications have
you come across material instances of non-compliance with applicable laws?

If yes, have you quantified their impact/ probable impact in terms of fines,
penalties, litigation costs, damages, discontinuation of operations, expropriation
of assets, etc.?

b Do such financial impact require disclosure?

7 Have you communicated the non-compliance to the senior management or
obtained evidence of their knowledge of it?
8 Have you obtained a written representation from the management with regard to
the disclosure to the auditor of the actual and possible non-compliances?

[In case of suspected non-compliance and lack of management

representation/support, consider the possibility of communicating the same to the
management]
9 Based on financial impacts mentioned in 6 above on assets, liabilities, income,
and expenses whether a qualification / disclaimer is required in audit opinion

10 Based on observations 6 above whether contingent liabilities are disclosed in

financial statements
Annexure. No. : 15
Revenues (Direct)

Vouching Months : ________

Vouching Criteria : ________

To be Obtained
Sr. No. Particulars Yes / No / N.A. Data / Document
obtained

1 Sales Bills file

2 Accounting policy of the company
3

Work Done
Sr. No. Particulars Yes / No / N.A. Data / Document Conclusion /
obtained Answer of the
checklist

1 Prepare a comparison chart showing figures of the previous year with that of the current year.
Give comments on the comparative analysis.
2 Please note the first and last bill nos.
3 Ensure that sale of goods and services are accounted for in and accordance with the accounting
policy of the company.
4 Ensure that goods have actually been dispatched for all sales and that they are not incorrectly
considered in the stock.
5 Highlight all sales bills where no service tax or VAT has been charged.
6 Whether revenue recognition is in accordance with guidance given in AS-9?
7 Test the sales on sample basis to ensure that they are : Correctly
recorded
Duly authorized
Supported by documentary evidence
Matches with the Sales orders issued
Taxes are correctly accounted
The sample for this purpose can be selected on judgmental basis form sales throughout the
year. Please prepare an excel sheet for the sales verified with the comments on the above.

8 Have you checked income reflected in 26AS and books?

AS-9 Revenue Recognition YES
1 In case of sale of goods whether the revenue is recognized only when all significant risk and
rewards ownership have been transferred to the buyer and the enterprise has retained no
effective control of the goods transferred?
2 Whether other income is recognized at accrual basis.
3 In case, Revenue on construction contracts is recognised on Percentage Completion of
Contract, Refer AS 7, as above.
4 Revenue Recognition, should be on following basis. In case of vaiance, details to be reported.

i) Income from sale / services is accounted for when the job is completed, goods are dispatched
and invoice for the same is raised.
ii) Income from deposits is recognized on accrual basis.
5 In case of Services, if there is a material effect with regard to the part completion of services
under a contract, the revenue be recognised in the statement of profit and loss proportionately
with the degree of completion of services.
AS-17 Segment Reporting NO
1 Whether company is -
i) Listed Company.
ii) Companies turnover exceeds 50 crore.
2 If yes, is segment reporting made in financial statements ?
3 Is the financial reporting to the BOD/CEO based on -
- Product or Services based?
- Nature of activity like Manufacturing / Trading?
- Geographical area?
Indirect Income
1 Prepare a comparison chart showing figures of the previous year with that of the current year.
Give comments on the comparative analysis.
2 Whether there is scrap sale of raw material, etc.? If yes, how is the same valued and recognized
as income?
3 (i) Whether the entity has any term deposits/ margin money deposits with banks / others, which
are interest bearing? If yes,
i) recognition on accrual basis
ii) TDS booking
iii) Recheck with bank statement / confirmation

4 Have you checked income reflected in 26AS and books?

Conclusion :

Prepared by : Date : 01/01/2017

Article assistant

Reviewd by : Date : 01/01/2017

CA. Tushar Zagade

Approved by : Date : 01/01/2017

CA. Shreedhar Pathak
Annexure. No. : 16 Back
Expenses

Vouching Months : ________

Vouching Criteria : ________

To be Obtained :
Sr. No. Particulars Yes / No / Data / Document
N.A. obtained
1 Accounting policy of the company
2
3
4

Work Done

Sr. No. Particulars Yes / No / Data / Conclusion / Whether to include in

N.A. Document Answer of the LOR / Audit Report /
obtained checklist Notes to accounts
1 Prepare a comparison chart showing figures of the previous year
with that of the current year .Give comments on the comparative
analysis
2 Verify whether salary cost has been correctly accounted for.
Perform analytical procedures:
Enquire into the increment/bonus for the year and build up an
expectation and then compare with the amount of salary in the
books.

3 Verify whether periodical expenses bills (telephone, rent, electricity,

etc) are accounted for considering the whole year.
If bills for the last month/quarter not received, adequate provision is
made?
If the provision is so made, please ensure that the basis for the
provision is either based on the bill that is received in April or May
or at least more or less as per the previous bils.

4 Whether capital expenditure is debited to any expense head?

If yes, please prepare a schedule giving details (Description of item,
amount, quantity, name of supplier, etc) and quantify the amount

5 Verify whether prior period expenses are debited to any expense

head?
If yes,prepare a schedule giving details (Description of
expense,amount,setails why considered as prior period,etc.) and
quantify the amount.
Prior period expense: Please note that if an expense has
crystallised only in the current year,then the same may not
caterogised as a prior period expense

6 Verify whether any amount of penalty/fine is debited to any expense

head?
If yes,please prepare a schedule giving details (Description of
expense,amount,details of penalty,etc.) and quantify the amount.
Penalty/Fine: Fines are levied by government agencies for non-
compliance,but sometimes fines and penalties are in the nature
of interest (Late payment of taxes-Penalty is levied).There may
be penalties arising due to contractual obligations,the nature of
each penalty should be clearly documented.

7 Ensure that more the requirement of the schedule III part II i.e. for
statement of profit and loss complied with. Have you ensured the
same after reading schedule III?
For instance, one of the requirement is that expense which are more
than 1% of total turnover or Rs. 1,00,000/- whichever is higher is
disclosed under the seperate account head and not grouped under the
Miscellaneous expenses.

8 Is there any expenditure debited to profit & loss account on which

no tax is deducted ?
Ensure the same for payments to professionals, Contractors,
Payment of rent, commission,etc.

9 Verify subsequent year end procedures to identify the expenses

accounted in the next year but for whom provision is required in the
current year.
10 Are there any extraordinary items of income/Expense of significant
amount accounted for during the year under audit?
If yes,obtain and analyse the details thereof and consider whether
separate disclosure is required in the financial statements.

Conclusion :

Prepared by : Date : 01/01/2017

Article assistant

Prepared by : Date : 01/01/2017

CA. Tushar Zagade

Prepared by : Date : 01/01/2017

CA. Shreedhar Pathak
Annexure. No. : 17
Tax Workings

To be obtained

Sr. No. Particulars Yes / No / N.A. Data / Document

obtained
1 Computation of total income
2 Computation of MAT, if applicable.
3 Schedule for depriciation as per Income Tax
4 List and copies of TDS certificates for the year
5 List and copies of advance tax challans
6 List and copies of self assessment tax challans
7 Obtain the copy of previous year's audited TAX AUDIT schedule for depriciation
as per Income Tax Act, 1961.

Work done
Sr. No. Particulars Yes / No / N.A. Data / Document Conclusion /
obtained Answer of the
checklist
1 Reference all figures in the computation of total income &
computation of MAT.
2 Check and reference the opening WDV as per the previous
year's audited schedule.
Is there any difference in the above verification? Please
state clearly and unambiguously.

3 Check whether the rates of depreciation are as per the

Annexure - I as mentioned in the Income Tax Rules.
Have you read the said Annexure? Please state clearly
and unambiguously.
4 Have you checked from the bills and the date of put-to-use
for the classification of purchases before 180 days of the
end of the year and other purchases?
5 Have you ensured that the item of disallowance identified
in "Divider -: Profit & Loss - Expenses" are considered
in the computation of total income? If not, revise the
computation of total income to arrive at the correct income
tax liability.

6 What is the tax rate applicable for the current financial

year:
(i) Basic Income Tax Rate:
(ii) What is the rate of surcharge:
Is surcharge applicable to the entity?

(iii) Education Cess rate:

What is the effective income tax rate:

(iv) Rate of MVAT:

What is the effective MAT rate:
7 Does the computation of total income reveal that tax will
have to be paid as per MAT provisions?
8 If MAT is to be paid, calculate the MAT credit that can be
carried forward. This working is useful for recognizing the
Deferred Tax Asset (if any)
9 Have you casted the list of TDS challans? Is it correct?

10 Have you casted the list of Advance Tax challans?

Is it correct?
11 Have you casted the list of Self- Assessment Tax challans?
Is it correct?
12 Have you taken the output from Form 26AS and compared
the same with the list of TDS, advance tax and self-
assessment tax?
13 Is interest u/s 234C calculated for defermant in payment of
advance tax?
14 Is interest u/s 234B calculated for short payment of
advance tax? At least 90% of the advance tax has to be paid
in the "previous year" to avoid this interest liability.

15 Is the amount of provision for tax adequate and as per the

computation of total income?
16 Have you ensured that deferred tax schedule is correctly
drawn up as AS-22?
17 Has the company suffered losses during the financial year
and in case there is a deferred tax asset, whether the same
should be recognized in the books of account?
What is the fact on hand that
substatiaties the point that the above deferred tax asset will
be utilized or reversed in the coming year(s).
If there is no such fact, then the deferred tax asset should
not be recognized, instead the same should only be
mentioned in the notes to accounts.

Conclusion :

Prepared by : Date : 01/01/2017

Article assistant

Prepared by : Date : 01/01/2017

CA. Tushar Zagade

Prepared by : Date : 01/01/2017

CA. Shreedhar Pathak
Annexure. No. : 18
Payroll

To be Obtained
Sr.No Particulars Yes / No / N.A. Data / Document
obtained
1 Accounting policy of the company
2

Work Done
Sr. No. Particulars W/P Ref. Remarks / Whether to include in
Qualification / LOR / Audit Report /
Inconsistency in Notes to accounts
accounting,etc.
1 Whether payroll processing is inhouse / outsourced?
Obtain a contract of services
How and which type of data is forwarded to payroll processer?
How the payroll output is received from payroll processer?
Whether output is rechecked by client
Whether there are any QC checks at payroll processers entity
documented with client?
2 Payroll processed and salary booking matching?
3 Check tax working for few employees on test basis
4 Check F&F statements and tax deductions
5 Whether provision for employee benefits are made in books of account but
TDS not deduted? i.e. only provision in books of account
6 Reconciliation of salary payable as on 31.03.20xx
7 Whether PT slab for male / female are same? If not, PT deducted correctly.

8 Notice pay recovery correctly recorded as indirect income

AS-15 Accounting for Retirement Benefits In the Financials Statement YES
of Employer
9 i)Whether payments under defined contribution plan like provident fund
and family pension fund are charged to Profit & Loss Account
i) Whether provision made for Gratuity?
ii) Whether provision made for Leave Encashment?
iii) Whether the calculations are certified by the Actuary or Valuer and
whether the provisions are made based on the said calculaton.
iv) Whether Legal opinion obtained for applicability of retirement benefits
like gratuity etc.
10 Whether gratuity trust has been formed for gratuity contribution payment?
11 Whether gratuity contribution paid to trust? If not, the to whome
12 contribution
Whether givenliability worked out by insurance company / acturial
gratuity
valuer is matching with books of account?
Conclusion :

Prepared by : Date : 01/01/2017

Article assistant

Prepared by : Date : 01/01/2017

CA. Tushar Zagade

Prepared by : Date : 01/01/2017

CA. Shreedhar Pathak
Annexure. No. : 19
Misc. Working Papers

Sr. No. Particulars Yes / No / Data / Document Conclusion / Answer

N.A. obtained of the checklist

1 Query Sheet & Responses

Whether responses from client received for all interim audit queries?
Whether responses from client received for all final audit queries?
Any query pending for partner's attention?
Any query requires attention to notes to accounts?
Merge all interim & final audit queries

2 Final Trial Balance

Whether final TB received from client? Take signed copy from client
Whether final tally backup (after adjustment) kept at server? There should be
only one tally backup

AS-1 Disclosure of Accounting Policies YES

a Whether following fundamental accounting assumption are followed ?
i) Going Concern Concept.
ii) Consistency in Accounting Policies.
iii) Accrual basis of preparing Financial Statement.
b If Answer is NO whether disclosure has been made for same.
c Is there any change in accounting policies?
eg : Provision for Gratuity / Warranties/ Employee benefits, Depreciation
policy, Tax
provisions etc. If yes, give details
i) Whether it has material effect on current period?
If Yes, whether Disclosed with quantification
If NO, whether disclosed the fact.
ii) Whether it has material effect in later period?
If Yes, whether Disclosed.
AS-3 Cash Flow Statement Yes
a Whether the Enterprise is -
i) Listed Company
ii) Business enterprise having turnover exceeding Rs. 50 Crore
iii) If Yes, to any of above is cash flow statement is prepared under Indiect
Method.
iv) Is necessary reference of cash flow statement made in Audit Report.

AS-4 Contingencies and Events Occurring after Balance Sheet date YES

a Are contingent liabilities are disclosed in accounts by way of notes as to its

amount,
nature and uncertainties which may affect the future?
Contingent liabilities can be on account of
Bank guarantee
Any other Guarantee given
Commitment of capital account
b Have you ascertained that no contingent gains are recognized as income?

c Whether inquired about events occurred after balance sheet date?

Specially to check -
i) Claims settled after Balance Sheet date, third party / Govt claims
including Duty Draw Back claims
If yes, give the date of application & date of claim settlement
d Whether any adjustments required to be made in accounts, relating thereto?

i) If yes, whether adjustment is made?

ii) If not made, whether disclosed with quantification?
AS-5 Net profit / loss for the period, prior period items & change in YES
accounting policies
a Whether any of the following transaction/event taken place during the year

i) Write down/back of inventories?

ii) Restructuring Cost?
iii) Disposal of Fixed Assets?
iv) Disposal of long-term investments?
v) Legislative changes having retrospective application?
vi) Litigation Settlement?
vii) Reversal of Provisions?
b If yes, are the same disclosed separately or by way of note?
c Whether you come across any extraordinary item of income or expense
clearly distinct from ordinary activities of the enterprise?
d Have you come across any income or expense, which has arisen due to error
or omission in the preparation of financial statement of one or more prior
periods?
e If yes to either c or d, have the amount for each item disclosed separately in
Profit and Loss A/C in the manner that its impact on current profit/loss can
be perceived?
g Whether the enterprise has revised any accounting policies?
i) If yes, have you ensured that the change is required to be made because:

- Of statute or For compliance with AS

h If the change in accounting policy has a material effect, whether such change
is quantified so as to reflect the effect of such change?
i If change in accounting policy, which is material and is not ascertainable
whether such fact is disclosed in notes?
AS-6 Depreciation Accounting YES
a Which method of depreciation is followed by the enterprise:
i) Straight line method?
ii) Written down value method?
iii) Any other method?
b Is the method of providing depreciation changed during the year?
i) If yes, whether depreciation as per new method recalculated
retrospectively?
ii) If yes, amount of depreciationupto the end of last financial year, as per old

depreciation policy & as per new depreciation policy.

iii) Amount of depreciation for the year
c Whether any Revaluation of Assets done? If yes, as per the requirements of
Part II of Schedule VI to the Companies Act,depreciation to be provided on
the total book value of the fixed assets (including the increased amount as a
result of revaluation) in the Profit and Loss Account of the relevant period,
and thereafter an amount equivalent to the additional depreciation be
transferred from the Revaluation Reserve. Such transfer from Revaluation
Reserve should be shown in the Profit and Loss Account separately and an
appropriate note by way of disclosure should be made.

AS-7 Accounting for Contruction Contracts YES

a Is the enterprise involved in -
i) Contracts for construction of dams, buildings, roads, ships, refineries,
pipeline?
 ii) Contracts for the rendering of services, directly related to the construction
of the asset?
b How many contracts at the year end are of -
i) Fixed Price Contracts?
ii) Cost Plus Contracts?
c Are the following cost considered as direct cost to the contract cost?
i) Site labour cost?
ii) Material costs used in construction?
iii) Depreciation of machinery used for the contract?
iv) Cost of moving machinery and materials to and from contract site?
v) Cost of hiring machinery for the contract?
vi) Cost of design/technical assistance directly related to contract?
vii) Claims from third party relating to contract?
viii) Cost Plus Contracts?
ix) Estimated cost of
- Rectification?
- Guarantee, including warranty costs?
d Is contract revenue in case of fixed price contract or cost plus contract
recognized using the percentage of completion method?
e Whether expected loss (when contract cost exceeds contract revenue)
recognized as an expense, disregarding whether or not work has commenced
on the contract or stage of completion of contract activity?
f Have the following been disclosed in the financial statements:
i) Amount of contract revenue recognized as income?
ii) The methods used to determine contract revenue?
iii) The method used to determine the stage of completion of contract-in-
progress?
iv) The aggregate amount of cost incurred and recognized profits/losses up to
the
reporting date?
v) The amount of advances received?
vi) The amount of retentions?
g Valuation of WIP under Percentage of completion method, be worked out as
per
attached format -
 AS-11 Accounting for effects of changes in foreign exchange rates YES

a Whether cash flows arising from transaction in a foreign currency and the
translation of cash flow of a foreign operation in cash flow statement is
presented as per AS-3?
b Whether exchange differences arising from foreign borrowings to the extent
that they are regarded as an adjustment to interest cost is presented as per AS-
16?
c Whether the initial transaction is recorded at:
i) Transaction date?
ii) Average rate of week or month if more transactions?
d Whether exchange differences arising on a monetary item that forms a net
investment in a non-integral foreign operation is accumulated in a foreign
currency transaction reserve in the financial statements?
e On disposal of the net investment in non-integral foreign operation, is the
accumulated foreign currency transaction reserve recognised as income or an
expense in the profit & loss statement?
f Is the liability or asset outstanding at the reporting date converted using the
exchange rate prevailing on that date?
g Foreign exchange gain loss statement to be verified. Rates for foreign
exchange can
be verified on following site-
- RBI

- XE- universal converter

- oanda
h The ledger account in Indian currency to be supported with ledger account in
foreign
currency.
For Chart refer Sch& formats- Point 8
i Effect of foreign exchange gain loss in case of Long term assets / Liability. FE gain loss on
long termasset liability.doc
Refer amendment w.e.f 01st April, 2011.

AS-12 Accounting for Government Grants YES

a Government grants can be in the nature of Subsidies, Cash incentives, Duty
drawback etc
b How are the Government grants and grants received from similar bodies, in
financial statements presented for the following:
i) Fixed Assets
c Whether revenue is grant shown under other income? or deducted from
related expenses?
d Whether refund of Government grant treated as extraordinary item in
Financial Statement?
e Whether compilation has been made with the conditions attached to the
grant?
f Whether inquired about Government grants received after balance sheet date?
If received, give details of application, date of grant receipt & details of grant.

g Whether governmet subsidy received by company credited to reserve

account?
h Accounting of Government grant -
i) Government grants related to specific fixed assets -
as a deduction from the gross value of the assets concerned in arriving at their
book value. may be treated as deferred income which should be recognised in
the profit and loss statement.
ii) Government grants related to revenue - be shown separately under ‘other
income’ or deducted in reporting the related expense
iii) Government grants of the nature of promoters’ contribution - should be
credited to capital reserve and treated as a part of shareholders’ funds.

AS-14 Accounting for Amalgamation YES

a Whether different treatment is prescribed in scheme as compared to the
requirements of AS?
i) If Yes, whether following disclosure made -
a) Description of the accounting treatment given to the reserves and the
reasons for following the treatment different from that prescribed in the
statement.
b) The financial effect, if any arising due to such deviation.
b Whether following disclosures made in first financial statement following the
amalgamation:
i) Name and general nature of business of amalgamating companies?
ii) Effective date of amalgamation?
iii) Method of accounting used to reflect amalgamation?
iv) particulars of the scheme sanctioned under a statute.
iii) Method of accounting used to reflect amalgamation?
c For amalgamations accounted for under the pooling of interests method, the
following additional disclosures should be made in the first financial
statements following the amalgamation: Accounting for Amalgamations 159

i) description and number of shares issued, together with the percentage of

each company’s equity shares exchanged to effect the amalgamation;

ii) the amount of any difference between the consideration and the value of
net identifiable assets acquired, and the treatment thereof.
d For amalgamations accounted for under the purchase method, the following
additional disclosures should be made in the first financial statements
following the amalgamation:
i) consideration for the amalgamation and a description of the consideration
paid or contingently payable; and
ii) the amount of any difference between the consideration and the value of
net identifiable assets acquired, and the treatment thereof including the period
of amortisation of any goodwill arising on amalgamation.

e Amalgamation after the Balance Sheet Date

i)When an amalgamation is effected after the balance sheet date but before
the issuance of the financial statements of either party to the amalgamation,
disclosure should be made in accordance with AS
ii) ‘Contingencies and Events Occurring After the Balance Sheet Date’, but
the amalgamation should not be incorporated in the financial statements. In
certain circumstances, the amalgamation may also provide additional
information affecting the financial

f Following points to be verified, in case of Amalgamation

i) Date of Balance Sheet of Amalgamating Company's should be prior to the
date of single Balance Sheet after Amalgamation.
ii) Date of Single Balance sheet should be the date, after the date of sanction /
approval from the court.
iii) Balance Sheet of amalgamated Companies should be the audited as on the
date of Amalgamation.
AS-19 Leases YES
a Whether assets has been taken on lease-
i) Finance lease?
ii) Operating lease?
b If asset taken on finance lease:
i) Is the leased asset recognised as asset equal to the fair value?
 ii) If the fair value exceeds the present value of the minimum lease payments,
is the asset recorded at the present value of the minimum lease payments?

c If asset given on finance lease:

i) Is the amount shown as a receivable equal to the net investment in the
lease?
ii) If commission and legal fees incurred :
- Written off immediately?
- Allocated against the finance income over the lease term?
d If the asset given on operating lease:
i) Is the asset shown as Fixed Asset?
ii)Is the income recognised on a straight line basis in the statement of Profit
& Loss?
iii) Is depreciation provided at the rates for which similar assets are
depreciated?
iv) Is disclosure in financial statements made as required by AS?
e Following details required ( Separatly for each type of lease)
Location
Date ofAgreement
Period of Agreement
When Cancellable?
Amount of Rent/ Lease ( Debited to P&L)
AS-20 Earning Per Share YES
a Whether the company is -
i) Listed?
ii) Required by statute (Sch. VI) or choosing to disclose earnings per share?

iii) If Yes, whether disclosure has been made?

b If there is any fresh Equity issue made during the year, is weighted average
number of equity shares outstanding during the period considered for working
basic equity per share?
c Whether the enterprise during the year or after year end but before approval
of account by the Board of Directors.
i) Issued Bonus Shares?
ii) Issued Rights issue having a bonus issue?
iii) If yes to above, is the basic equity per share for current period as well as
all
reported periods worked out after considering the above change ?
AS-21 Consolidated Financial Statements NO
a Whether the enterprise required to prepare and present Consolidated Financial
Statement?
i) If Yes, whether the consolidated financial statements prepared
b Whether the financial statements of parent and subsidiaries drawn up to the
same reporting date?
i) If No, whether the difference between reporting dates are not more than six
months?
In case of difference, to mention the reporating dates, of both Companies

c Are accounting policies uniform of parent and subsidiaries in preparing

consolidated financial statements?
i) If no, is the fact disclosed together with proportions of items in the
Consolidated Financial Statement to which the different accounting policies
applied?
 AS-23 Accounting for Investment in Associates in Consolidated financial NO
statement
a Whether the enterprise required to prepare consolidated financial statement?

i) If Yes, does the enterprise have investments in a company, considered as an

associate?
ii) If yes, to (i) above, is associate also considered in consolidated financial
statement?
b Whether the enterprise worked out goodwill/capital reserve arising at the time
of acquisition?
AS-24 Discontining Operations YES
a Is a component of the enterprise that represents a separate major line of
business or geographical area of operations and that can be distinguished
operationally and for financial reporting purposes been decided to be:

i) Sold off substantially in its entirety?

ii) Sold off in piecemeal?
iii) Terminated by abandonment?
b Whether separate disclosure made for each discontinuing operation?
c Are prior period figures restated to segregate assets, liabilities, revenue,
expenses and cash flow of continuing and discontinuing operations as
disclosed in current year?
d Whether the discontinued operation has material effect on going concern
principal of oragnisation? if yes, details to be provided?
AS-25 Interim Financial Reporting YES
a AS 25 does not require any enterprise to present interim financial statement.
It is applicable only if enterprise is required or elect to prepare the statement.

a Whether the enterprise required to prepare and present interim financial

report?
i) If yes, has the enterprise prepared and presented information for the
interim date as per the form and content as applicable to annual complete set
of financial statement unless otherwise required in a different form as per
statute or as per regulatory body governing the enterprise?

b Are the following information, if material and not disclosed elsewhere in

interim financial statements been disclosed by way of notes:
- A statement that the same accounting policies are followed or if changed a
description of the.
- Nature and effect of the change?
AS-27 Financial Reporting of Interest in Joint Venture NO
a Whether the enterprise required to prepare consolidated financial statement?

i) If yes to (a) above, does the enterprise have investments in a joint venture
entity?
ii) If yes to (i) above, is joint venture entity also considered in the
consolidated financial statements?
b Has the venturer in its consolidated financial statements separately disclosed
goodwill or capital reserve, considering net asset position of the jointly
controlled entity at the date on which interest is acquired?
c Has the venturer disclosed in its separate financial statement the aggregate
amounts related to its interest in the jointly controlled entitles?

d Has the venturer in its separate financial statement as well as the consolidated
financial statements disclosed:
i) List of all joint venturers and description of interest in significant joint
venturers?
ii) In case of jointly controlled entitles -
a) The proportion of ownership interest?
b) Name and country of incorporation or residence?
e Ledger account of the organisation in the books of JV to be attached.
Details Required-
Balance of JV in the books of organistion.
Balance of organisation in the books of JV.
AS- 31 Financial Instruments Presentation YES
a This standard is mandatory in respects of accounting period commencing on
or after 01/04/2011 to all enterprises.
b The principles in this Standard complement the principles for recognising and
measuring financial assets and financial liabilities.
c A Financial asset is -
i) Cash
ii) an equity instrument of another entity
iii) a contractual right
iv) to receive cash or another financial asset from another entity
v) to exchange financial assets or financial liabilities with another entity
d A Financial liability is -
i) a contractual obligation
ii) to deliver cash or another financial asset to another entity
iii) to exchange financial assets or financial liabilities with another entity
under conditions that are potentially unfavourable to the entity
e In this Standard, ‘entity’ includes individuals, partnerships, incorporated
bodies, trusts and government agencies.
Conclusion :

Prepared by : Date : 01/01/2017

Article assistant

Prepared by : Date : 01/01/2017

CA. Tushar Zagade

Prepared by : Date : 01/01/2017

CA. Shreedhar Pathak
SA 220 Quality control for an audit of financial statements
SA 260 Communication with those charged with governance
Communicating deficiencies in internal control with those charged with governance and
SA 265
management

Name of Audit Assistant / Manager

Name of Reviewer
Period Covered
Carry forward points

Sr. No. Audit procedure Yes / No / Remarks

NA

1 Audit planning meeting conducted on (date)

2 Interim audit requirements given to client (date)
3 Interim audit period from ****** to *******
4 Interim audit report dated on *******
5 Visit engagement senior manager
6 Visit of audit engagement partner
7 Final audit period from ******* to ********
8 Visit engagement senior manager
9 Visit of audit engagement partner

10 Final audit observation communication by audit manager (email

dated)
SA 240 The Auditor’s Responsibilities Relating To Fraud In An Audit Of Financial Statements

Name of Audit Assistant / Manager

Name of Reviewer
Period Covered
Carry forward points

Sr. No. Audit procedure Yes / No / Remarks

NA

1 Have you assessed risks of material misstatement in the financial

statements due to fraud?
2 Have you evaluated the design of internal checks and control
mechanisms placed by the management and recorded the
weaknesses in them?

3 Are there loopholes in the control environment where senior level

of management can or does override control procedures?

4 Whether inquiries have been made with the management

regarding the following:
(i) The managements assessments to the risk relating to the
material misstatements may be due to fraud is done on a
satisfactory basis as per the size of the entity.

(ii) the accounting and internal control systems management has

put in place to address such risk.
7 Have the following items been taken into consideration to
mitigate the risk of fraud in the financial statements:
(i) have we identified the transactions that are improperly or
incompletely recorded?
(ii) is there any unsupported or unauthorised transaction?
(iii) are there any last minute adjustments that significantly affects
the financial results?
(iv) are there some cases where the evidence is missing which are
of significant importance?
(v) are there any unusual discrepancies between entity’s records
and confirmation replies?
(vi) is there any unusual relationship between the auditor and the
management?
 (vii) is the management relying on one person for major
accounting & financing activity?
(viii) are there inconsistent, vague, or implausible responses from
the management or employees arising from inquiries or analytical
procedures?

(ix) are there any unusual delays by the entity in providing

requested information?
8 Are there any instances of misapplication of accounting policies
such as in revenue recognition, inventory quantities, non-standard
journal entries etc.? [Append a list]

9 Have you detected any frauds arising out of:

(i) Manipulation/falsification/alteration of record or documents?

(ii) Misappropriation of assets?

(iii) Suppression or omission of the effects of transaction from
records or documents?
(iv) Misapplication of accounting policies?
10 If the company has multiple locations, sites, branches have you
visited such other location?
11 Have you communicated your audit findings in a timely manner to
the management about fraud or error including observation of red
flags?

12 Has there been a proper disclosure of such fraud or error in the

financial statement/auditors report as appropriate?

13 Reference IFC testing

14 Interim audit control area
SA 320 Materiality In Planning And Performing An Audit
SA 530 Audit Sampling

Name of Audit Assistant / Manager

Name of Reviewer
Period Covered
Carry forward points

Sr. No. Audit procedure Yes / No / Remarks

NA

1 During audit planning, have you considered the materiality

for various areas, account balances and classes of transactions
to decide

a) what items to examine?

b) audit procedures to be carried out-selection of samples?
2 Have you considered the following points while establishing
materiality in point (1) above:
(i) quantitative factors that will affect a particular account balance
or class of transactions individually or cumulatively?
(ii) qualitative factors such as proper and adequate disclosure of
accounting policies, legal and regulatory requirements, application
of appropriate accounting principles or adequate disclosure of
other items?

3 While conducting the audit, have you considered materiality

of the data and its relationship with audit risk? [Prepare a
note on establishing levels of materiality for various account
balances and classes of transactions as per the audit
programme.]
4 Have you ensured that the audit plan for each area has
adequate coverage where acceptable materiality level is low
and/or you have extended the tests of control?

5 Have you considered revising materiality levels set prior to

period end or before the audit on noticing evidence/reasons to
do the same?

6 Has the audit uncovered misstatements that need not be

adjusted due to them not being material? [Append a note of
such misstatements.]

7 In carrying out analytical procedures, have you considered

materiality while determining exceptions?
8 In cases where the uncorrected misstatement reached
materiality level, have you informed the management to
adjust the financial information?

9 If the management is not willing to adjust the financial

statements, have you considered qualifying your report?
SA 402 Audit Considerations Relating To An Entity Using A Service Organisation

Name of Audit Assistant / Manager

Name of Reviewer
Period Covered
Carry forward points

Sr. No. Audit procedure Yes / No / Remarks

NA

1 Obtain a contract of services

2 How and which type of data is forwarded to payroll processer?
3 How the payroll output is received from payroll processer?
4 Whether output is rechecked by client
5 Whether there are any QC checks at payroll processers entity
documented with client?

(a) Obtaining a Type 1 or Type 2 report, if available;

(b) Contacting the service organisation, through the user entity, to
obtain specific
(c) Visiting the information;
service organisation and performing procedures
that
(d) Using anotherthe
will provide necessary
auditor information
to perform aboutthat
procedures the will
relevant
provide
the necessary information about the relevant controls at the
service organisation.
3 Using a Type 1 or Type 2 Report to Support the User
Auditor’s Understanding of the Service Organisation

While Determining the sufficiency and appropriateness of the

audit evidence provided by a Type 1 or Type 2 report, the user
auditor shall be satisfied as to:

(a) The service auditor’s professional competence (except where

the service auditor is a member of the Institute of Chartered
Accountants of India) and independence from the service
(b) The adequacy
organisation; and of the standards under which the Type 1 or Type
2 report was issued.
(c) Determine whether complementary user entity controls
identified by the service organisation are relevant to the user
entity and, if so, obtain an understanding of whether the user
entity has designed and implemented such controls.

4 Responding to the Assessed Risks of Material Misstatement

(a) Determine whether sufficient appropriate audit evidence

concerning the relevant financial statement assertions is available
from records held at the user entity; and, if not,

(b) Perform further audit procedures to obtain sufficient

appropriate audit evidence or use another auditor to perform those
procedures at the service organisation on the user auditor’s behalf.
5 Tests of Controls
When the user auditor’s risk assessment includes an expectation
that controls at the service organisation are operating effectively,
the user auditor shall obtain audit evidence about the operating
effectiveness of those controls from one or more of the following
procedures:
(a) Obtaining a Type 2 report, if available;
(b) Performing appropriate tests of controls at the service
organisation; or
(c) Using another auditor to perform tests of controls at the
service organisation on behalf of the user auditor.
SA 560 Subsequent Events

Name of Audit Assistant / Manager

Name of Reviewer
Period Covered
Carry forward points

Sr. No. Audit procedure Yes / No / Remarks

NA

1 Whether the subsequent events, which may require the

adjustment in the financial statements identified? (Materiality
can be the guiding factor here.)
2 Whether the procedures to identify events that may require
adjustment of, or disclosure in, the financial statements
performed? Such procedures ordinarily include the following:

(i) Inquiring of management as to whether any subsequent events

have occurred after the balance sheet date which might affect the
financial statements.

(ii) Reading minutes of the meetings of shareholders, the board of

directors and audit and executive committees held after the
balance sheet date and inquiring about matters discussed at
meetings for which minutes are not yet recorded

(iii) Reading the entity’s latest subsequent interim financial

statements.
3 On the basis of above identification whether any adjustment
made? If not, whether the audit report adequately discloses
the same?

4 Whether written representation has been obtained from those

charged with governance that all subsequent events has been
disclosed adequately?
5 In case of subsequent events, whether following are
performed?
(i) discussion of the matter with management & those charged
with governance
(ii) Determine FS need amendment
(iii) Inquire how management intends to address the matter in FS

(iv) Carry out the audit procedures necessary

(v) Issue new audit report (in such case date should not be earlier
than the date of approval of amendmended FS)
(vi) Does comments has been included as per SAs 705 & 706 in
case disagreement with management
6 In case the management has not accounted for such events
that the auditor believed should have been accounted for,
whether expressing a qualified opinion or an adverse opinion
as appropriate has been considered?

List of events to be included

SA 580 Written Representations

Name of Audit Assistant / Manager

Name of Reviewer
Period Covered
Carry forward points

Sr. No. Audit procedure Yes / No / Remarks

NA

1 Whether a representation was obtained from the management

regarding the selection, consistent application of accounting
policies and acknowledging their responsibility in the
preparation of financial statements?

2 Whether representation obtained includes that management

has provided access to all information as agreed & all
transactions have been recorded in the financial statement?

3 Whether the representation dated before or on the date of the

audit report?
4 Whether the representation is addressed to the auditor and is
appropriately dated and signed by the members of the
management who’re primarily responsible for the entity & its
financial aspects?

5 Whether written Management Representation Letter has

been obtained for matters material to financial information,
either individually or collectively, when other sufficient
appropriate audit evidence cannot reasonably be expected to
exist or as corroborative evidence or for matters which are
principally one of intention of the management?
6 Whether written representations are inconsistent with other
audit evidence ? If yes reconsider the assessment, integrity,
ethical values and shall determine the effect that this may
have on reliability

7 Where Management Representations have been obtained as

Audit Evidence, whether the auditor has:
(i) Obtained corroborative audit evidence from sources inside or
outside the entity;

(ii) Evaluated whether the representations made by management

appear reasonable and consistent with other audit evidence
obtained, including other representations.

(iii) Considered whether the individuals making the

representations can be expected to be well informed on the matter

(iv) Ensure that representations do not substitute other audit

evidence which could reasonably expected to be available.
8 Whether the management has refused to provide
representations on any matter that is considered necessary &
whether appropriate actions have been taken?

9 Was a disclaimer opinion considered in case (a)

representations are not sufficient (b) management does not
provide the same?

10 Whether representation by management is contradicted by

other evidence? Whether the auditor has examined the
circumstances and, when necessary, reconsidered the
reliability of other representations made by management?

11 Whether the Management Representations have been

documented as working papers?
Annexure. No. : 20
Related Party

Sr. No. Particulars Yes / No / Data / Conclusion /

N.A. Document Answer of the
obtained checklist

AS-18 Related Party Disclosure YES

1 Whether the company is a level I enterprise as per the criteria for classification of enterprise?

i) If yes, is related party disclosures made in financial statements?

2 Whether the following been listed out and disclosure is made for the same -
i) Holding company/ies?
ii) Subsidiary company/ies?
iii) Fellow subsidiary/ies?
iv) Person able to appoint or remove all or majority of directors of the reporting enterprise or
vice versa?
v) Person who has substantial interest in voting power (20% or more) and power to direct by
statute or agreement the financial and/or operating policies of the
reporting enterprise and vice versa?
3 Name of all related parties to be provided here -
4 Whether reconciliations of all group companies have been checked?
If yes, whether the same matches?
SA 505
External Confirmation
Sr. No. Audit Procedures Yes / No / Data / Conclusion /
N.A. Document Answer of the
obtained checklist
1 Whether external confirmation have been obtained?
2 What is the level of materiality for external confirmations?
(In Rs. *********)
3 Whether selection of parties from whom confirmations have been asked for is done by us?

4 Balance confirmation statistics

Confimation analysis:
Date of balances confirmed.
Number of confirmations called for.
Number of confirmations received.
Value of confirmations sent.
Value of confirmations received.
Positive confirmations received
Negative confirmations received
Whether a reconciliation statements are prepared for the confirmation received

5 In case of any discrepancies observed in external confirmations, has the management

reconciled the differences?

Conclusion :

Prepared by : Date : 01/01/2017

Article assistant

Prepared by : Date : 01/01/2017

CA. Tushar Zagade

Prepared by : Date : 01/01/2017

CA. Shreedhar Pathak
SA 550
Related Parties

Name of Audit Assistant / Manager

Name of Reviewer
Period Covered
Carry forward points

Objective
To ensure adherance to existing legal framework for disclosure of related party transactions:
AS - 18 Yes / No
CARO Yes / No
Section 44AB Yes / No
Section 92E Yes / No

Sr. Audit Procedures Y/N/ Remarks

No. NA

1 Is audit evidence regarding the identification and disclosure of related parties

(as defined in AS 18) been obtained from the management in writing and duly
authenticated? [Append list.]

2 Have you reviewed information provided by the management and identified the
transactions with related parties? [Append list.]
3 Whether the transaction with related party is authorised and approved?
4 Is there any risk of material misstatement associated with a related party
transaction? If yes, what is the response to such a risk?
5 Inspect the underlying contracts or agreements if any and evaluate whether:

a They are for the related business

b Disclosure arrangements/transactions and are authorised
6 Have you carried out detailed audit procedures to verify the completeness of
information supplied by the management, such as:
a Detailed tests of transactions and balances?
b Review of minutes of the Board and share holder meetings?
c Review of large/unusual/year end transactions?
d Review of Income Tax Returns and information supplied to other regulatory
agencies?
e Review of loan receivables and payables and confirmations from banks? Is
there any guarantor relationship?
f Review of purchase or sale of investments?
g Review of share holder records to determine the name of principal share
holders from the share register?
h Enquiries as to the affiliation of directors and key management personnel,
officers with other entities?
7 Have you come across any unusual transactions that indicate the existence of
previously unidentified related parties? For example—
a Abnormal terms of trade, such as unusual prices, interest rates, guarantees, and
repayment terms?
b Those that lack an apparent logical business reason for their occurrence?
c Those in which substance differs from form?
d Those that are processed in an unusual manner?
e Those that are of high-volume or significant amounts with certain customers or
suppliers as compared with others?
f Rendition of services without receipt of provision of management services at
no charge?
8 Whether any of the above may result in disclaimer / qualify audit opinion
Annexure. No. : 21
Partner’s review Point

Review dates:

Sr. Particulars Yes / No / Reference to Specific Comments, If Any

No. N.A. Item
1
2
3
4
5
Conclusion :

Prepared by : Date : 01/01/2017

Article assistant

Prepared by : Date : 01/01/2017

CA. Tushar Zagade

Prepared by : Date : 01/01/2017

CA. Shreedhar Pathak
 Corporate Entities
Name of the company
Financial year
Applicabilit
Audit period
Type of Company SMC AS
Num
ber
1
Sr. Criteria For SMCs Amount Applicability 2
No.
1 Whether Equity or Debt Securities are Listed NO 3
or are in process of listing on any Stock
Exchange
2 Whether a Bank, Financial Institution or an NO 4
Insurance company
3 Turnover (excluding other income) NO 5

4 Borrowings (including Public Deposits) NO 6

5 Holding Or Subsidiry of A Non -SMC NO 7
company
9
10
11

12
13
14
15
16
17
18
19
20
21
22
23

24
25
26
27
28
29
30
31
32
 Applicability of accounting standards by ICAI
Particulars SMC

Disclosure of Accounting policies YES

Valuation of Inventories YES

Cash Flow Statements NO

Contingencies and Events Occuring After the Balance Sheet YES

Date
Net Profit or Loss for the Period,Prior Period Items and YES
Changes in Accounting policies
Depreciation Accounting YES
Construction Accounting YES

Revenue Recognition YES

Accounting for Fixed Assets YES
Accounting for the Effects of Changes in Foreign Exchange YES
Rates
Accounting for Government Grants YES
Accounting for Investments YES
Accounting for Amalgamation YES
Employee Benefits YES
Borrowing Costs YES
Segmental Reporting NO
Related Party Transactions YES
Accounting for Leases YES
Earning Per Share YES
Consolidated Financial Statements NO
Accounting for Taxes on income YES
Accounting for Investments in associates in Consolidated FS NO

Discontinuing Operations YES

Interim Financial Reporting YES
Intangible Assets YES
Financial Reporting of Intrests in Joint Ventures NO
Impairment of Assets YES
Provisions,Contingent Liabilities and Contingent Assets YES
Financial Instruments-Recognition & measurements YES
Financial Instruments-Presentation YES
Financial Instruments-Disclosure YES
Now CFS is applicable to every company
except small company defined under the
Companies Act, 2013
Name Of The Client :
Financial Year :
Period Covered :
Audit Duration :
Auditors : Natu & Pathak Chartered Accountants
Partner In Charge : CA. Shreedhar Pathak
Audit Senior :
Senior Article :
Junior Article :
Sr. Details Of Work Budgeted Actual
No. Assigned to No. of Hrs Dates Assigned to No. of Hrs . Date
1 Vouching & Checklist completion
2 GL Scrutiny & Checklist completion
3 Balance Sheet preparation
4 Query Discussion

Total 0 0