INFORMATION TO BE KEPT READY FOR AUDIT/Tax Audit
INFORMATION TO BE KEPT READY FOR AUDIT/Tax Audit
A. Statutory Audit (In case of Companies)/Audit in case of non corporate entities. :
1) Detail Trial Balance (with Opening, Transactions and closing
2) Vouchers should be kept ready with proper authorization and numbered.
3) Required provisions should be made. e.g. Telephone, Electricity etc.
4) T.D.S. Compliance should be reviewed by the management.
5) Prepaid expenses should be adjusted.
6) Quantitative records as per the books should be tallied with Excise/Vat records.
7) Stock records, purchases should be tallied with Inward Register.
8) Quantity of Closing Stock should be tallied with statement submitted to Bank.
9) Basis of valuation for Raw Material, Stores to be made available with purchase bill. In case of Finished Goods and Work in Progress (WIP), working of cost and its comparison with Net Realizable Value (NRV) should be kept ready.
10) Investment Confirmation should be kept ready.
11) Bank Balance Confirmations should be kept ready. In Bank Reconciliation Statement (BRS), no entry should be shown as amount debited or credited by bank.
12) Loan Balance confirmation. Provision for interest should be made up to 31.03.2010
13) Cash balance Certificate.
14) Fixed Deposit with banks –Confirmation is required Provision for accrued interest should be made.
15) Advances to suppliers should be scrutinized by the management. If required, provisions should be made.
16) Balances of Debtors and Creditors should be confirmed (at least 60 % of the balances should be got confirmed )
17) Inter Company Balances should be tallied.
18) List of share Holders, Directors and registers u/s. 301 of the Companies Act, 1956.
19) Minutes Book of Board Meetings.
20) Status of Incometax,VAT, Excise,Service Tax assessment should be provided
21) In case of Fixed Assets,
a. Details of Addition together with date and copies of bills
b. Provision for Depreciation should be made as per the previous year except in case there is change in accounting policy.
22) In case of Companies, for Gratuity and Leave Encashment – Actuarial Valuation Report should be obtained.
B. Tax Audit/ Income Tax Return (In case of Companies/Partnership Firm/Individuals)
1) Depreciation Statement as per the Income Tax Rules
2) Details of Cash payment in excess of twenty thousand should be checked.
3) In case of Companies, for Income Tax Return filing the Digital Signature is compulsory.( It should be for all entities ?)
4) T.D.S. (Debit/Credit) is to be reconciled and copies of challans is to be provided.
5) List of Relatives. Relatives of partners/ Directors along with nature of relation ship.
6) In case of Companies, list of persons who are beneficial owners of share holding not less than 10% of the voting power at any time during the previous year.
7) Donation receipts, if made.
8) For Loan accounts, the details of parties like PAN No., Address is to be provided in the proforma.
9) TDS Certificates
10) Details of Investments
11) Details of Assessment Status should be provided
12) Gross Profit – Variation if any with earlier year – Reasons for variation
13) Payments disallowable under section 43B of the Income Tax Act, 1961 – whether paid before due date of return.
14) Expenses – Commission – Travelling etc.: whether proper evidence available.
15) Cash Credits, if any and evidences like confirmation, PAN No. source, bank pass book etc. whether available.
16) Details of prior period adjustments.
