1. Fixed Assests Audit Procedures

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  a) Obtaining an understanding of the internal control over property, plant, and equipment and check effectiveness of control on PPE during         vouching process considering various assertions 

  b) Check  Title deeds in respect of Immovable Assets & Other ownership documents to ensure  right over recorded Property ,plant & Equipment.

  c) Verify whether cost of an item of property, plant and equipment includes the initial estimate of the costs of dismantling 

  d) Verify that, depreciation have been calculated based on life of assets specified in Schedule II of the companies Act, 2013.

  e) Verify that fixed asset register has been properly updated

  f)  Verity the Title deed in respect of free hold land.

 g)  Verify whether there is any capital commitment against land if any the same has to be disclosed in notes to accounts under contingency,            capital commitment

 h)  Verify the impairment loss in case of old CWIP.. 

 i)  Check whether intangible asset with indefinite useful life have been tested for impairment annually

 j)   Verify that amortization of Intangible assets have been made as per applicable  Ind AS or AS .

 k)  Ensure that no amortisation has been charged on intangible assets with indefinite useful life.

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2. Current Assets Audit Procedures 

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a)  Verify the agreement terms & conditions and nature of security deposit.

b)  Vouch the bills for ascertain Management's assertion.

c)  Study the Loan agreement with borrower & 26AS for interest accrued but not due calculation

d)  Check the MEIS/SEIS certificates for validity period.

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3. Purchases  

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      Documents Required : 1. Purchase Register 

                                             2.  Purchase Requistion 

                                             3.  Purchase Invoices 

                                             4.  GRN /NRGPIN /NRGPOUT 

                                             5.   Purchase Orders Details 

         

 Audit Procedure      : 

 1.Ensure that recognition of purchases at the time of transfer of significant risks and rewards of ownership

 2.Examine selected entries in the purchase journal and check it with related purchase invoices, receipt records,purchase orders and other   supporitng 

 3. Examine selected entries of purchase returns with reference to the goods returned notes, debit notes and entries in the suppliers' accounts.

 4.  In case of imports, examine bill of lading, bill of enrty, freight inwards and other custom documents. 

 5.  Whether the imports are on CIF basis and/or FOB basis and these transactions have been properly accounted it.

 6.   Check the system of vendor selection , Quotation, Issue of PO

 7.  Review of variance in rates of particular item purchased on different dates in the period under review 

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4. Expenses Audit Procedures

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 1) CSR (Corporate Social Responsibility)

a).Whether CSR applicability has been checked in current year  by applying limit check on  the immediately  preceding Financial Year's Net Worth or Net profit or Turnover.
b)Check in case of listed company  CSR Board consist of One Independent Director.
c)Check amount spend in every financial year, at least two per cent. of the average net profits of the company made during the three immediately preceding financial years .
d)Ensure if company fails to spend CSR amount, the Board shall, in its report made under clause (o) of sub-section (3) of section 134, specify the reasons for not spending the amount. 
e)Ensure CSR Expenditure should be shown as  separate line item in Profit & Loss Statement
f)Check if no expenditure or short CSR Expenditure has  been made then  disclosure of reason has been made in Board Report.
8).Verify CSR expenditure with Bank statement for actual payment.

 

2. Other Expenses :

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a) Verifiy the transaction pertains to the  period  under Audit 

b) Understand the nature of expense

c) Set the materality level for each expesne depending upon the nature and size of expense 

d) Verify whether TDS , GST ,is applicable and whether properly charged or Not.

e) Check whether any bill pertains to prior period is booked during the period under audit 

f)  Check whether the Invoice is complete in all aspects like Date , GSTIN , Description of Services /Goods delivered.

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