What are the steps to statutory audit?

What are the steps to statutory audit?

1) First you examine Documentary Evidences regarding appointment/reappointment of an Auditor. 2) Examine Last Year’s copy of Audited Balance sheet, profit & loss account , schedules, notes on accounts along with 3CA/3CB, 3CD & Audit Report. 3) Carefully Examine the internal control system of the company.

How do you do a statutory audit practically?

What Is The Process Of A Statutory Audit In India?

  1. Assets. The auditor should physically visit and verify the fixed assets.
  2. Inventories. The auditor must physically verify the inventories of the company.
  3. Loans.
  4. Deposits.
  5. Statutory Dues.
  6. Profit and Loss.
  7. Other Dues and Payments.
  8. Loan Usage.

What are the 7 steps in the audit process?

Audit Process

  1. Step 1: Planning. The auditor will review prior audits in your area and professional literature.
  2. Step 2: Notification.
  3. Step 3: Opening Meeting.
  4. Step 4: Fieldwork.
  5. Step 5: Report Drafting.
  6. Step 6: Management Response.
  7. Step 7: Closing Meeting.
  8. Step 8: Final Audit Report Distribution.
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What is statutory audit in practical auditing?

Meaning of a Statutory Audit A statutory audit is a legally required check of the accuracy of the financial statements and records of a company or government.

What are the checklist for statutory audit?

Check any expenditure of capital nature charge in revenue expenses. Check whether GST tax input claim on any expenses. Check such input claim in GST return in GSTR 3b. Identify the expenses which are disallowed under Income Tax Act, 1961.

What are the features of statutory audit?

Features of Statutory Audit (India)

  • Create and maintain an Audit Programme.
  • Prepare and maintain Audit Working Papers.
  • Mark the applicable and complied Accounting Standards and Audit and Assurance Standards for a company.
  • Extract the financial information required for statutory audit.

How do you do a statutory audit of manufacturing company?

Statutory Audit checklist for Manufacturing Company:

  1. Inventory Observation. As per most of the auditing standards require auditors to physically observe the company’s inventory count procedures and make their own independent tests of the physical count of inventory.
  2. Price Testing.
  3. Control Testing.
  4. Inventory Reserve Testing.
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How do you audit sales in statutory audit?

6 Steps to Conducting a Sales Audit

  1. Evaluate your sales process or road map.
  2. Review your existing tools and assets.
  3. Review your existing content and sales resources.
  4. Determine the quality of your current leads.
  5. Assess your current reporting.
  6. Evaluate your sales synergy.

What is the role of statutory auditor?

The purpose of a statutory audit is the same as the purpose of any other audit – to determine whether an organization is providing a fair and accurate representation of its financial position by examining information such as bank balances, bookkeeping records and financial transactions.