Summer Training Report
Summer Training Report
Summer Training Report
On
Audit procedures of a Chartered
Accountant
FirmA Study on Shekhar Chandra & Co.
Submitted in partial
fulfilment of
Master of business
administration (Finance)
Year 2015-2017
SUBMITTED TO
SUBMITTED BY
Prof. P.MADAN
KUKRETI
SONALI
MBA
FMS (GKV)
LETTER OF TRANSMITTAL
31 August, 2016
Pankaj madan
Head & dean
Faculty of Management Studies
Gurukul Kangari University
Subject: Submission of Internship Report
Dear Sir,
With due respect and great pleasure I am submitting my internship report
on Audit
Procedures followed by Shekhar chandra & Co, Chartered
Accountants. One and half month internship program was a great
experience to me as it provided me with wide exposure to the professional
environment. The title of my report is Audit Procedures of a
accountant Firm A Study on shrkhar Chandra & co. . My main
focus of the study is
to find out the external audit procedure which is followed by . The report is
ACKNOWLEDGEMENT
PANKAJ RANA
EXECUTIVE SUMMARY
This report is titled Audit Procedures of a Chartered Accountant
Firm A Study on
Shekhar Chandra & co. is an outcome of MBA internship program.
This report contains the details of the audit practice followed by firm.I
have divided this report into seven sections. First section contains the
background of thestudy. Section two will depict a clean picture of a firm. In
4
section three I have organized and discussed all my knowledge that I have
gathered about auditing during my studies at the Department of
management , Gurukul kangari university. Section four will provide the
details of the overall audit procedures of Shekhar Chandra & Co.. In
section five, I have made a comparison between the Audit Procedures
followed by FIRM and Emile Woolfs Chronological Sequences of Audit
Procedures. Section six contains the problems that I have identified to
carry out audit engagement in FIRM and some recommendations to
minimize such problems. In section seven, I have drawn an overall
conclusion.
TABLE OF CONTENTS
Title Page No
Table of Contents
5
Title page
Letter of Transmittal
2 Acknowledgement
3
Executive Summary
4
1.1 Introduction
09
10
10
10
11
11
14
2.2 Background
14
15
15
15
16
18
20
21
25
27
27
29
30
32
34
36
39
42
44
45
46
47
48
48
49
4.2.4.9 Communication
49
4.2.5 Development Of Effective And Effi cient Audit Plan/ Work Program
49
50
51
52
55
55
55
64
9
5.2 Similarities
65
5.3 Differences
68
76
Appendix 2
77
Appendix 3
79
Appendix 4
81
Appendix 5
82
BIBLIOGRAPHY
83
SECTION - 1
STUDY BACKGROUND
10
INTRODUCTION:
In todays world academic education is not adequate to enable a student
to compete with
confidence and reach his/her goal without having experience with the
outside world. In
order to have an idea and gain experiences, we, the students of Faculty of
Business
11
13
14
sources information
15
16
SECTION 2
ORGANIZATIONS
PROFILE
17
Firms Profile
2.1 PROFILE OF THE FIRM
Name of the Audit Firm : Shekhar Chandra & CO.
Chartered Accountants
Date of Establishment : 15th February, 1992
Address of the firm,
Adarsh Market, Tilak Road
Rishikesh 249201, Uttarakhand
Phone: 91-135-2433513
Fax #: 91-135-2435513
E-Mail: sccrishikesh@gmail.com
Web site: www.cashekhar.com
2.2 BACKGROUND:
Founded in 1992, SHEKHAR CHANDRA & CO. started with two partners. The name are
Chandra shekhar Sharma and abhinav chaurashiya
18
At present the partnership comprises four founder partners and six new partners.
Registration of Firm:
SHEKHAR CHANDRA & CO. Chartered Accountants Firm is registered under the
Institute of
Chartered Accountants of India in the year 1992..
The firm has one offi ce in the city with four different Divisions to manage its day to day
activities. The divisions are:
Auditing,
Income Tax, and
Consultancy Services.
2.7 ACHIEVEMENT OF FIRMS:
At present SHEKHAR CHANDRA & CO. have 120+ audit clients. As one of the top firms in
Rishikesh. It also done auditing work of more cities ans states .
SHEKHAR CHANDRA & CO. have audit clients of all type, e.g. public, private, governmental,
profit/nonprofit organizations.
2.10 SERVICES OFFERED COVER THE FOLLOWING AREAS:
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Management consultation/development
Statutory audit
Accountancy
Taxation
Accountancy and management training
System development
Data processing with computer
Privatization consultancy (Include pre-privatization review, restructuring,
valuation in particular and privatization assistance in general)
Other accounting ancillary services including investigation, internal and
management audit.
Micro- finance consulting.
Organizational consulting services
Share/ business/ asset valuation.
Audit 40%
Accounts preparation (including data processing and book-keeping) 5%
Tax 20%
Financial Advisory Services 20%
Management Advisory Services 15%
Total 100%
20
SECTION -3
LITERATURE REVIEW
21
The auditor must be qualified to understand the criteria used and competent to know the
types and amount of evidence to accumulate to reach the proper conclusion after the
competent person who is biased performing the evidence accumulation when unbiased
information and objective thinking are needed for the judgments and decisions to be
made. Independence cannot be absolute by any means, but it must be a goal that is
23
received, whether the proper raw material was acquired considering the
production needs
of the company, or whether the price charged for the goods was
reasonable. The criteria
used depend upon the objectives of the audit.
Economic Entity:
Whenever an audit is conducted, the scope of the auditors responsibility
must be made
clear. The primary method involves defining the economic entity and the
time period.
In most instances the economic entity is also a legal entity, such as a
corporation, unit of
government, partnership, or proprietorship. In some cases, however, the
entity is defined
as a division, a department, or even an individual.
The time period for conducting an audit is typically one year, but there is
also audits for a
month, a quarter, several years, and in some cases the lifetime of an
entity.
Reporting:
The final stage in the audit process is the audit report the
communication of the findings
25
to users. Reports differ in nature, but in all cases they must inform readers
of the degree
of correspondence between quantifiable information and established
criteria.
Recording of
transactions
and
preparation of
financial
Evaluation of
financial
statements
Auditing
26
principles and rules that provides the basis for preparing the accounting information. In
addition, accountants must develop a system to make sure that the entitys economic
27
whether recorded information properly reflects the economic events that occurred during
the accounting period. Since the accounting rules are the criteria for evaluating whether
the accounting information is properly recorded, any auditor involved with these data
must also thoroughly understand the rules. In the context of the audit of financial
a) Operational Audit:
Operational Audit refers to the study of business operations for the
purpose of making
recommendations about the economic and efficient use of resources,
effective
28
b) Compliance Audit:
Management often wants to know whether its organizational policies are
being complied
with or whether external mandates are being met.
The purpose of a compliance audit is to determine whether the auditee is
following
specific procedures or rules set down by some higher authority.
Results of compliance audits are generally reported to someone within the
organizational
unit being audited rather than to a broad spectrum of users. Management,
as opposed to
outside users, is the primary group concern with the extent of compliance
with certain
prescribed procedures and regulations. Hence a significant portion of work
of this type is
done by auditors employed by the organizational units themselves.
29
a)
perform an audit and draw conclusion that can be relied upon by all users
than to have
each user perform his or her own audit.
b) Internal Audit:
Internal audit is an independent appraisal function established within an
organization to
examine and evaluate its activities as a service to the organization. The
objective of
internal auditing is to assist members of the organization in the effective
discharge of
their responsibilities. To this end, internal audit furnishes them with
analyses, appraisals,
recommendations, counsel, and information concerning the activities
reviewed.
Internal audit is practiced by auditors employed by an organization, such
as a bank,
hospital, city government, or industrial company. The Institute of Internal
Auditors is the
international organization that governs the standards, continuing
education, and generals
rules of conduct for internal auditors as a profession.
c)Interim Audit:
31
Interim audit refers to the procedures applied prior to the clients year
end, primarily for
the purpose of lowering the assessed risk level. The interim audit phase
consists of resting
the clients internal accounting controls and performing substantive tests
of transactions.
Interim audit procedures performed several weeks or months before the
balance sheet
date.
In recent years, certain changes in the information processing
environment have begun to
alter the traditional approach to the interim audit. Instead of testing the
internal control
procedures during a single interim time period, auditors are applying
these tests, along
with tests of selected transactions, at frequent intervals throughout the
year. This
sometimes referred to as Continuous Audit. This type of audit is especially
applicable to
those clients with sophisticated computer based accounting applications.
d)
Performance Audit:
32
e)
Governmental Audit:
33
General Standards
1. The audit is to be performed by a person or persons having adequate
technical
training and proficiency as an auditor.
2. In all matters relating to the assignment, independence in mental
attitude is to be
maintained by the auditor or auditors.
3. Due professional care is to be exercised in the performance of the audit
and the
preparation of the report.
35
Reporting Standards
1. The report shall state whether the financial statements are presented in
accordance
with generally accepted accounting principles (GAAP).
2. The report shall identify those circumstances in which such principles
have not
been consistently observed in the current period in relation to the
preceding
period.
3. Informative disclosures in the financial statements are to be regarded
as
reasonably adequate unless otherwise stated in the report.
4. The report shall either contain an expression of opinion regarding the
financial
statements, taken as a whole, or an assertion to the effect that an opinion
cannot be
expressed. When an overall opinion cannot be expressed, the reasons
therefore
should be stated. In all cases where an auditors name is associated with financial
36
statements, the report should contain a clear-cut indication of the character of the
auditors work, if any, and the degree of responsibility the auditor is taking.
Rules of
Conduct
Interpretations
are not
37
Ethical Rulings
.
3.5.1 AICPA Principles of Professional Conduct:
The principles provide the ethical concepts on which the Rules of Conduct
are based as
well as the standards for meeting the public trust. The principles provide
the broadest
framework for professional conduct and should be the highest guide for
professional
action. Auditors should always look first to the principles for professional
guidance. The
principles are as follows:
Responsibilities:
In carrying out their responsibilities as professionals, members should
exercise sensitive
professional and moral judgments in all their activities.
Public Interest:
Members should accept the obligation to act in a way that will serve the
public interest,
honor the public trust, and demonstrate commitment to professionalism.
Integrity:
38
Due care:
A member should observe the professions technical and ethical
standards, strive
continually to improve competence and the quality of services, and
discharge professional
responsibility to the best of the members ability.
Audit risk is defined as the risk that the auditor may unknowingly fail
to appropriately
modify his/her opinion on financial statements that are materially
misstated. So audit
risk is the risk that the auditor gives an inappropriate audit opinion when
the financial
statements are materially misstated. Audit risk has three components:
Inherent
transactions
misstatement that could be material, individually or when aggregated
with
misstatements in other balances or classes, assuming that there were no
related
internal controls.
Control
account
balance or class of transactions and that could be material individually or
when
40
Detection
will not
detect a misstatement that exists in an account balance or class of
transactions that
could be material, individually or when aggregated with misstatements in
other
balances or classes.
SECTION - 4
42
43
45
is favorable to them, and it appoints the audit firm for audit purpose. From
the technical
and financial proposal of the CA firm the client company understands the
nature of the
audit (such as independent, external) to assess the organizations internal
control system
in administering the audited matter.
STAGE 4: A letter is sent by CA firm to the client confirming to
work with the
client Confirmation Letter
After receiving the acceptance letter from the client, CA firm provides
confirmation
letter describing the firms willingness to work with the client.
AUDIT PROCESS
Irregularities
Going Concern
Client Value
47
Test of controls
Substantive test
Test of controls
Substantive test
48
Errors
Errors are unintentional misstatements or omissions of accounts of
disclosures in
financial statements and may involve:
a) mistakes in gathering or processing accounting data from which
financial
statements are prepared.
b) incorrect accounting estimates arising from oversight or
misinterpretation of facts
and;
c) mistakes in the application of accounting principles relating to amount,
classification, manner of presentation or disclosure.
49
Existence
given
date and recorded transactions have occurred during a given period.
presented in the
financial statements are so included.
stated at
expected settlement amounts.
Rights and obligation. Assets are the rights of the entity and
50
financial
statements are properly classified, described and disclosed.
Efficiency
The audit team should design audit procedures that accomplish the
overall goals
discussed above in the most efficient manner. Performing an efficient
audit involves:
Performing front-end risk assessment and planning with adequate
partner and
manager involvement.
Designing the combination of audit procedures based on the risk
assessment
that will efficiently reduce the risk of undetected material misstatements
to an
appropriately low level.
Assigning work to adequately trained and supervised persons with
appropriate
experience and skill levels.
Client Value
It has long been a tradition of our firm to provide enhanced value to
clients as an integral
part of our audits. This strategy has allowed us to differentiate our
approach from that of
52
53
54
55
Consider materiality
Information is material if its omission or misstatement could influence the
economic
decisions of users taken on the basis of the financial statements.
Materiality depends on
the size of the item or error judged in the particular circumstances of its
omission or
misstatement.
57
Quantifying Materiality
A common rule of thumb for materiality is 5 to 10 percent of pretax
income. Items less
than 5 percent are considered immaterial, whereas items that are more
than 10 percent are
material. For items between 5 and 10 percent, judgment is applied
The blank materiality calculation worksheet attached in Appendix -2 can
be used in
different audit work of Shekhar Chandra firm.
58
Key Factors
Significant background information and business, economic and industry
conditions that
provide an indication of the level of risk for an engagement are mentioned
in items 1-15
listed below:
1. Understanding client business: Can be obtained from various sources,
e.g. annual
report, minutes, internal reports, previous year audit work papers,
discussion with
client;
2. Managements style, outlook;
3. Significant Current Events and Reporting Issues;
4. Results of Financial Performance Review;
5. Industry Conditions and Issues;
59
61
62
Auditors assessment of
control risk is
HIGH
Auditors assessment
of inherent risk
MEDIUM
LOW
HIGH
LOWEST
LOWER
MEDIUM
MEDIUM
LOWER
MEDIUM
HIGHER
HIGHER
HIGHEST
LOW
63 MEDIUM
processional care.
There are many different ways in which financial statements can be
intentionally
misstated. We generally consider the following four types:
* Generating and recognizing revenues where none exists
* Inappropriate acceleration of revenue recognition
* Transactions with related parties valued either below or in excess of
equivalent
transactions with unrelated parties.
* Understatement of and shifting of costs and expenses.
4.2.4.7 Documentation
If during the performance of the audit, fraud risk factors are identified that
cause the
66
4.2.4.9 Communication
When the auditor identifies a misstatement resulting from fraud, or a
suspected fraud, or
error, then auditors responsibility is to communicate that to
management, those charged
with governance and, in some circumstances, to regulatory and
enforcement authorities.
68
Type of Test
level test covered
Account
Control Outlines
70
designed to
prevent misstatements from occurring as a result of unauthorized or
improperly
authorized transactions.
71
Analytical Procedures
Analytical procedures means the analysis of significant ratios
and trends including the resulting investigation of fluctuations and
relationships that are inconsistent with other
relevant information or deviate from predicted amounts. Analytical
Procedures are the testing of financial information by evaluating actual vs.
expected relationships among financial and non-financial data, e.g.
utilities, rent, payroll.
Analytical procedures may be used as a substantive test of balances and
for a final review
of year end financial statements.
The auditor should apply analytical procedures at the planning and overall
review stages
of the audit. Analytical procedures may also be applied at other stages.
72
Detail Tests
Detailed tests may include the following:
a) Confirmation of third parties- Bank, A/P, A/R
b) Observation of asset - Inventory count, FA, Cash Count, Payroll cheque
distribution
c) Tests of reconciliation- bank reconciliation, inter-co reconciliation
d) Analysis of account
e) Vouching
f) Exception tests
g) Cut off tests
h) Inquire
i) Valuation tests
j) Reading of FS
k) Reading of minute of meeting of stockholder, directors and committee.
Confirmations
The audit team should determine whether the use of external
confirmations is necessary
74
75
4.2.7
RESULTS
At the last stage of audit, the audit team communicates the result of the
audit to the
management and the stakeholders of the company. The audit team issues
two types of
reports:
Modified Reports
In addition to unqualified or qualified, we sometimes provide modified
audit report. An
auditors report is considered to be modified in the following situations:
77
79
No stock
count at a branch
2. Except for scope
Acceptance of management
Going
concern
4. Except for inherent uncertainty
Major
litigation
(ii) Fundamental
5. Disclaimer scope
Accounting
breakdown
6. Disclaimer scope
Inability to
substantiate cash
transactions
7. Disclaimer inherent uncertainty
long-term
Valuation of
Construction contracts
(iii) Disagreement material but not
fundamental;
8. Except disagreement as to facts
No provision
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Company
omitted information on
overseas
associated companies and
at date of
issue of financial
statements
has not obtained
Department to
Trade agreement.
(iv) Disagreement Fundamental;
10. Adverse departure from Indian
Long-term
with no
Goodwill no
longer justified at
balance sheet amount.
(v) Disagreement Fundamental;
13. Adverse departure from IAS.
Long-term contracts
carried at cost
with no provision made for
losses in
81
accordance
14. Adverse disagreement as to facts
Goodwill no
longer justified at
balance sheet amount.
82
and controls that might lead to material errors should be highlighted and
brought
to management's attention.
ii. As a secondary purpose, a letter to management may also be used to
provide
management with other constructive advice. The auditor might, for
example, be
able to suggest areas where economies could be made or where resources
could be
used more efficiently.
iii. A letter to management is also a useful means of communicating
matters that have
come to the auditor's attention during the audit that might have an
impact on
future audits.
Contents:
Generally the following matters, arising out of the audit, will be included in
a letter to
management:
a) weaknesses in the structure of accounting systems and internal
controls;
b) deficiencies in the operation of accounting systems and internal
controls;
c) unsuitable accounting policies and practices;
d) Non-compliance with accounting standards or legislation.
83
Management response
The auditor should request a reply to all the points raised, indicating what
action
management intends to take as a result of the comments made in the
management letter. It
should be made clear in the report that the auditor expects at least an
acknowledgement of
the letter or, where he considers it appropriate, the directors' discussion of
the letter to be
recorded in the board minutes.
v. Safeguarding
f) Findings: Each finding consists of four different sections, as under:
vi. Fact (What it is)
vii. Effect (What harm was caused by not complying with the criteria)
viii. Recommendation (That corrects the cause and the condition as
applicable)
ix. Management Response
g. Date of the report;
h. Auditors address; and.
SECTION -5
COMPARISON OF
SHEKHAR CHANDRAS
AUDITPROCEDURE WITH
CHRONOGICAL
SEQUENCES
85
86
clients business.
Provides audit report through which he expresses his opinion.
The audit procedures followed by the auditor to conduct an audit largely
dependent on the
size, nature, type, complexity and circumstances of the clients business.
Emile Woolf in his book Auditing Today describes an extensive audit
procedure which
covers more or less all the steps followed by the auditor. Although his
audit procedure
contains eight stages, but there are basically three main functions:
1. Gather information on background and operational systems of clients
business.
2. Consider and evaluate the internal control and overall security structure
of the
clients business to determine the strengths and weaknesses of
operational system
and what the consequences of weaknesses in major operational areas are.
3. Prepare own (or check clients) detailed year-end financial statements
(P & L
A/C, Balance Sheet), form an opinion on the basis of the examination of
financial
statements and express the opinion to the interested parties in the form of
audit
report.
87
5.2 Similarities
a) Firms Overall Goal:
Baker Tilly Internationals Audit Procedure focuses on some factors that
need to be
considered to achieve firms overall goal that is to express an opinion on
financial
statements. The auditor should concern with:
Errors
Irregularities
Going Concern
Efficiency
Client Value.
Emile Woolfs Chronological Sequence of Audit Procedure does not
explicitly focus on
such factors. But at the time of designing the nature, timing, and extent of
the substantive
tests, all these factors must be considered by the auditor.
88
b) Gather Information:
Auditor gathers and evaluates the background and operational system
information of the
clients business to obtain an overall knowledge and understanding of the
clients
business and operations. This is common for both the procedures.
90
Integrity of management
Client motivation
Results of previous audits
Related parties
Dollar amount of account balances
Initial versus repeat engagement
Susceptibility of defalcation etc.
Both the procedures focus on the assessment of risk at the financial
statement level that is
the assessment of general risk.
b. Bank
c. Inventory
d. Fixed Assets
e. Accounts Receivables
f. Accounts Payables
g. Revenue
h. Expense
i. Payroll
j. Loan
k. Investment etc.
5.3 Differences
a) Engagement Procedure:
Emile Woolfs Audit Procedure describes thoroughly how to involve with a
new client.
92
b) Management Letter:
In case of Chronological Sequence of Audit Procedure by Emile Woolf, the
auditor
provides only audit report to the interested parties who make their
economic decision on
the basis of such report.
In Baker Tilly Internationals Audit Procedure, auditor provides not only
audit report to
the interested parties but also management letter to the management of
the organization.
The principal purpose of a report to management is to enable the auditor
to give his
93
94
SECTION -6
Finding &
recommendation
95
FINDING NO. 1
Involving in an audit engagement without having proper
knowledge of clients business.
Fact:
In most cases, when the firm gets a new client, partner/partners select
one of the
managers as the supervisor of the audit team. Then supervisor selects
some of the
students as the members of the audit team for such audit engagement
and the most senior
student is selected as the in charge of the team. Sometimes supervisor
does not give all
the members of the team an overall idea of the client, nature of its
business, its operation
etc. Only in charge is informed about the client and in charge also does
not discuss the
details of the clients business and its nature before going to the client.
Effect:
a. As the members do not know anything about the client, clients
business, they
have to give much time to understand clients business and then they can
start
their audit tasks. So the audit tasks take much time.
96
FINDING NO. 2
Work programs are not followed properly.
Fact:
Work programs contain step by step instructions to carry out the audit
work. In
Shekhar Chandra , we have separate work programs for different sectors
of business. Work
programs are also developed for different account heads to make our
audit tasks easier.
But in most of the cases, work programs are not followed properly. In
some cases, we just
touch each account head but do not go to the deep of the head to save
our time.
Effect:
a. Because of avoiding work programs, we are not able to
obtain proper idea about
each account head.
97
FINDING NO. 3
Lack of supervision.
Fact:
According to the audit standards, all the audit tasks must be supervised
properly.
Appropriate supervision ensures the quality of the audit engagement. But
practically, this
does not happen in firm. In most of the cases, in charge distributes
different
account heads to different students and gives them some idea about such
heads. But later,
in charge does not supervise his juniors works properly.
FINDING NO. 4
Limited time to complete an audit engagement.
98
Fact:
We have to carry out and complete our audit tasks within a limited time
period.
Sometimes, Client creates pressure to complete the audit and provide the
audit report
within very limited time as it he/she has to submit the audit report and
audited financial
statements to the Stock Exchange or Registrar of Joint Stock Companies
(in case of
private limited companies) within a fixed date. Sometimes, engagement
partner of such
engagement also creates pressure to complete audit work as early as
possible.
Effect:
Because of time limitation, we complete the audit engagement and
provide the audit
report very quickly. So, it is not possible to ensure the quality of the audit
work.
Sometimes some account heads may be untouched.
.
FINDING NO. 5
Difficulties in obtaining required audit evidences.
Fact:
99
Effect:
If the client fails to provide the required and necessary documents, it is
difficult for us to
give or issue an appropriate audit opinion and provide the appropriate
audit report.
100
Recommendations
1.
Before going to the client, supervisor or in charge should give some brief
2.
4.
An audit team should be given appropriate time (neither much nor less)
5.
SECTION 7
101
CONCLUSION
CONCLUSION
Baker Tilly Internationals Audit Procedure describes the step by step
instructions of a
financial statement audit. This procedure is sufficient for CA FIRM . If all
these steps are
102
103
Appendix1
Chartered Accountants
Client
Audit Year End
Internal Control Evaluation
1.Organization: Management
Comments/ Descriptions
has established and used
clearly specified delegation of
authority and responsibility
104
Overall conclusion:
Signature
Date
Appendix-2
Chartered Accountants
Initials
Date
Done by ________ ____
Reviewed by________
Materiality Worksheet
Client Name.
Balance Sheet Date..
_____
_____
_____
_____
_____
entity)_
7. Select a multiplier if audit risk is normal, or, if better than
normal, select.1
8. Multiply line 6 by line 7
_____
_____
105
Appendix-3
Chartered Accountants
Client..
Audit Year End
Client Profile & General Risk Assessment Memo
Effectiveness
106
Confirmed
through the
steps
Comments/
Remarks
_________
Signature
_______
Date
Effectiveness
Confirmed
through the
steps
----------------Signature
----------------Date
107
Appendix-4
Customer Name..............................
Address........................................
Sub: Accounts Receivable Confirmation
Dear Sir/ Madam,
In connection with the audit of our financial statements, please confirm
directly to our
Auditors Shekhar Chandra & Co., Chartered Accountants, Adarsh Market,
Tilak Road, Rishikesh the amount of your indebtedness to us which
according to our records as of (date) amounted to . -RS-----.If the amount shown is in agreement with your records. Please check A
below.If the amount is not in agreement with your records, please check
and complete B
below.
After checking the appropriate response, please sign and date your reply
and mail it
directly to our auditors in the enclosed envelope. DO NOT SEND ANY
PAYMENTS to
our auditors.
Very truly yours,
108
109
audit
manage-
report
-ment
Chartered Accountants
System to law &
&
-ntal
letter
Client
validity by.....................
Prepared
110
Reviewed
BIBLIOGRAPHY
Audit Manual, Shekhar Chandra & Co., Chartered Accountants
Arens A. A. and Loebbecke J.K. (1980, Auditing: An Integrated Approach,
First Edition, Prentice Hall International inc., New York.
Woolf E . Auditing Today, Latest Edition, Prentice Hall International Inc, New
York.
international Accounting Standards(BAS)
www.google.com
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