What are the steps for statutory audit?
Table of Contents
What are the steps for statutory audit?
What Is The Process Of A Statutory Audit In India?
- Assets. The auditor should physically visit and verify the fixed assets.
- Inventories. The auditor must physically verify the inventories of the company.
- Statutory Dues.
- Profit and Loss.
- Other Dues and Payments.
- Loan Usage.
How do you do a statutory audit of a company?
Given below are theimportant areas of consideration one has to look into while conducting the statutory audit of a company:
- Research the control environment of the organisation.
- Testing of Internal Controls.
- Audit of Balance Sheet.
- Audit of Profit & Loss Account.
- Audit of GST.
- Audit of TDS.
- Some other important checks:
What is an IT audit process?
An Information Technology audit is the examination and evaluation of an organization’s information technology infrastructure, applications, data use and management, policies, procedures and operational processes against recognized standards or established policies.
What is included in an IT Audit?
An IT audit is the examination and evaluation of an organization’s information technology infrastructure, policies and operations. IT auditors examine not only physical security controls, but also overall business and financial controls that involve information technology systems.
Who performs statutory audit?
Who can conduct a statutory audit? As per the law, only an independent chartered accountant, or a chartered accountant firm, or limited liability partnership firm (LLP) with majority of partners practicing in India are qualified for appointment as an auditor of a company.
What are the documents required for statutory audit?
- Obtain a Copy of TDS challans about liability outstanding as of March 31st of the year and previous year liability.
- Obtain TDS return form 24Q, 26Q, 27Q and 27EQ for all the quarters – Consolidated file from Traces.
- Calculate TDS liability (in total) and its payment by the 7th of every month.
How do you conduct information system audit?
Process of Information System Audit (4 Steps)
- Measuring vulnerability of information system: The first step in the process of information system audit is the identification of the vulnerability of each application.
- Identification of sources of threat:
- Identification of high risk points:
- Check for computer abuse:
What is the scope of IT audit?
Scope generally refers to the depth and breadth of the audit, which is in turn determined by the objectives or what the audit is designed to accomplish. The two broad objectives for any audit are control adequacy and control effectiveness*.
What is the difference between an audit and a statutory audit?
An audit is an examination of records held by an organization, business, government entity, or individual, which involves the analysis of financial records or other areas. A statutory audit is a legally required review of the accuracy of a company’s or government’s financial statements and records.
Who can appoint a statutory auditor for a company?
However, the statutory requirements can at federal, state or municipal level. The shareholders in the Annual General Meeting (AGM) of the company, appoint a person as statutory auditor. The shareholders cannot vouch or verify each transaction of the books of accounts.
What are test controls in statutory audit?
Test Controls: In the statutory audit process, evaluation of corporate procedures by a specialist conducting regulatory audit and also operating mechanisms for fraud or prevention of error are included. Then they agree with industrial practises and standard set by the regulators.
Do international companies need statutory audits?
It is also common for international companies to have some foreign governments that require access to the results of a statutory audit. For example, assume that XYZ Corp is based in the United States but does business regularly and operates branches in Europe.