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Procedures for Audit of Companies

PROCEDURES:-

Last Date to file companies return is going to come and every Chartered Accountant is working on its Companies Audit procedures. But before starting our companies audit it is necessary for us to find out what are the procedures and important matters that we have to remember while proceeding with companies audit.

  1. Firstly, it is necessary for us to start vouching. Vouching help us to find any arithmetical mistake or if any bill was not properly accounted or if any voucher has been unaccounted .
  2. Secondly check for Bank Statement. Whether proper closing balance are been matched or not.
  3. Thirdly, go for Taxation matters. Now remember in case if the company is liable to take VAT credit then you must take a note that “Tax Invoice” should be properly mentioned on purchase bill. Or, in case if the company is liable to pay service tax then proper provisions and deposit of tax within due date or in case if payment is been date late then proper interest is been calculated correctly. Same procedure is for TDS.  Also remember, for service tax, TDS and VAT you should also get it matched with their respective return.
  4. Fourthly, take a note of entries done at the year end. Proper provisioning should be done at the year end for expenses due within this date and paid in next year. Also take a note of expenses done for more than one period and do take care that proper prepaid expenses is been accounted.
  5. Finally, you should maintain a record of your work for future references which will work as a part of Audit evidence.

Companies Audit

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Procedures for Audit of Companies

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