Audit Excel Checklists

Firm Name
Client Name
S NO FORMAT CHECKLISTS
I ACCEPTANCE AND CONTINUANCE RELATED
1 Acceptance Checklist
2 Continuance Checklist
II ENGAGEMENT DOCUMENTATION
3 Certificate under Sec 141
4 NOC from the retiring auditor
5 Engagement Letter with ICFR and without ICFR
III UNDERSTANDING OF CLIENT BUSINESS & RISK ASSESSMENT
6 Understanding of client business
7 Factors causing Risk of Material Misstatement
IV AUDIT PLANNING MEMORANDUM
8 Audit Planning Memorandum
V COMPONENT WISE AUDIT PLAN - ASSETS
9 A TO C FIXED ASSETS AUDIT PROGRAM AND REGISTER TEMPLATES
10 INVESTMENTS
11 INVENTORIES
12 REVENUES AND RECEIVABLES
13 CASH BALANCES
14 BANK BALANCES
15 LOANS AND ADVANCES
VI COMPONENT WISE AUDIT PLAN - SHARE CAPITAL AND LIABILITIES
1 SHARE CAPITAL
2 RESERVES AND SURPLUS
3 SECURED LOANS
4 UNSECURED LOANS
5 CURRENT LIABILITIES
6 PROVISION FOR TAXATION
VII COMPONENT WISE AUDIT PLAN - KEY EXPENSES
1 PAYROLL
2 ELECTRICITY
3 RENT AND OTHER MONTHLY EXPENSES
4 OTHER MAJOR EXPENSES AND MISCELLANEOUS EXPENSES
VIII TAX DEDUCTION AT SOURCE
1 TDS CHECKLIST
IX GOODS AND SERVICES TAX
1 GST CHECKLIST AS RELEVANT FOR STATUTORY AUDIT
X KEY CHECKLISTS
1 CARO
2 CONTINGENT LIABILITIES
3 SCHEDULE III CHECKLIST
4 GOING CONCERN
XI TEMPLATES
1 NOTICE FOR AGM
2 REPORT OF THE BOARD OF DIRECTORS
3 AUDITORS REPORT
4 BS AND PL - FINANCIAL STATEMENTS IN SCHEDULE III FORMAT
5 NOTES ON ACCOUNTS
6 SAMPLE CASH FLOW STATEMENT
XII GUIDANCE
1 SPECIFIC ASPECTS - ACCOUNTS AND AUDIT IN COMPANIES ACT 2013
2 SPECIFIC EXEMPTIONS TO PRIVATE LIMITED COMPANIES
3 COMPANIES ( AMENDMENT ) ACT 2017
4 INTERNAL CONTROLS OVER FINANCIAL REPORTING
Prepared by ……………………………………………………………………………………………Date
Reviewed By…………………………………………………………………………………………….Date
CA Sripriya Kumar | A Smart CA Initiative

Firm Name
Client Name
Format # 1 _ Client Acceptance Checklist
Created on 1-Apr-18
Next Review Ongoing for any material changes that will impact this checklist
References SQC 1 - Integrity of Client, Team Competence, Ethical Requirements
This checklist needs to be filled up at the time of Client Acceptance. This includes acceptance of clients
with a track record and newly incorporated enterprises as well. In case of a new entity, the evaluation may
be done with reference to other entities in the same group etc or with reference to the promoters history . In
case of independence, familiarity or advocay threats, the auditor should adopt approriate safeguards in
Objective accepting the engagement or not accept the engagement at all
S NO CRITERIA REMARKS
1 TONE AT THE TOP
a Are there any issues that come to our attention on integrity issues with the entity or its management
Are there any significant matters relating to the reputation of the client including but not limited to business
b practices, litigation, statutory violations, criminal offences etc
c Aggressively low levels of fees expected by the client
2 REVIEW OF BUSINESS AND COMPETITIVE ENVIRONMENT
a Any significant industry trends that are likely to impact the client
b Any specific issues such as debt leverage / single customer / sole supplier / competition threats
c Is the client in a regulated industry subject to policy changes
3 REVIEW OF FINANCIALS
a Do review of financial data indicate any adverse trends that may impact acceptance
b Any qualifications in the audit report that merit attention
c History of frequent / significant changes in Accounting policies
4 AUDITOR INDEPENDENCE ASSESSMENT
a Independence criteria as laid out in the Companies Act is accomplished
b No conflicting services as envisaged in Sec 144 of the Companies Act 2013
c There is no Self review threat on account of other services being performed
d The firm partner / manager do not hold shares in the entity as precribed
e No close relatives of the partner hold key positions in the entity including directorships
f Loans taken / given by the partners vis a vis the entity
g Members of the audit team are not employees of the client
h Recent pecuniary relationships which may impair independence
i Disproportionately large fees from the client vs the total billing of the audit firm
5 CONFLICT OF INTEREST
a Conflict of Interest with any other client of the audit firm
6 PAST AUDITOR COMMUNICATION
a Communication to retiring auditor including reasons for resignation
b Adverse replies if any to the above NOC request have been considered properly
7 HISTORY OF PERSONNEL / PROFESSIONAL CHANGES
a Frequent changes in employees / key personnel / directors
b Frequent changes in auditors / other professionals of the firm
8 TEAM COMPETENCE
Does the audit practice team have the relevant skills , experience and specialisation, if any required to
a handle the engagement
Prepared by ……………………………………………………………………………………………Date
Reviewed By…………………………………………………………………………………………….Date

Firm Name
Client Name
Format # 2 _ Client Continuance Checklist
Created on 1-Apr-18
Next Review Before acceptance of engagement for the next year, usually annual
References SQC 1 - Integrity of Client, Team Competence, Ethical Requirements
This checklist needs to be filled up annual before continuing with the present year audit. While the
Companies Act 2013 specifies a period of 5 years from the first appointment, this checklist may still be
completed annually to ensure compliance with aspects prescribed herein . In case of independence,
familiarity or advocay threats, the auditor should adopt approriate safeguards in accepting the engagement
Objective or not accept the engagement at all
1 TONE AT THE TOP
a Are there any issues that come to our attention on integrity issues with the entity or its management
Are there any significant matters relating to the reputation of the client including but not limited to business
b practices, litigation, statutory violations, criminal offences etc
c Aggressively low levels of fees expected by the client
2 REVIEW OF BUSINESS AND COMPETITIVE ENVIRONMENT
a Any significant industry trends that are likely to impact the client
b Any specific issues such as debt leverage / single customer / sole supplier / competition threats
c Is the client in a regulated industry subject to policy changes
3 REVIEW OF FINANCIALS, INTERNAL AUDITS AND OUR PREVIOUS YEAR AUDIT REPORT
a Do review of financial data indicate any adverse trends that may impact acceptance
b Any qualifications in the audit report that merit attention
c Unresolved audit issues that may have become material and significant
d Unresolvd internal audit issues, reduced scope , resignation / change in Internal Audit
e Any adverse remarks in the Board meetings on operations, financials etc
4 AUDITOR INDEPENDENCE ASSESSMENT
a Independence criteria as laid out in the Companies Act is accomplished
b No conflicting services as envisaged in Sec 144 of the Companies Act 2013
c There is no Self review threat on account of other services being performed
d The firm partner / manager do not hold shares in the entity as precribed
e No close relatives of the partner hold key positions in the entity including directorships
f Loans taken / given by the partners vis a vis the entity
g Members of the audit team are not employees of the client
h Recent pecuniary relationships which may impair independence
i Disproportionately large fees from the client vs the total billing of the audit firm
j Can the audit be continued in the context of compulsory under Sec 139 of the Companies Act
k Any need for partner rotation as the partner has serviced the client for too long
5 CONFLICT OF INTEREST
a Conflict of Interest with any other client of the audit firm
6 PAST AUDITOR COMMUNICATION
a Communication to retiring auditor including reasons for resignation
b Adverse replies if any to the above NOC request have been considered properly
7 HISTORY OF PERSONNEL / PROFESSIONAL CHANGES
a Frequent changes in employees / key personnel / directors
b Frequent changes in auditors / other professionals of the firm
8 TEAM COMPETENCE
Does the audit practice team have the relevant skills , experience and specialisation, if any required to
a handle the engagement
Based on a review as above, we recommend continuance of the engagement / discontinuance of the engagement
Prepared by ……………………………………………………………………………………………Date
Reviewed By…………………………………………………………………………………………….Date
Firm Name
Client Name
Format # 3 _ Acceptance Certificate - Sec 139 for Company Audits
Created on 1-Apr-18
Next Review Renewal
References Companies Act - Section 139
This letter needs to be submitted to the client before acceptance of the engagement as required under Sec
Objective 139 of the Companies Act
Letter Format
The Board of Directors

<Name of the Company>
<Address of the Company>
Sir / Madam,
In connection to proposed re-appointment of our firm as Auditors in the forthcoming Annual General
Meeting of your company, we certify the following as true and correct:
a. Our firm is eligible for appointment and is not disqualified for appointment under the Companies Act,
2013 (the Act), the Chartered Accountants Act, 1949 and the rules or regulations made thereunder;
b. The proposed appointment is as per the term provided under the Act.
c. The proposed appointment is within the limits laid down by the Act under Clause (g) of Sub-section
(3) of Section 141of the Act.
d. We confirm that there are no proceedings against our firm or any partner of the firm with respect to
professional matters of conduct
Or
We confirm that the following proceedings against our firm or any partner of the firm with respect to
professional matters of conduct is true and correct ( give Mem no, Name and details of proceedings)
Prepared by ……………………………………………………………………………………………Date
Reviewed By…………………………………………………………………………………………….Date
Letter Signed By ………………………………………………………………………………………Date
RELEVANT SECTIONS ( PROVISIO TO SEC 139 )
Provided further that before such appointment is made, the written consent of the auditor to such
appointment, and a certificate from him or it that the appointment, if made, shall be in accordance with the
i conditions as may be prescribed, shall be obtained from the auditor:
Provided also that the certificate shall also indicate whether the auditor satisfies the criteria provided in
ii section 141
Provided also that the company shall inform the auditor concerned of his or its appointment, and also file a
notice of such appointment with the Registrar within fifteen days of the meeting in which the auditor is
iii appointed.

Firm Name
Client Name
# 4 _ Engagement Letter format where Auditor is required / not required to report on Internal
Format Financial Controls Over Financial Reporting
Created on 1-Apr-18
Next Review Next Year
References SA 210 and
Issuance ICAI
of an Pronouncement
Engagement Letter on Letter format
Objective to the Client
Letter Format
Illus. 1 Engagement Letter for Audit of https://resource.cdn.icai.org/35939aasb25441a.pdf

Financial Statements under the
Companies Act 2013 and the Rules
Thereunder (When Reporting u/s
143(3)(i) is Applicable)
Illus. 2 Engagement Letter for Audit of Financial https://resource.cdn.icai.org/
Statements under the Companies Act 35940aasb25441b.pdf
2013 and the Rules Thereunder (When
Reporting u/s 143(3)(i) is not Applicable)
APPLICABILITY OF INTERNAL FINANCIAL CONTROLS OVER FINANCIAL REPORTING BY AUDITOR
Audit report for Financial

Status
Statements for the period
Ended March 31, 2014 Optional for all companies
Ended March 31, 2015 Compulsory for all Companies
Ended March 31, 2016 Compulsory for all Companies
Compulsory only for certain categories
of Companies – for accounting periods
Commencing on or after April 1,
commencing on or after April 1, 2016.
2016
Exemptions are available for some
categories
APPLICABILITY OF INTERNAL FINANCIAL CONTROLS OVER FINANCIAL REPORTING BY AUDITOR
1. The final position is as under : As per Notification dated 13th Jun 2017 read with corrigendum dated 13th July 2017
Chapter X, clause (i) of sub-section (3) of section 143 shall not apply to a private company:-
(i) which is a one person company or a small company; or
(ii) which has turnover less than rupees fifty crores as per latest audited financial statement and ( see note -
corrigendum below ) which has aggregate borrowings from banks or financial institutions or any body
corporate at any point of time during the
2. In addition to the above clause, the notification also states as under which is to be emphasised
“2A. The exceptions, modifications and adaptations provided in column (3) of the aforesaid Table shall be applicable to a
private company which has not committed a default in filing its financial statements under section 137 of the said Act or
annual return under section 92 of the said Act with the Registrar.”.
3. Notes : Corrigendum : MINISTRY OF CORPORATE AFFAIRS CORRIGENDUM New Delhi, the 13th July, 2017 S.O. 2218(E).—
In the notification of the Government of India, in the Ministry of Corporate Affairs, published in the Gazette of India, Extraordinary, Part
II, Section 3, Sub-section (i) vide G.S.R. 583(E), dated the 13th June, 2017 at page 4, in
paragraph number 5, in the Table, in the column (3), in item (ii), for the words ‘‘statement or’’ read ‘‘statement and’’
Note 2 : Circular dated 25th July, 2017 It has been provided in the Circular that it is hereby
clarified that the exemption shall be applicable for those audit reports in respect of financial statements
pertaining to financial year, commencing on or after 1st April,2016, which are made on or after the date of
the said notification

Firm Name
Client Name
Format #5 - No Objection from retiring auditor
Created on 1-Apr-18
Next Review Next Year
References ICAI Code of Ethics
Objective Obtain NOC in line with Professional Ethics
Letter Format
Communication with the previous Auditor.
To CA
Chartered Accountants
…………………..
Sub: Audit of ……………. Branch of …………… Bank - N O C - Reg.
Ref : Letter of Appointment from ……….. Bank, dated………..
In connection with the above referred matter, we have received a letter of appointment as Statutory
Auditors of ………………. For the year ended March 31, 2018
We have been informed that you were the Statutory Auditors for the previous year ending on ……………
Kindly request you to intimate us in writing as to whether you have any objection professional or
otherwise, which might warrant us not to accept the appointment.
We would be very much obliged if you can let us know your objection or otherwise within …….. days
and oblige. Your early response will be highly appreciated.
Thanking You,
For …………………….
Chartered Accountants
CA. ………………
Partner
Firm Name
Client Name
Format # 6 _ Understanding of the Clients Business
Created on 1-Apr-18
Next Review Renewal
References Company Related Information and discussions with the management
Understanding of the Clients business is fundamental to appreciating Risks involved in the audit of
Objective financial statements and to enable audit emphasis on relevant aspects of the client
1 BASIC DATA
2 OWNERSHIP AND GOVERNANCE
3 INDUSTRY DYNAMICS
4 ACCOUNTING SYSTEMS AND INTERNAL CONTROLS
4 KEY LAWS AND REGULATIONS IMPACTING CLIENT BUSINESS
Firm Name
Client Name
Format # 7 _Assessment of Risk of Material misstatement
Created on 1-Apr-18
Next Review Renewal
References
Review of the below mentioned factors will be important to assess and determine whether there is likelihood
of Risks of Material mistatement . This will determine the nature, timing and extent of audit procedures to
Objective be performed and the team to be deployed
S NO GENERAL AND GROUP RELATED REMARKS
Tone at the Top - Management views on Ethical business behaviour
Significant Related Party transactions
Complex capital structure charterised by cross holdings
Adverse media reports entity , related, group concerns, promoters & others charged with governance
Adverse events , natural / otherwise which have impacted the entity - loss / theft / fires / floods etc
S NO MARKET RELATED REMARKS
Highly dynamic or volatile industry conditions
Competition Conditions
Dependance on Key Customers
New products or locations proposed by the Company
S NO PERSONNEL RELATED REMARKS
Replacements / Joining / Exits of key personnel of the entity
Quality of personnel engaged in Financial and Management reporting in the entity
Performance and Result linked employee / top management incentive plans
S NO INTERNAL CONTROLS AND INTERNAL AUDIT REMARKS
Nature of IT environment and robustness of controls
Standard Operating Procedures, Segregation of Duties and Delegation of Powers
Significant issues indicating internal control weaknesses
Any significant issues in Internal Audit reports
Management Assessment of Internal Controls over Financial Reporting and significant weaknesses
Whistle blower and Fraud reporting protocols
Any Frauds discovered during the period
Business Continuity and Disaster Recovery Planning
S NO FINANCIAL STATEMENT TRANSACTIONS REMARKS
Significant forex transactions and exposures
History of significant audit adjustments or misstatements
Significant management / accounting estimates
Status of pending litigation
Management awareness and strategies to mitigate Fraud Risks
Significant contingent liabilities / off balance sheet items
Any other issues
Based on a review as above, we determine the Assessment of Risk as High / Medium / Low
Prepared by ……………………………………………………………………………………………Date
Reviewed By…………………………………………………………………………………………….Date
Firm Name
Client Name
Format #8 _ Audit Planning Memorandum
Created on 1-Apr-18
Next Review Renewal
References
Objective The APM lists the risks, materiality, team and other aspects relevant to the audit
1 ENGAGEMENT SCOPE Discussion by Report by
a Statutory Audit
b Limited Review
e Tax Audit
d GST Audit Audit
e Transfer Pricing
f Specific certifications under Companies Act , other legislations
2 COVERAGE OF AUDIT
a Entity By Us
b Parent By Us By other auditor
c Subsidiaries By Us By other auditor
d Associates By Us By other auditor
e Entities abroad By Us By other auditor
3 UNDERSTANDING OF KEY COMPONENTS

S No Component 2019-20 2016-17 Variance Risk / Materiality
1 Fixed Assets
2 Investments
3 Inventories
4 Revenues and Receivables
5 Purchases and Payables
6 Cash and Bank
7 Loans and Advances
8 Share Capital
9 Reserves and Surplus
10 Secured Loans
11 Unsecured Loans
12 Current liabilities
13 Employee Costs
14 Contingent liabilities
15 Key expenses
16 Others
4 COMMENCEMENT AND CONCLUSION DATES

S No Units Interim Audit Interim Audit Final Audit Final Audit
Commencement Conclusion Date Commencement Conclusion Date
1 HO
2 Factories
3 Branches
4 Others
4 COMMENCEMENT AND CONCLUSION DATES

S No Component Risk & Control Testing Audit
Materiality Y/N Plan
1 Fixed Assets
2 Investments
3 Inventories
4 Revenues and Receivables
5 Purchases and Payables
6 Cash and Bank
7 Loans and Advances
8 Share Capital
9 Reserves and Surplus
10 Secured Loans
11 Unsecured Loans
12 Current liabilities
13 Employee Costs
14 Contingent liabilities
15 Key expenses
16 Others
5 PREVIOUS AUDIT FINDINGS
6 INTERNAL AUDIT REPORT

a Internal Audit is in place
b Reports received and reviewed
c Commensurate with nature and size of business
6 TEAM Last year ? This Year ?

a Engagement Partner
b Review Partner
c Qualified Assistants
d Article Assistants
e Experts - Actuaries
f Experts - Lawyers
g Experts - Valuers
h Experts - Other CA's
6 MATERIALITY THRESHOLD
a Balance Sheet Items
b Profit and Loss Account items
c Statutory Compliances
d Threshold items

Client E/OC Existence or occurrence.
Component Fixed Assets C Completeness
Done by RO Rights & Obligations
Reviewed By V Valuation or Allocation.
References Accounting Standards and Auditing Standards PD Presentation and disclosure
Year 2019-20
These are the audit procedures that are relevant to most entities, the same may be enhanced / reduced as may be applicable to the client
A OVERALL PROCEDURES E/OC C RO V PD WP ref Exceptions

ü ü ü
1 Obtain the Block Schedule for the year
2 Reconcile to the General Ledger Account wise
3 Reconcile the totals account wise to the Fixed Assets register
Trace opening balances in GL accounts to PY audited closing
4 balances
Review the Delegation of Powers to understand the authority
5 levels in respect of additions, deletions , write offs etc
Is there any change in the Accounting Policy relating to Fixed
Assets or depreciation. Has it been properly treated along with
6 notes on impact etc
Has the management carried out a review of the useful lives of
assets during the year. Are there any material changes which
would necessiate change in depreciation rates and relevant
7 disclosures for impact
Adequate Disclosures have been made for the gross block and
8 reserve for depreciation
B ADDITIONS E/OC C RO V PD
ü ü ü
1 Obtain the total list of additions during the year
Are the additions in line with the approved Capital Budget for the
2 year, if any
3 For a sample of additions , check the following
4 Is the Purchase authorised by the relevant approval authority
5 Original invoices
6 In the name of the entity
7 Amount is matched
8 Taxes and Duties are considered correctly
9 Capitalised on date put to use
10 In case of ready to use assets, capitalised on date of purchase
Enquire from the staff if any new assets have been put to use. If
so, trace such assets to the Fixed Assets register and the GL to
ensure that no assets have been excluded from capitalisation or
11 charged directly to revenue
C DELETIONS E/OC C RO V PD
ü ü ü
1 Obtain the total list of assets deleted due to sale / other disposal
2 Is the disposal authorised by the relevant approval authority
3 In case of write off , is the same properly authorised
4 In case of sale, is the sale properly authorised
Has a Sale invoice been raised and approved and related tax
5 compliances ensured
Enquire from the staff if any assets have ceased to exist. If so,
ensure that such assets are removed from the asset register and
6 the books of account
Has the Accumulated depreciation on the sale been considered
7 properly and the Profit / loss been accounted correctly
Where new assets have been purchased on exchange of old
assets, ensure that the disposal and the new asset are properly
8 accounted for
D PERSONAL AND REVENUE EXPENSE E/OC C RO V PD

Year 2019-20
ü
Review Fixed assets capitalised during the year to ensure that no
1 revenue expenses have been capitalised
Review the Repairs and Maintenance account to ensure that no
2 capital expenses are expensed to Revenue
E SPECIFIC ASPECTS RELATING TO CAPITALISATION E/OC C RO V PD

Review policies in relation to the under and check if the same
have been applied correctly and consistently on asset
1 capitalisations during the year
2 Capitalisation of expense upto Put to Use State
3 Cease of capitalisation after Put to Use State
4 Interest capitalisation in accordance with AS 16
5 Treatment of forex fluctuations on foreign currency borrowings
6 Treatment of government grants associated with Fixed assets
In case of assets imported under Concessional Schemes such as
EPCG etc whether the export obligations are correctly disclosed
7 in the financial statements
E PHYSICAL VERIFICATION E/OC C RO V PD

ü ü
Does the management have a plan for physical verification of all
1 assets in a reasonable time frame
2 Has the verification been carried out during the year
Was the verification conducted by the management or by any
3 other professional
4 Is the verification documented by a report
Are the physical assets tagged and linked to the fixed asset
5 register through a common asset code.
Are the excess / shortages properly accounted and entries
6 completed in the books of accounts
Have such excess / shortages been brought to the attention of the
7 Board of Directors of the Company
Perform a 2 way test verification of a few assets - book to
8 physical and physical to books vs the fixed asset register
F IDLE / UNUTILISED ASSETS E/OC C RO V PD
Review with the management and staff if there are any idle
1 /inactive assets
Review if any assets are obsolete and ensure that the provisions
for the same are properly recorded in the books of accounts of the
2 entity
In case of impaired assets (line of production not used etc) how
does the management assess the carrying value and the provision
3 for impairment
G CONTROL OVER ASSET MOVEMENTS E/OC C RO V PD

Are there proper controls in place to ensure that all asset
movements are properly authorised by returnable / non returnable
1 gate passes
Review assets not returned for a considerable period of time to
2 ensure that assets lost are not reported as pending return
H DEPRECIATION E/OC C RO V PD
ü
Year 2019-20
Obtain the listing of assets along with the depreciation workings

1 for the year
Ensure that the depreciation as per the workings is reconciled to

2 the Fixed assets register as well as the General Ledger balances
3 Is the depreciation calculation automated
Test Check or recompute the depreciation based on the level of
4 comfort of the IT system used by the Company
Report exceptions if any and ensure that rectifcation entries are
5 carried out
Ensure that depreciation rates are based on management estimate
on useful life. If the life differs from that prescribed under
Companies Act 2013 to review is the management has a technical
6 basis for the assessment
Ensure that shift depreciation is provided for / computed properly

7 and review the shift register maintained by the Ciompany
In case of a revision in the useful life of an asset, ensure that the
depreciation rate is recalibrated to depreciate the asset over the
8 remaining useful life
In case of a new audit , ensure that the depreciation calculations
for the year 2014-15 due to the changes in Companies Act 2013
9 are carried out properly
Ensure that the accumulated depreciation never exceeds the
Gross Block (less residual value if applicable) due to a
10 calculation error
I FIXED ASSETS REGISTER E/OC C RO V PD

Ensure that the fixed assets register is maintained properly and
1 reconciled to the General Ledger
2 The register should contain the following particulars (ideal)
a Asset Code
b Asset name
c Asset description
d Location where the asset is present
e Supplier
f Invoice reference
g Date of acquisition
h Purchase Cost
i Other expenses capitalised
j Total Gross Block Value
k Depreciation accumulated
l Net block
J REVALUATION E/OC C RO V PD
ü ü
1 Have any assets been revalued during the year
2 Has the Revaluation Reserve been created
3 Relevant disclosures are made
In case of sale of an asset, the balance in the Revaln Reserve has
4 been adjusted at the time of sale
J TITLE AND INSURANCE E/OC C RO V PD

ü ü
Are all the titles to the assets in the name of the Company, if not
1 report
Year 2019-20
Are all assets insured for their replacement value , all insurance
2 policies should be sighted and recorded
K SPECIAL CATEGORIES OF ASSETS E/OC C RO V PD

ü ü ü
a Purchased under Concessional duty schemes etc
Assets related to Scientific Research . Is the entity registered
with the Department of Science and technology - Government of
b India - claim of weighted deduction
c Assets given on Lease
d Assets taken on Lease and treatment of lease equalisation reserve

L DEFERRED TAXATION E/OC C RO V PD
Ensure that the deferred tax in relation to depreciation has been
a properly applied
M REVIEW OF CAPITAL WORK IN PROGRESS E/OC C RO V PD
ü ü ü
Review all entries in CWIP and ensure that they reflect genuine
a advances / uncapitalised items and are not impaired
Review all long pending items in Capital Work in progress and
b obtain reasons for the same

ILLUSTRATIVE WORKING Enter the
PLEASE CHECK BEFORE YOU Cost as
USE TO REAL LIFE CLIENT capitalised
SITUATIONS Value here
ILLUSTRATIVE WORKING
PLEASE CHECK BEFORE YOU
USE TO REAL LIFE CLIENT
SITUATIONS
SITUATIONS
Illustration : Plant and Machinery
For Info Only

Asset type Date Date of Cap Rate applied Years elapsed Gross Block
P&M 1-Apr-14 15-Jun-98 4.75% 15.80 1,000,000
P&M 1-Apr-14 15-Jun-99 4.75% 14.80 1,000,000
P&M 1-Apr-14 14-Jun-00 4.75% 13.80 1,000,000
P&M 1-Apr-14 14-Jun-01 4.75% 12.80 1,000,000
P&M 1-Apr-14 14-Jun-02 4.75% 11.80 1,000,000
P&M 1-Apr-14 14-Jun-03 4.75% 10.80 1,000,000
P&M 1-Apr-14 28-Jul-04 4.75% 9.68 1,000,000
P&M 1-Apr-14 28-Jul-05 4.75% 8.68 1,000,000
P&M 1-Apr-14 28-Jul-06 4.75% 7.68 1,000,000
P&M 1-Apr-14 28-Jul-07 4.75% 6.68 1,000,000
P&M 1-Apr-14 27-Jul-08 4.75% 5.68 1,000,000
P&M 1-Apr-14 27-Jul-09 4.75% 4.68 1,000,000
P&M 1-Apr-14 8-Aug-10 4.75% 3.65 1,000,000
P&M 1-Apr-14 8-Aug-11 4.75% 2.65 1,000,000
P&M 1-Apr-14 7-Aug-12 4.75% 1.65 1,000,000
P&M 1-Apr-14 7-Aug-13 4.75% 0.65 1,000,000
P&M 1-Apr-14 1-Apr-14 1,000,000
Enter the Enter the If the asset to be
accumulated Net Block depreciated was
depreciation Value here acquired before
Value here the
commencement
of the new Act,
the Net Block is
to be considered
for depreciation
31.3.2014 Value to
Years Annual Dep Dep upto Net Block be depreciated
20.00 47,500 750,630 249,370 249,370
20.00 47,500 703,130 296,870 296,870
20.00 47,500 655,630 344,370 344,370
20.00 47,500 608,130 391,870 391,870
20.00 47,500 560,630 439,370 439,370
20.00 47,500 513,130 486,870 486,870
20.00 47,500 459,774 540,226 540,226
20.00 47,500 412,274 587,726 587,726
20.00 47,500 364,774 635,226 635,226
20.00 47,500 317,274 682,726 682,726
20.00 47,500 269,774 730,226 730,226
20.00 47,500 222,274 777,726 777,726
20.00 47,500 173,212 826,788 826,788
20.00 47,500 125,712 874,288 874,288
20.00 47,500 78,212 921,788 921,788
20.00 47,500 30,712 969,288 969,288
1,000,000
The number If a technical If there is a The residual The residual
of years as advise has technical value is value as per
precribed by been received advise that 5% as per Tech advise
CA 2013 for for the useful the CA 2013 can be
the particular life enter the management enter this enter this
cateogry of number of has decided to in the boxed in the boxed
assets is to be years here follow for cell below cell below
entered here else you can determining else the value
leave a blank the number itself can be
or enter the of years, the entered
CA 2013 tech advice
years years to be
considered
else CA 2013
will be considered
5%
2013 Act Tech Adv Years to be 2013 Act Tech Adv
No of Years No of Years considered Res Val 5% Res Val
15.00 12.00 12.00 50,000 20,000.00
15.00 12.00 12.00 50,000 20,000.00
15.00 12.00 12.00 50,000 20,000.00
15.00 12.00 12.00 50,000 20,000.00
15.00 12.00 12.00 50,000 20,000.00
15.00 12.00 12.00 50,000 20,000.00
15.00 12.00 12.00 50,000 20,000.00
15.00 12.00 12.00 50,000 20,000.00
15.00 12.00 12.00 50,000 20,000.00
15.00 12.00 12.00 50,000 20,000.00
15.00 12.00 12.00 50,000 20,000.00
15.00 12.00 12.00 50,000 20,000.00
15.00 12.00 12.00 50,000 20,000.00
15.00 12.00 12.00 50,000 20,000.00
15.00 12.00 12.00 50,000 20,000.00
15.00 12.00 12.00 50,000 20,000.00
13.00 12.00 12.00 50,000 20,000.00
If there is a This is the If the number If there are
technical number of of years no
advise that years since elapsed has remaining
the the date of already years, then
management acquisition exceeded the the entire
has decided to upto life as per CA Net Block
follow for April 1, 2014 2013 this should be
determining For assets value will be written off
the Residual capitalised zero else except for
value the on or after there will be a the residual
tech advice April 1, 2014 remaining life value, else
years to be the new CA for this we the rate
considered Act will apply use the years as derived
else CA 2013 and no to be in the
will be considered transitional considered previous
working will column which column
apply is either the is used to
This is illustr CA 13 useful calculate the
in the last life or the depreciation
row technical for the year
advise useful
Final Years No of years Cal Dep Net Block Cal Dep

Resdl Val Elapsed Remaining Annual 2015-16
20,000 15.80 - 229,370 20,000 -
20,000 14.80 - 276,870 20,000 -
20,000 13.80 - 324,370 20,000 -
20,000 12.80 - 371,870 20,000 -
20,000 11.80 0.20 419,370 20,000 -
20,000 10.80 1.20 389,949 96,921 389,949
20,000 9.68 2.32 224,182 316,044 224,182
20,000 8.68 3.32 170,974 416,752 170,974
20,000 7.68 4.32 142,395 492,831 142,395
20,000 6.68 5.32 124,560 558,166 124,560
20,000 5.68 6.32 112,368 617,858 112,368
20,000 4.68 7.32 103,507 674,219 103,507
20,000 3.65 8.35 96,582 730,206 96,582
20,000 2.65 9.35 91,334 782,953 91,334
20,000 1.65 10.35 87,100 834,687 87,100
20,000 0.65 11.35 83,612 885,675 83,612
20,000 - 12.00 81,667 918,333 81,667
Final Dep Final NB Cal Dep Final Dep Final NB Cal Dep Final Dep
2015-16 2015-16 2016-17 2016-17 2016-17 2019-20 2019-20
- 20,000 - - 20,000 - -
- 20,000 - - 20,000 - -
- 20,000 - - 20,000 - -
- 20,000 - - 20,000 - -
- 20,000 - - 20,000 - -
76,921 20,000 - - 20,000 - -
224,182 91,861 224,182 71,861 20,000 - -
170,974 245,779 170,974 170,974 74,805 170,974 54,805
142,395 350,435 142,395 142,395 208,040 142,395 142,395
124,560 433,607 124,560 124,560 309,047 124,560 124,560
112,368 505,490 112,368 112,368 393,123 112,368 112,368
103,507 570,713 103,507 103,507 467,206 103,507 103,507
96,582 633,624 96,582 96,582 537,043 96,582 96,582
91,334 691,619 91,334 91,334 600,285 91,334 91,334
87,100 747,587 87,100 87,100 660,486 87,100 87,100
83,612 802,063 83,612 83,612 718,450 83,612 83,612
81,667 836,667 81,667 81,667 755,000 81,667 81,667
Final NB
2019-20
20,000
20,000
20,000
20,000
20,000
20,000
20,000
20,000
65,645
184,487
280,755
363,699
440,461
508,951
573,386
634,838
673,333
CASE 1
The New Companies Act 2013 required Depreciation to be reworked based on remaining useful life of the assets
workings . The formula ( power ) as well as the workings for reaching the Residual Value for Rs 20000 is illustrate
Year Year Year Cost Rate Deprecn

1 2007 - 2008 1,000,000 13.91% 139,100
2 2008 - 2009 860,900 13.91% 119,751
3 2009 - 2010 741,149 13.91% 103,094
4 2010 - 2011 638,055 13.91% 88,753
5 2011 - 2012 549,302 13.91% 76,408
6 2012 - 2013 472,894 13.91% 65,780
7 2013 - 2014 407,114 13.91% 56,630
Transitional Depreciation
2014 - 2015 Years Lapsed

Years as per CA 13
Years remaining
Years remaining as per Tech Advice
Residual value - CA 13
Residual value as per Tech advise
Depreciation Working
Value to be depreciated
Years to be considered
Residual value to be considered
Rate to be applied
8 2014 - 2015 350,485 30.09% 105,458

9 2015 - 2016 245,027 30.09% 73,726
10 2016 - 2017 171,301 30.09% 51,543
11 2017 - 2018 119,758 30.09% 36,034
12 2018 - 2019 83,724 30.09% 25,192
13 2019 - 2020 58,532 30.09% 17,612
14 2020 - 2021 40,920 30.09% 12,313
15 2021 - 2022 28,608 30.09% 8,608
CASE 2
aining useful life of the assets . The below is the logic for WDV
Value for Rs 20000 is illustrated
WDV Cost Rate Deprecn WDV

860,900 1,000,000 13.91% 139,100 860,900
741,149 860,900 13.91% 119,751 741,149
638,055 741,149 13.91% 103,094 638,055
549,302 638,055 13.91% 88,753 549,302
472,894 549,302 13.91% 76,408 472,894
407,114 472,894 13.91% 65,780 407,114
350,485 407,114 13.91% 56,630 350,485
7 7
15 15
8 8
8 7
50,000 50,000
50,000 20,000
350,485 350,485
8 7
20,000 20,000
30.1% 33.57%
245,027 350,485 33.57% 117,672 232,812

171,301 232,812 33.57% 78,165 154,648
119,758 154,648 33.57% 51,922 102,726
83,724 102,726 33.57% 34,489 68,237
58,532 68,237 33.57% 22,910 45,327
40,920 45,327 33.57% 15,218 30,109
28,608 30,109 33.57% 10,109 20,000
20,000
ILLUSTRATIVE WORKING Enter the For assets
PLEASE CHECK BEFORE YOU Cost as existing
USE TO REAL LIFE CLIENT capitalised as at
SITUATIONS Value here 4/1/2014
enter
4/1/2014
SITUATIONS
SITUATIONS
Illustration
CA 2013
migraton
Asset type Asset Description Supplier Invoice Date date
P&M 1-Apr-14
P&M 1-Apr-14
P&M 1-Apr-14
P&M 1-Apr-14
P&M 1-Apr-14
P&M 1-Apr-14
P&M 1-Apr-14
P&M 1-Apr-14
P&M 1-Apr-14
P&M 1-Apr-14
P&M 1-Apr-14
P&M 1-Apr-14
P&M 1-Apr-14
P&M 1-Apr-14
P&M 1-Apr-14
P&M 1-Apr-14
P&M
P&M
P&M
P&M
P&M
P&M
P&M
Actual The rate under Enter the Enter the Enter the
Date of Cos Act 1956 Cost as accumulated Net Block
Capitalisation to be capitalised depreciation Value here
entered here Value here Value here
for all assets
CA 1956 31.3.2014
Date of Cap Rate applied Gross Block Dep upto Net Block
1-Apr-98 13.91% 1,000,000 908,958 91,042
1-Apr-99 13.91% 1,000,000 894,248 105,752
1-Apr-00 13.91% 1,000,000 877,161 122,839
1-Apr-01 13.91% 1,000,000 857,313 142,687
1-Apr-02 13.91% 1,000,000 834,258 165,742
1-Apr-03 13.91% 1,000,000 807,478 192,522
1-Apr-04 13.91% 1,000,000 776,372 223,628
1-Apr-05 13.91% 1,000,000 740,239 259,761
1-Apr-06 13.91% 1,000,000 698,268 301,732
1-Apr-07 13.91% 1,000,000 649,515 350,485
1-Apr-08 13.91% 1,000,000 592,886 407,114
1-Apr-09 13.91% 1,000,000 527,106 472,894
1-Apr-10 13.91% 1,000,000 450,698 549,302
1-Apr-11 13.91% 1,000,000 361,945 638,055
31-Mar-12 13.91% 1,000,000 258,851 741,149
31-Mar-13 13.91% 1,000,000 139,100 860,900
15-Apr-14 1,000,000
15-Apr-15 1,000,000
15-Apr-16 1,000,000
15-Apr-17 1,000,000
15-Apr-18 1,000,000
15-Apr-19 1,000,000
15-Apr-20 1,000,000
If the asset to be The number If a technical If there is a The residual
depreciated was of years as advise has technical value is
acquired before precribed by been received advise that 5% as per
the CA 2013 for for the useful the CA 2013
commencement the particular life enter the management enter this
of the new Act, cateogry of number of has decided to in the boxed
the Net Block is assets is to be years here follow for cell below
to be considered entered here else you can determining
for depreciation leave a blank the number
or enter the of years, the
CA 2013 tech advice
years years to be
considered
else CA 2013
will be considered
5%
Value to 2013 Act Tech Adv Years to be 2013 Act
be depreciated No of Years No of Years considered Res Val 5%
91,042 15.00 12.00 12.00 50,000
105,752 15.00 12.00 12.00 50,000
122,839 15.00 12.00 12.00 50,000
142,687 15.00 12.00 12.00 50,000
165,742 15.00 12.00 12.00 50,000
192,522 15.00 12.00 12.00 50,000
223,628 15.00 12.00 12.00 50,000
259,761 15.00 12.00 12.00 50,000
301,732 15.00 12.00 12.00 50,000
350,485 15.00 12.00 12.00 50,000
407,114 15.00 12.00 12.00 50,000
472,894 15.00 12.00 12.00 50,000
549,302 15.00 12.00 12.00 50,000
638,055 15.00 12.00 12.00 50,000
741,149 15.00 12.00 12.00 50,000
860,900 15.00 12.00 12.00 50,000
1,000,000 13.00 12.00 12.00 50,000
1,000,000 13.00 12.00 12.00 50,000
1,000,000 3.00 3.00 3.00 50,000
1,000,000 3.00 3.00 3.00 50,000
1,000,000 3.00 3.00 3.00 50,000
1,000,000 3.00 3.00 3.00 50,000
1,000,000 3.00 3.00 3.00 50,000
The residual If there is a This is the If the number If there are
value as per technical number of of years no
Tech advise advise that years since elapsed has remaining
can be the the date of already years, then
enter this management acquisition exceeded the the entire
in the boxed has decided to upto life as per CA Net Block
cell below follow for April 1, 2014 2013 this should be
else the value determining For assets value will be written off
itself can be the Residual capitalised zero else except for
entered value the on or after there will be a the residual
tech advice April 1, 2014 remaining life value, else
years to be the new CA for this we the Power
considered Act will apply use the years formula
else CA 2013 and no to be should be
will be considered transitional considered calculated
working will column which
apply is either the
This is illustr CA 13 useful
in the last life or the
row technical
Tech Adv Final Years No of years Rate Memo Days

Res Val Resdl Val Elapsed Remaining to be Applied 3/31/2015
20,000.00 20,000 16.01 - 365
20,000.00 20,000 15.01 - 365
20,000.00 20,000 14.01 - 365
20,000.00 20,000 13.01 - 365
20,000.00 20,000 12.01 - 365
20,000.00 20,000 11.01 0.99 89.80% 365
20,000.00 20,000 10.01 1.99 70.19% 365
20,000.00 20,000 9.01 2.99 57.52% 365
20,000.00 20,000 8.01 3.99 49.31% 365
20,000.00 20,000 7.01 4.99 43.64% 365
20,000.00 20,000 6.00 6.00 39.50% 365
20,000.00 20,000 5.00 7.00 36.37% 365
20,000.00 20,000 4.00 8.00 33.92% 365
20,000.00 20,000 3.00 9.00 31.95% 365
20,000.00 20,000 2.00 10.00 30.33% 365
20,000.00 20,000 1.00 11.00 28.97% 365
20,000.00 20,000 - 12.00 27.82% 350
20,000.00 20,000 - 12.00 27.82% -
20,000.00 20,000 - 3.00 72.86% -
20,000.00 20,000 - 3.00 72.86% -
20,000.00 20,000 - 3.00 72.86% -
20,000.00 20,000 - 3.00 72.86% -
20,000.00 20,000 - 3.00 72.86% -
If there are Net Block
no is the amount
remaining to be depreciated
years, then less the
the entire depreciation
Net Block for the year
should be
written off
except for
the residual
value, else
the rate
as derived
in the
previous
column
is used to
calculate the
depreciation
for the year
Cal Dep Derived NB Final Dep Final NB Treatment

2014-15 2014-15 2014-15 for 2014-15
71,042 20,000 71,042 20,000 PL or reserve
85,752 20,000 85,752 20,000 PL or reserve
102,839 20,000 102,839 20,000 PL or reserve
122,687 20,000 122,687 20,000 PL or reserve
145,742 20,000 145,742 20,000 PL or reserve
172,894 19,628 172,894 19,628 PL only
156,973 66,656 156,973 66,656 PL only
149,426 110,335 149,426 110,335 PL only
148,775 152,957 148,775 152,957 PL only
152,939 197,546 152,939 197,546 PL only
160,793 246,321 160,793 246,321 PL only
171,982 300,912 171,982 300,912 PL only
186,306 362,996 186,306 362,996 PL only
203,830 434,225 203,830 434,225 PL only
224,762 516,386 224,762 516,386 PL only
249,427 611,473 249,427 611,473 PL only
266,763 733,237 266,763 733,237 PL only
- - - -
- - - -
- - - -
- - - -
- - - -
- - - -
3/31/2015 TO 3/31/2016
Disposal Existing Base Days Days in Opneing NB
2015-16 for 2015-16 Use Use or Add Value
O 365 365 20,000
O 365 365 20,000
O 365 365 20,000
O 365 365 20,000
O 365 365 20,000
O 365 365 19,628
O 365 365 66,656
O 365 365 110,335
O 365 365 152,957
O 365 365 197,546
O 365 365 246,321
O 365 365 300,912
30-Jun-15 O 365 275 362,996
O 365 365 434,225
O 365 365 516,386
O 365 365 611,473
O 365 365 733,237
N 365 351 1,000,000
- - - -
- - - -
- - - -
- - - -
- - - -
2015-16 2015-16
Cal Dep Derived NB Final Dep Sale Profit
2015-16 2015-16 2015-16 Value or loss
- 20,000 - -
- 20,000 - -
- 20,000 - -
- 20,000 - -
- 20,000 - -
- 19,628 -372 -
46,788 19,868 46,656 -
63,470 46,865 63,470 -
75,419 77,539 75,419 -
86,202 111,344 86,202 -
97,286 149,035 97,286 -
109,436 191,476 109,436 -
92,759 270,237 92,759 125,000 145,237
138,715 295,510 138,715 -
156,600 359,786 156,600 -
177,161 434,312 177,161 -
203,984 529,253 203,984 -
267,526 732,474 267,526 -
- - -
- - -
- - -
- - -
- - -
3/31/2016 TO 3/31/2017
Final NB Disposal Existing Base Days Days in
2015-16 2016-17 2016-17 Use Use
20,000 O 365 365
20,000 O 365 365
20,000 O 365 365
20,000 O 365 365
20,000 O 365 365
20,000 O 365 365
20,000 O 365 365
46,865 O 365 365
77,539 O 365 365
111,344 O 365 365
149,035 O 365 365
191,476 O 365 365
- O 365 365
295,510 O 365 365
359,786 30-Jun-16 O 365 274
434,312 O 365 365
529,253 O 365 365
732,474 O 365 365
- N 350 350
- - - -
- - - -
- - - -
- - - -
2015-16 2015-16
Opneing NB Cal Dep Derived NB Final Dep Sale
or Add Value 2016-17 2016-17 2016-17 Value
20,000 - 20,000 -
20,000 - 20,000 -
20,000 - 20,000 -
20,000 - 20,000 -
20,000 - 20,000 -
20,000 - 20,000 -
20,000 - 20,000 -
46,865 26,959 19,906 26,865
77,539 38,232 39,307 38,232
111,344 48,587 62,758 48,587
149,035 58,862 90,173 58,862
191,476 69,636 121,840 69,636
- - - - -
295,510 94,402 201,108 94,402
359,786 81,907 277,879 81,907 100,000
434,312 125,832 308,480 125,832
529,253 147,236 382,017 147,236
732,474 203,772 528,703 203,772
1,000,000 698,617 301,383 698,617
- - - -
- - - -
- - - -
- - - -
3/31/2017 TO 3/31/2018
Profit Final NB Disposal Existing Base Days
or loss 2016-17 2019-20 2019-20 Use
- 20,000 O 365
- 20,000 O 365
- 20,000 O 365
- 20,000 O 365
- 20,000 O 365
- 20,000 O 365
- 20,000 O 365
- 20,000 O 365
- 39,307 O 365
- 62,758 O 365
- 90,173 O 365
- 121,840 O 365
- - O 365
- 201,108 O 365
177,879 - O 365
- 308,480 O 365
- 382,017 O 365
- 528,703 O 365
- 301,383 O 365
- - N 350
- - - -
- - - -
- - - -
2019-20 2019-20
Days in Opneing NB Cal Dep Derived NB Final Dep
Use or Add Value 2019-20 2019-20 2019-20
365 20,000 - 20,000 -
365 20,000 - 20,000 -
365 20,000 - 20,000 -
365 20,000 - 20,000 -
365 20,000 - 20,000 -
365 20,000 - 20,000 -
365 20,000 - 20,000 -
365 20,000 - 20,000 -
365 39,307 19,381 19,926 19,307
365 62,758 27,385 35,373 27,385
365 90,173 35,614 54,558 35,614
365 121,840 44,311 77,529 44,311
365 - - - -
365 201,108 64,245 136,863 64,245
365 - - - -
365 308,480 89,375 219,104 89,375
365 382,017 106,276 275,741 106,276
365 528,703 147,083 381,620 147,083
365 301,383 219,575 81,808 219,575
350 1,000,000 698,617 301,383 698,617
- - - - -
- - - - -
- - - - -
3/31/2018 TO
Sale Profit Final NB Disposal Existing
Value or loss 2019-20 2018-19 2018-19
- 20,000 O
- 20,000 O
- 20,000 O
- 20,000 O
- 20,000 O
- 20,000 O
- 20,000 O
- 20,000 O
- 20,000 O
- 35,373 O
- 54,558 O
- 77,529 O
- - O
- 136,863 O
- - O
- 219,104 O
- 275,741 O
- 381,620 O
- 81,808 O
- 301,383 O
- - N
- - -
- - -
3/31/2019 2018-19 2018-19
Base Days Days in Opneing NB Cal Dep Derived NB
Use Use or Add Value 2018-19 2018-19
365 365 20,000 - 20,000
365 365 20,000 - 20,000
365 365 20,000 - 20,000
365 365 20,000 - 20,000
365 365 20,000 - 20,000
365 365 20,000 - 20,000
365 365 20,000 - 20,000
365 365 20,000 - 20,000
365 365 20,000 - 20,000
365 365 35,373 15,435 19,937
365 365 54,558 21,548 33,010
365 365 77,529 28,196 49,333
365 365 - - -
365 365 136,863 43,722 93,142
365 365 - - -
365 365 219,104 63,481 155,624
365 365 275,741 76,710 199,031
365 365 381,620 106,165 275,455
365 365 81,808 59,602 22,206
365 365 301,383 219,575 81,808
350 350 1,000,000 698,617 301,383
- - - - -
- - - - -
3/31/2019
Final Dep Sale Profit Final NB Disposal
2018-19 Value or loss 2018-19 2019-20
- - 20,000
- - 20,000
- - 20,000
- - 20,000
- - 20,000
- - 20,000
- - 20,000
- - 20,000
- - 20,000
15,373 - 20,000
21,548 - 33,010
28,196 - 49,333
- - -
43,722 - 93,142
- - -
63,481 - 155,624
76,710 - 199,031
106,165 - 275,455
59,602 - 22,206
219,575 - 81,808
698,617 - 301,383
- - -
- - -
TO 3/30/2020 2019-20
Existing Base Days Days in Opneing NB Cal Dep
2019-20 Use Use or Add Value 2019-20
O 365 365 20,000 -
O 365 365 20,000 -
O 365 365 20,000 -
O 365 365 20,000 -
O 365 365 20,000 -
O 365 365 20,000 -
O 365 365 20,000 -
O 365 365 20,000 -
O 365 365 20,000 -
O 365 365 20,000 -
O 365 365 33,010 13,038
O 365 365 49,333 17,942
O 365 365 - -
O 365 365 93,142 29,755
O 365 365 - -
O 365 365 155,624 45,089
O 365 365 199,031 55,370
O 365 365 275,455 76,630
O 365 365 22,206 16,178
O 365 365 81,808 59,602
O 365 365 301,383 219,575
N 350 350 1,000,000 698,617
- - - - -
2019-20
Derived NB Final Dep Sale Profit Final NB
2019-20 2019-20 Value or loss 2019-20
20,000 - - 20,000
20,000 - - 20,000
20,000 - - 20,000
20,000 - - 20,000
20,000 - - 20,000
20,000 - - 20,000
20,000 - - 20,000
20,000 - - 20,000
20,000 - - 20,000
20,000 - - 20,000
19,972 13,010 - 20,000
31,392 17,942 - 31,392
- - - -
63,387 29,755 - 63,387
- - - -
110,535 45,089 - 110,535
143,661 55,370 - 143,661
198,824 76,630 - 198,824
6,028 2,206 - 20,000
22,206 59,602 - 22,206
81,808 219,575 - 81,808
301,383 698,617 - 301,383
- - - -
3/30/2020 TO 3/30/2021
Disposal Existing Base Days Days in Opneing NB
2020-21 2020-21 Use Use or Add Value
O 365 365 20,000
O 365 365 20,000
O 365 365 20,000
O 365 365 20,000
O 365 365 20,000
O 365 365 20,000
O 365 365 20,000
O 365 365 20,000
O 365 365 20,000
O 365 365 20,000
O 365 365 20,000
O 365 365 31,392
O 365 365 -
O 365 365 63,387
O 365 365 -
O 365 365 110,535
O 365 365 143,661
O 365 365 198,824
O 365 365 20,000
O 365 365 22,206
O 365 365 81,808
O 365 365 301,383
N 349 349 1,000,000
2020-21 2020-21
Cal Dep Derived NB Final Dep Sale Profit
2020-21 2020-21 2020-21 Value or loss
- 20,000 - -
- 20,000 - -
- 20,000 - -
- 20,000 - -
- 20,000 - -
- 20,000 - -
- 20,000 - -
- 20,000 - -
- 20,000 - -
- 20,000 - -
- 20,000 - -
11,417 19,975 11,392 -
- - - -
20,249 43,138 20,249 -
- - - -
32,025 78,510 32,025 -
39,966 103,695 39,966 -
55,312 143,512 55,312 -
- 20,000 - -
16,178 6,028 2,206 -
59,602 22,206 59,602 -
219,575 81,808 219,575 -
696,621 303,379 696,621 -
Final NB
2020-21
20,000
20,000
20,000
20,000
20,000
20,000
20,000
20,000
20,000
20,000
20,000
20,000
-
43,138
-
78,510
103,695
143,512
20,000
20,000
22,206
81,808
303,379
Component Investments C Completeness
Accounting Standards and Auditing Standards , Schedule III,
References Companies Act - Section 186 PD Presentation and disclosure
Year 2019-20
1 Obtain the schedule of Investments held

2 Reconcile to the General Ledger Account wise ü
Does the company maintain an Investment Register. Are the
totals of such registers reconciled to the Balance as per the
3 General ledger ü
Trace opening balances in GL accounts to PY audited closing
4 balances
Review the Delegation of Powers to understand the authority
5 levels in respect of purchases, sales , write offs etc
Is there any change in the Accounting Policy relating to
Investments. Has it been properly treated along with notes on
6 impact etc
Have we verified investments physically ( in cases where such
7 investments are backed by original certificates (no copies) etc ) ü ü
In case of investments held in a de materialised form, have they

been confirmed by the Custodians. If so, check the authenticity
of the confirmations by an independent circularisation process
rather than depending on the statements as produced by the
8 management ü ü
Any restrictions on sale of investments needs to be disclosed by
9 way of a note to the accounts ü
B INVESTMENTS & DISPOSALS DURING THE YAR E/OC C RO V PD

1 Obtain the total list of additions during the year
Ensure compliance with Section 186 of the Companies Act in
2 relation to loans & investments including :
a. Limits on upto two layers of investments
b. Overall limits of 60% as provided in Section 186 (2)
c. Share holders resolution
d. Rate of interest to be charged on loans given
Have all costs associated with purchase of investments been
3 considered correctly ( Eg. Brokerage, duties, fees etc ) ü
Ensure compliance with Section 143 (1) (c) - Where the company
not being an investment company or a banking company, whether
so much of the assets of the company as consist of shares,
debentures and other securities have been sold at a price less than
4 that at which they were purchased by the company;
In case of sale of investments trace the realisation of sale
5 proceeds and ensure profit or loss on sale is accounted properly ü
C ACCRETIONS TO INVESTMENTS E/OC C RO V PD

Have accretions to investments by way of rights, bonus issues
1 and conversions if any , been properly considered ü
Have accretions to investments by way of rights, bonus issues
2 and conversions if any , been independently confirmed ü
D SCHEDULE III DISCLOSURE REQUIREMENTS E/OC C RO V PD

ü
Investments are classified as current and non current as
1 appropriate
Non-current investments shall be classified as trade investments
a and other investments and further classified as:-
Year 2019-20
The investments shall be classified as Investment property,

Equity, Preference shares, Government or Trust Securities,
Debentures or bonds, Mutual funds or investment in partnership
b firms or other investments
Investments carried at other than at cost should be separately
c stated specifying the basis for valuation thereof.
The following shall also be disclosed: (a) Aggregate amount of
quoted investments and market value thereof; (b) Aggregate
amount of unquoted investments; (c) Aggregate provision for
d diminution in value of investments
Current investments are disclosed under Current Assets with
2 further classifications as below
The investments shall be classified as Equity, Preference shares,
Government or Trust Securities, Debentures or bonds, Mutual
a funds or investment in partnership firms or other investments
The following shall also be disclosed: (a) The basis of valuation

of individual investments (b) Aggregate amount of quoted
investments and market value thereof; (c) Aggregate amount of
unquoted investments; (d) Aggregate provision made for
b diminution in value of investments
Under each classification, details shall be given of names of the

bodies corporate (indicating separately whether such bodies are
(i) subsidiaries, (ii) associates, (iii) joint ventures, or (iv)
controlled special purpose entities) in whom investments have
been made and the nature and extent of the investment so made in
3 each such body corporate
4 Partly paid investments shall also be indicated properly
D INCOME FROM INVESTMENTS E/OC C RO V PD
1 Have all incomes been accrued correctly ü
Have tax deductions, if any been properly considered and
2 accounted for
E VALUATION
Have current investments been valued at lower of cost or market
1 value ü
In case of non quoted investments whether based on the latest
financial statements of the investee is there any dimunition in
2 carrying value
In case of dimunition in value of long term investments ( not
being temporary in nature ), have these been charged off to
3 revenue ü
F INVESTMENTS - OWN NAME - SEC 187

All investments made or held by a company in any property,
security or other asset shall be made and held by it in its own
1 name: ü
Provided that the company may hold any shares in its subsidiary
company in the name of any nominee or nominees of the
company, if it is necessary to do so, to ensure that the number of
members of the subsidiary company is not reduced below the
2 statutory limit.
OTHERS
Year 2019-20

Component Inventories C Completeness
References Companies Act - Section 186, CARO PD Presentation and disclosure
Year 2019-20

Ensure that the opening balance of inventories is reconciled to the
1 closing audited accounts
Obtain the inventory movement ledger for all categories of
2 inventories for the year
Obtain an understanding of various categories of inventory - Raw
Material, Packing Material, Work in Progress Finished Goods,
3 Stores and Spares etc
Ensure that there is adequate Segregation of duties in relation to
4 the following functions associated with inventory
a Purchase Requisition
b Purchase Order
c Quantity Certification
d Recording of Inventory receipts and issues
e Invoice processing
f Payment processing
Stock transfers should always be accounted by 2 persons , system
should not permit the same person to transfer inventory from one
g location toan
In case of any issues in relating to basic controls over issues, the
same should be properly cognised for in terms of True and Fair,
h Fraud , caro OR IFCOFR reporting
B CONTROL OVER RECEIPTS E/OC C RO V PD
From the Inventory movement register, identify movement types
1 pertaining to receipts and check
a. With reference to gate records if inventory was received
In case of RM receipts to production area, ensure that the same
are backed by indents and whether proper controls exist to ensure
b. that such items are delivered to the shop floor
c. Backed by senders documents
d. Check if goods can be received without Purchase orders
Recorded at correct value including costs associated with such
e purchases and at Purchase Order Rate
f Recorded on correct date
g Recorded in the relevant head / code of inventory
h The transaction has been authorised
i Quality processes have been completed before accounting
j Returns have been properly considered
2 Fraud , caro OR IFCOFR reporting
C CONTROL OVER ISSUES E/OC C RO V PD
From the Inventory movement register, identify movement types
1 pertaining to issue of inventory and check for
a. With reference to gate / production records
c. Backed by senders documents
d. Check if goods can be received without Purchase orders
Recorded at correct value including costs associated with such
e purchases
f Recorded on correct date
g Recorded in the relevant head / code of inventory
h The transaction has been authorised
i Quality processes have been completed before accounting
j Returns have been properly considered
Year 2019-20

D INVENTORY CUSTODY E/OC C RO V PD
Review protocols relating to inventory storage and adherence to
1 stacking norms
In case of any issues in relating to basic controls or issues, the
D REVIEW OF INVENTORY LEDGERS E/OC C RO V PD
Review inventory movement ledgers for the year ( example MB
51 from SAP or ledgers from Tally to identify any unusual
1 inventory movements
All transactions shoud be as per the respective authorisations as
2 implemented in the entity
a Purchases
b Stock Transfers.
c Sales
d Purchase Returns
e Sales returns
E WRITE OFFS AND INVENTORY ADJUSTMENTS
Any unusual inventory movement entries such as recording of
excess / shortage write offs, damaged stock disposals etc should
1 be made only by higher levels of authority
F INVENTORY VERIFICATION
1 Has inventory been physically verified as at year end
2 Have major differences been explained
3 Have all differences been duly adjusted in the books of accounts
Have such adjustment entries been passed with the approval of
4 the relevant authority
5 Have verification papers been duly signed
Have we as auditors observed the count. Any material
6 observations in relation to such verification
7 Has inventory lying with third parties been confirmed
In respect of goods in transit, have the subsequent receipts of the
8 same been traced
Has all inventory finally considered as closing stock been traced
9 to the physical verification papers
G INVENTORY VALUATION
Ensure That the method adopted for valuation of various types of
a inventories is apprpriate
- Raw Materials
- Work in Progress
- Finished Goods
- Stores and Spares
- Others
b Ensure consistency in basis applied vis a vis the previous period
c Ensure that inventory valuation is in accordance with AS 2
All costs incurred in bringing inventory to its present condition
d are included in the valuation
Review if there is any impairment to the inventory value due to
e post balance sheet events
H INVENTORY PROVISIONS
a Adequate Provisions are carried out in the books for
- Slow Moving inventory
Year 2019-20
- Non Moving inventory

- Obsolete inventory
- Damaged Inventory
Number as 13 onwards
013_Inventories
Component Revenues and Receivables C Completeness
Year 2019-20

ü
Ensure that the opening balance of receivables is reconciled to
1 the closing audited accounts
Obtain the debtors ledger and understand all the transaction types
in the ledger - sales, sales returns, collections, debit notes, credit
2 notes which have been booked for various reasons
Obtain an understanding of various categories of sales - cash ,
3 credit, sale or return,
Ensure that there is adequate Segregation of duties in relation to

4 the following functions associated with revenues and receivables
a Master Data Maintenance
b Sales order processing
c Invoicing
d Sales returns accounting
e Despatch
f Collection accounting
g Debit / credit note processing
h Bad debt write offs
B CONTROLS OVER MASTERS E/OC C RO V PD
Is Master data accurate and complete in relation to Product
master, price master, tax master, customer master, location
1 masters etc
Do adequate controls exist over unauthorised creation and
2 modification of master data in terms of audit trails
C ORDER PROCESSING E/OC C RO V PD
Do adequate controls exist over order processing and to ensure
1 that sales are booked only on the basis of valid customer orders
D INVOICING E/OC C RO V PD
ü ü
1 Do adequate controls exist to ensure that invoices are raised
a On the correct Customer
b For the Correct product / service
c For the correct rate / unit or agreed value
d Taxes and Duties are recognised correctly
e Formats of invoices are in compliance with the law
f Accurately computed in terms of final value
g Recognised in the correct head of account
E DESPATCH AND SALES BOOKING E/OC C RO V PD
ü
Ensure that all goods invoiced are despatched and Lorry receipts /
a delivery evidence is available
For year end cut offs , ensure that adequate proofs of LR etc exist
b to ensure that sales are booked only for goods despatched
Sales income should be booked only after all conditions relating
c to the sale are completed
E COLLECTION ACCOUNTING E/OC C RO V PD
ü
1 All collections should be accounted
a Promptly
b In the correct account
c Matched to the relevant invoices, based on customer advice
F DEBIT AND CREDIT NOTES E/OC C RO V PD
ü
Year 2019-20
1 Ensure that debit notes and credit notes are accounted based on
a Proper Rationale for the same
b Correct value
c Approved by a relevant authority
d Backed by written approvals for the same
Ensure that debit and credit notes are not accounted back to back
2 to improve the aging of debts outstanding
G BALANCE CONFIRMATIONS E/OC C RO V PD
ü
1 Circularise Balance confirmations directly to customers
Review all variances in account balances vs customer
2 confirmation and reasons therefor
Ensure that adjustment entries are booked to reflect the correct
3 position in the entity's records
Investigate all material variances and report to management for
4 appropriate action
Tabulate Value and Volume of confirmations sent, Balance
5 confirmations received as well as the discrepancies if any
If balances have not been circularised , the same may need to be
6 cognised for disclosure purposes, if felt relevant
H AGING OF RECEIVABLES E/OC C RO V PD
ü
1 Ensure that the system reports on aging are accurate
The disclosure of the aged receivables from the due date is
2 accurate
3 Test check with reference to few cases to confirm the aging
Ensure that debit and credit notes are not accounted back to back
4 to improve the aging of debts outstanding
I PROVISION FOR DOUBTFUL DEBTS E/OC C RO V PD
ü ü
Review all old receivables and consider necessary provisions for
1 the same in the financial statements
Review the subsequent collections to find out if there are any

specific bills not collected (though subsequent invoices are
2 cleared) which could indicate doubtful recovery or disputed debts
In case provisions are not adequate, have they been appropriately
reflected in the notes on accounts along with impact on Audit
3 report and opinion
I REVIEW OF LEGAL FILES E/OC C RO V PD
ü
Review all legal files of the entity to examine if any provisions
may be required on account of impairment of receivables due to
1 such legal suits
J TRADE ADVANCES FROM CUSTOMERS E/OC C RO V PD
Review all Trade advances from customers and ensure that they
do not attract the provisions of Sec 73 of the Companies Act and
the Acceptance of Deposit rules especially in respect of advances
1 not adjusted within 365 days
K FOREX RECEIVABLES - COMPLIANCES E/OC C RO V PD
ü
Ensure that restatement of forex receivables is as per the
1 accounting standard
2 Review aging of forex receivables for FEMA compliances
Year 2019-20
L CUT OFF TESTING E/OC C RO V PD

ü
Review the transactions close to the year end and subsequent to
the year end to ensure that they have been accounted in the
1 appropriate period
014_Rev and Receivables

Component CASH C Completeness
Year 2019-20

ü
Trace the opening balances of cash and bank balances to the
previous audited financial statements ( that is no change in the
1 opening TB after audit is completed )
B CONTROLS OVER RECEIPTS E/OC C RO V PD
Ensure that cash receipts receipts are properly recorded and on a
1 prompt basis
a Proper Amount
b Correct head of account
c Immediately on receipt
d Properly authorised
e Properly supported by relevant vouchers
Review if there are any large cash receipts - purpose and
f authorisation
C CONTROLS OVER PAYMENTS E/OC C RO V PD
1 Ensure that all payments are accounted

a Proper Amount
c Immediately on payment
e Properly supported by relevant vouchers and original invoices
f Acknowledged by the recipient
g Supportings are defaced after payment
Review if there are any large cash payments - purpose and
h authorisation
D CASH CUSTODY E/OC C RO V PD
ü
Ensure proper custody over cash including dual custody if
1 required by Standard Operating Procedures
2 Check the key register
Cash should be kept in a SAFE generally unless amounts usually
3 held are very small
The cash held should be within limits as prescribed. That is very
4 large balances should not be held
E CASH INSURANCE E/OC C RO V PD
ü
Ensure that cash in hand, transit cash and fidelity insurance have
a been considered and if necessary implemented
F CASH VERIFICATION E/OC C RO V PD
ü ü
1 Physically verify cash balances with reference to the Cash Book
Count, document denomination wise , reconcile particulalry if
foreign currency is held ensure it is accounted for proper
2 currency and conversion
3 Handover cash back and obtain sign off
IOU's should be reviewed and established as genuine if they form
4 part of the cash balances
In case of any differences, the same should be intimated
5 immediately
6 Obtain a Cash Certificate as at year end
Verify Cheques on hand on closing date and also ensure adequate
7 disclosures are made for the balances.
Year 2019-20
If cash and cheques on hand could not be verified on closing date

do a roll back or review subsequent deposit slips to ensure
8 existence.
G SCHEDULE III PRESENTATION AND DISCLOSURE E/OC C RO V PD
ü
Ensure that the items are properly disclosed as required under
Schedule III of the Companies Act 2013 ( see separate
a checklist )
Prepared by
……………………………………………………………
Reviewed
by…………………………………………………………..

Year 2019-20

ü
Trace the opening balances of bank balances to the previous
audited financial statements and bank confirmations of the
previous year ( that is no change in the opening TB after audit is
1 completed )
B CONTROLS OVER RECEIPTS E/OC C RO V PD
Ensure that receipts receipts are properly recorded and on a
1 prompt basis
a Proper Amount
c Immediately on receipt
All cheques received should be recorded in a Cheque Inward
2 register maintained at various locations
All inward fund transfers should be matched and reconciled and
3 accounted in relevant sender accounts
C CONTROLS OVER PAYMENTS E/OC C RO V PD
1 Ensure that all payments are accounted
a Proper Amount
c Immediately on payment
f Acknowledged by the recipient
g Supportings are defaced after payment
D BANK CONFIRMATIONS E/OC C RO V PD
ü ü
Obtain direct bank confirmations of balances etc in a standard
1 format
E BANK RECONCILIATION STATEMENTS E/OC C RO V PD
1 Prepare a schedule as under
a Bank Account reference
b Name of the Bank Account
c Balance as per books
d Balance as per bank confirmation
e Balance as per Bank statement
f Difference and reasons for difference
g BRS required (y/n). If yes whether prepared and duly approved
h review details of Cheques issued not presented
i review details ofCheque deposits not credited
j review details of Unaccounted debits in bank statement
k review details of Unaccounted credits in bank statement
l Bank Charges not accounted
m Old items ( keep a schedule of all aging items )
In cases of cheques issues, confirm if the cheque has been handed
2 over to the recipient
In case of bank charges, ensure that the same is validated with the
3 terms
NEW agreed
BANKwith the bank AND DORMANT BANK
ACCOUNTS
F ACCOUNTS E/OC C RO V PD
ü
a Obtain a list of all bank accounts
Review board approvals for all new accounts opened and
b accounts closed during the year
Year 2019-20
Review all dormant accounts, need to maintain such accounts and

check for any unusual transactions in such accounts. Review the
bank statements for the entire year for dormant accounts to
c ensure no inflow and outflow of funds (compensating)
ü
a checklist )
Prepared by
……………………………………………………………
Reviewed
by…………………………………………………………..

Component LOANS AND ADVANCES C Completeness
Year 2019-20

ü
Trace the opening balances to the previous audited financial
statements ( that is no change in the opening TB after audit is
1 completed )
Obtain a detailed schedule and break up of all loans and advances

2 and ensure thatOVER
CONTROLS the same is reconciled to the AND
DISBURSEMENTS General Ledger
B REPAYMENTS E/OC C RO V PD
All loans and advances should be backed by a policy or
1 agreements in writing
The same should be recorded in a register to track repayments on
2 a prompt basis
3 Interest on such advances should be accounted promptly
In case of any security obtained for such advances, the same shall
also be properly dealt with in accordance with the provisions of
4 the law
Controls over grant of fresh advances before settlement of old
dues especially in case of supplier advances and employee related
5 advances
C LOANS TO DIRECTORS - SEC 185 E/OC C RO V PD
Ensure Compliance with Section 185 of the Act as well as the
notification under Sec 462 for Private Limited Companies
1 Exemptions
Any violations in Sec 185 incur penalties which may be
2 appropriately considered for
D REVIEW OF ADVANCES - COMPANIES ACT 2013 E/OC C RO V PD
ü ü
Sec 143 (1) (a) :
whether loans and advances made by the company on the basis of
security have been properly secured and whether the terms on
which they have been made are prejudicial to the interests of the
a company or its members;
whether loans and advances made by the company have been
b shown as deposits
Compliance with Section 186 regarding special approvals for
c transactions exceeding certain limits
E ADVANCES TO SUPPLIERS E/OC C RO V PD
a Review contracts that approve the grant of advances
b Ensure that the advances are promptly adjusted
c Review all pending advances
Ensure that multiple supplier accounts are not created for the
same vendor thereby causing advances to be booked in one
account and payments for supplies received routed through
another account, causing the amount to be paid twice to the
d supplier
F ADVANCES TO EMPLOYEES E/OC C RO V PD
a Advances should be in accordance with the company policy
Ensure that the recoveries are regular and as per the approvals
b and that advances are promptly adjusted
c Review all pending advances
d All old advances should be adjusted before grant of new advances

G INTEREST ON ADVANCES E/OC C RO V PD
Component LOANS AND ADVANCES C Completeness
Year 2019-20
a Ensure that the interest is properly accrued on all such advances

Tax Deductions at Source by the other party should be congnised
b for and reconciled with the Form 26 AS
H PREPAID E/OC C RO V PD
a Are balances in prepaid accounts backed by valid transactions
Ensure that all prepaid balances are eligible for carry forward as
b an asset instead of charge off to income statements
I RECOVERABILITY E/OC C RO V PD
a Ensure that all advances are recoverable
J DEPOSITS E/OC C RO V PD
ü
a Obtain a schedule of deposits
Trace all balances in the schedule to deposit receipts, terms
b associated with such deposits
Non refundable deposits if any should be charged off and not
c held as recoverable balances
In case of any deposits not considered as recoverable, the same
d needs to be provisioned for in the financials
K SCHEDULE III PRESENTATION AND DISCLOSURE E/OC C RO V PD
ü
a checklist )
Prepared by
……………………………………………………………
Reviewed
by…………………………………………………………..
Component SHARE CAPITAL C Completeness
Year 2019-20

ü
1 completed )
B MOVEMENTS IN SHARE CAPITAL E/OC C RO V PD
The Authorised Share capital to be verified with reference to
1 MoA and subsequent amendments
2 All changes to the Share Capital to be reviewed with RoC filing
ISSUES OF SHARES FOR CONSIDERATION OTHER
C THAN CASH E/OC C RO V PD
ü
1 In case of above , the nature of consideration to be disclosed
D ISSUE OF SHARES FOR CASH E/OC C RO V PD
1 Ensure that consideration has actually been received
RIGHTS, BONUS, PRIVATE PLACEMENT- ISSUE OF
E ADDITIONAL SHARES E/OC C RO V PD
ü
Ensure that the Companies Act provisions have been complied
1 with - receipt, allotment and utilisation
2 Adequate disclosures are made in the financials
F SHARES ISSUED TO NON RESIDENTS E/OC C RO V PD

1 Ensure FEMA compliances and adequate disclosures ü

ü
a checklist )
b Ensure that all restrictive covenants are disclosed appropriately
c Rights of the equity holders as per the Articles are disclosed
Prepared by
……………………………………………………………
Reviewed
by…………………………………………………………..
Component RESERVES AND SURPLUS C Completeness
Year 2019-20

ü
1 completed )
2 Have all reserves which are required to be created been done
a Capital Reserve
b Capital Redemption Reserve
c Securities Premium Account
d Debenture Redemption Account
e Revaluation Reserve
f Share Options Outstanding Account
A reserve specifically represented by earmarked investments
g shall be termed as a “fund”.
Debit balance of statement of profit and loss shall be shown as a

negative figure under the head “Surplus”. Similarly, the balance
of “Reserves and Surplus”, after adjusting negative balance of
surplus, if any, shall be shown under the head “Reserves and
h Surplus” even if the resulting figure is in the negative.
B SCHEDULE III PRESENTATION AND DISCLOSURE E/OC C RO V PD
ü
a checklist )
Prepared by
……………………………………………………………
Reviewed
by…………………………………………………………..
Component SECURED LOANS C Completeness
References Companies Act - Section 186, CARO, Register of Charges PD Presentation and disclosure
Year 2019-20

ü
1 completed )
Obtain a detailed schedule and break up of all Secured
loans ,Party, Amount obtained, Repayments, Balance
2 Outstanding, Security offered
B MOVEMENT SCHEDULE E/OC C RO V PD
Prepare a movement schedule to reconcile the opening balance,
1 fresh loans, repayments and the closing balance
C LOAN AGREEMENTS E/OC C RO V PD S
ü ü
Review Loan agreements and ensure that the basis of loans,
1 interest , charges etc are as per the agreement
2 Ensure that such agreements are properly dated and executed
D SECURITY CREATION E/OC C RO V PD
Ensure that the Security is appropriately registered with the RoC
and the instrument creating the charge and the entry in the
1 Register of Charges are made and sighted
E APPROVALS FOR LOANS TAKEN E/OC C RO V PD
a Ensure compliance with Section 186 of the Companies Act
Ensure compiance, if required with Sec 188 of the Companies
b Act in relation to Related Party Transactions
Ensure that the loan agreements are signed by the relevant
c signatory duly approved for this purpose
Review minutes of BoD and Shareholder meetings to ensure that
d relevant approvals are in place
e Check for end use of funds
F REPAYMENT OF LOANS E/OC C RO V PD
a Ensure that loan repayments are in compliance with the schedule

In case of any defaults in repayment of principal & / interest , the
same needs to be disclosed in the financial statements as
b appropriate
G CONFIRMATION OF BALANCES E/OC C RO V PD
ü ü
Adopt independent circularisation procedures to ensure that all
Secured Loans are confirmed by the lending party for the balance
a outstanding as at Balance Sheet date
If confirmations have not been received, review if this requires
disclosure or alternate procedures can be performed to confirm
b the balances.
H LOANS IN FOREIGN CURRENCY E/OC C RO V PD
Where loans have been received from abroad, the same need to
be reviewed for FEMA compliances as may be relevant and
a relevant RBI approvals need to be in place
I INTEREST PAYABLE E/OC C RO V PD
Ensure that all interest expense accruals are in line with the loan
a covenants
Other expenses in connection with the secured loans such as
processing charges, over due interest, penalties etc also need to
b be appropriately considered for in the financial statements
c TDS as relevant needs to be complied with
J DEBENTURES E/OC C RO V PD
In case of issue of debentures to raise funds, all compliances of
1 the Companies Act 2013 to be complied including
a Authorisation for the issue
b Issue formalities
c Debenture Trustee
Component SECURED LOANS C Completeness
Year 2019-20
d Other aspects
ü
checklist ) This includes classification as Short Term and Long
a Term and other current liabilities
L CARO Compliance E/OC C RO V PD
a Ensure compliance with CARO ( see separate checklist )
Prepared by
……………………………………………………………
Reviewed
by…………………………………………………………..
Component UNSECURED LOANS C Completeness
Year 2019-20

ü
1 completed )
Obtain a detailed schedule and break up of all Unsecured
loans ,Party, Amount obtained, Repayments, Balance
2 Outstanding, Security offered
B MOVEMENT SCHEDULE E/OC C RO V PD
Prepare a movement schedule to reconcile the opening balance,
1 fresh loans, repayments and the closing balance
C LOAN AGREEMENTS E/OC C RO V PD S
ü ü
Review Loan agreements and ensure that the basis of loans,
1 interest , charges etc are as per the agreement
2 Ensure that such agreements are properly dated and executed
D DEPOSITS E/OC C RO V PD
Ensure compliance with Sec 73 to 76 of the Companies Act 2013
1 in relation to acceptance of deposits
2 The following types of transactions may be reviewed in detail
Share application money pending allotment beyond time
a specified
b Loans from members
c Trade advances pending for more than 365 days
d Loans from directors
e Loans from directors relatives
E APPROVALS FOR LOANS TAKEN E/OC C RO V PD
1 Ensure compliance with Section 186 of the Companies Act
Ensure compiance, if required with Sec 188 of the Companies
2 Act in relation to Related Party Transactions
Ensure that the loan agreements are signed by the relevant
3 signatory duly approved for this purpose
Review minutes of BoD and Shareholder meetings to ensure that
4 relevant approvals are in place
F REPAYMENT OF LOANS E/OC C RO V PD
1 Ensure that loan repayments are in compliance with the schedule

In case of any defaults in repayment of principal & / interest , the
same needs to be disclosed in the financial statements as
2 appropriate
G CONFIRMATION OF BALANCES E/OC C RO V PD
ü ü
Adopt independent circularisation procedures to ensure that all
Secured Loans are confirmed by the lending party for the balance
1 outstanding as at Balance Sheet date
2 the balances.
H LOANS IN FOREIGN CURRENCY E/OC C RO V PD
Where loans have been received from abroad, the same need to
be reviewed for FEMA compliances as may be relevant and
1 relevant RBI approvals need to be in place
I INTEREST PAYABLE E/OC C RO V PD
Ensure that all interest expense accruals are in line with the loan
1 covenants
Other expenses in connection with the secured loans such as
processing charges, over due interest, penalties etc also need to
2 be appropriately considered for in the financial statements
3 TDS as relevant needs to be complied with
J SCHEDULE III PRESENTATION AND DISCLOSURE E/OC C RO V PD
Component UNSECURED LOANS C Completeness
Year 2019-20
ü
1 Term and other current liabilities
K CARO Compliance E/OC C RO V PD
1 Ensure compliance with CARO ( see separate checklist )
Prepared by
……………………………………………………………
Reviewed
by…………………………………………………………..
Component CURRENT LIABILITIES C Completeness
Year 2019-20

ü
1 completed )
Obtain a detailed schedule and break up of all current liabilities
including Party Name, Opening Balance, Credits, Debits and
2 closing balance
Review if there are any material variations under liabilites as
compared to the previous year end. These, if present needs to be
3 examined carefully
B REVIEW OF AGING E/OC C RO V PD
Review aging of liabilities and enquire into all old pending items
as to why the amounts are unpaid and why the creditor is not
1 demanding the balance to be repaid
C CONFIRMATION OF BALANCES E/OC C RO V PD S
ü ü
Adopt independent circularisation procedures to ensure that
CURRENT LIABILITES are confirmed for the balance
1 outstanding as at Balance Sheet date
2 the balances.
D INTERNAL CONTROLS E/OC C RO V PD
Trace a sample of invoices and payments, debit and credit notes
to creditor accounts to establish the basis and internal controls
1 over accrual of liabilities
2 Ensure that all transactions are properly authorised
E LIABILITIES FOR RECURRING MONTHLY EXPENSES E/OC C RO V PD
Review the Profit and loss account of the previous year and
ensure that the following and other recurring liabilities are
1 accounted for the entire year/period
a Rent
b Professional charges
c Electricity
d Water
e Outsourced employee costs
f Security Charges
g Insurance
h Others - as appropriate
F ANALYTICAL REVIEW E/OC C RO V PD
For the following types of expenses, ensure that appropriate
liabilities are carried in the financials based on the metrics
1 involved
a Freight - based on MT / Lorry receipts
b Piece rated contracts - based on output
c Interest - based on Rate and Tenor as per loan agreement
d Purchases - based on Goods Received
e Goods in transit based on open shipments not received
f Others - as appropriate
G TEST OF SUBSEQUENT PAYMENTS E/OC C RO V PD
Review payments after year end and till the date of completion of
audit to examine the value of liabilities which have been
subsequently paid out. This will enable identification of excess
liabilities not backed by underlying transactions which are carried
in the financial statements or transactions which require accrual
1 as at the year end
H CUT OFF TESTING E/OC C RO V PD
ü
Component CURRENT LIABILITIES C Completeness
Year 2019-20
Review the transactions close to the year end and subsequent to

the year end to ensure that they have been accounted in the
1 appropriate period
I ADVANCES TO CREDITORS E/OC C RO V PD

Advances to Creditors should be treated as appropriate. All old
1 outstanding advances need to be reviewed for impairment
J DIVIDEND LIABILITY E/OC C RO V PD
Dividend related liabilities should be disclosed properly and any
unclaimed amounts should be complied for provisions relating to
1 transfer to Investor Education and Protectiion Fund
ü
Prepared by
……………………………………………………………
Reviewed
by…………………………………………………………..
Component PROVISION FOR TAXATION C Completeness
References Companies Act - Section 186, CARO, PD Presentation and disclosure
Year 2019-20

ü
1 completed )
B TAX WORKINGS E/OC C RO V PD
Obtain the workings for determination of tax liability and ensure
1 that these are in accordance with the Income Tax Act 1961
2 Is the provision adequate
3 Are any excess provisions made for the present year
Have the impact of previous orders considered in determining the
4 tax provisions necessary for the year
Have all relevant deductions been considered in estimating the
5 tax liability
Have the set off / carried forward losses & depreciation been
6 considered in determining the tax liability
Have all Tax deductions at Source in favour of the entity been
7 reconciled with Form 26 AS
C MAT E/OC C RO V PD S
Are the provisions of Minimum Alternate Tax applicable to the
1 Company
2 Have the MAT workings been done as appropriate
Have the carry forward and set off for MAT credit reconciled
with the tax return and whether they are within the eligible carry
3 forward period
D TAX DEDUCTIONS AT SOURCE E/OC C RO V PD
Have all Tax deductions at Source in favour of the entity been
1 reconciled with Form 26 AS
E DEFERRED TAXATION E/OC C RO V PD
Has the entity properly cognised for the Deferred Tax Asset /
1 liablity on various items in the financial statements
Prepare a movement statement of the Deferred tax items to
2 establish their continued relevance
3 Offsets of DTA and DTL should be permitted only if
(i) the Company has a legally enforceable right to set off assets
a against liabilities representing current tax
(ii) the deferred tax assets and the deferred tax liabilities relate to
b taxes on income levied by the same governing taxation laws.
F COMPLETED ASSESSMENTS E/OC C RO V PD
In respect of years where assessments are completed, the relevant
entries are passed and the tax position relating to such years is
1 adjusted and closed as appropriate
G TAX STATUS TRACKER E/OC C RO V PD
ü
Does the entity maintain a tax status tracker where all notices
received, details of assessments, litigation , assessment status and
closure are recorded . This is particularly relevant for large
1 entities
Have we reviewed the above tracker to ensure that all material
2 liabilites under dispute have been properly cognised for
Whether contingent liabilities to be considered for disclosure
3 based on the tax status tracker
In case of disputed balances not yet paid (based on the tracker)
4 whether adequately disclosed for CARO purposes
H SCHEDULE III PRESENTATION AND DISCLOSURE E/OC C RO V PD
ü
Component PROVISION FOR TAXATION C Completeness
Year 2019-20
Prepared by
……………………………………………………………
Reviewed
by…………………………………………………………..
Component PROFIT AND LOSS ITEMS - PAYROLL C Completeness
Year 2019-20
A OVERALL UNDERSTANDING E/OC C RO V PD WP ref Exceptions

Obtain a detailed understanding of the total number of employees
1 per grade and the salary structue as applicable
B RECONCILIATION E/OC C RO V PD
1 Perform a three way reconciliation
Pay roll register
Payroll JV
Amount as booked in the financial statements
2 Differences if any should be investigated
C INTERNAL CONTROLS REVIEW E/OC C RO V PD
Review internal controls over the Hire to Retire process with
1 emphasis on the following
a Appointment letter / Contract
b Non Discloure agreement
c Availability of photograph
d Employee Background checks
e Master data - Name, address, Bank account , Mobile ,PAN
f Master data - Amount of and elements of pay
g Attendance recording process
h Pay computation : Pay amount master X days worked
i Statutory deductions - compliance and accuracy
j Credit to employee account or other payment method
k Leave management system
l Tax Deductions at Source
m Statutory Liabilities
n Resignations and Terminations
o Notice Pay
p Final Settlement calculations
Any control weaknesses in the above needs to be reviewed and
discussed with the management and potential impact on audit
2 report to be assessed
D ANALYTICAL REVIEW PROCEDURES E/OC C RO V PD
Perform an overall analytical review of grade wise amount and
number of employees and check totals vis a vis the Amount as
1 per financial statements
2 Prepare an employee movement statement across months
a Opening balance
b New Hires
c Resignations and Terminations
d Pay suspensions
e Closing Balance
E STATUTORY COMPLIANCES E/OC C RO V PD
Ensure the following compliances for deductions, employer
1 contributions, if any , remittance before due dates
a PF
b ESI
c Gratuity
d Leave Salary
e Bonus
f Others
F STAFF WELFARE EXPENSES E/OC C RO V PD
a
b
G SCHEDULE III PRESENTATION AND DISCLOSURE
Component PROFIT AND LOSS ITEMS - PAYROLL C Completeness
Year 2019-20

1 checklist )
Prepared by
……………………………………………………………
Reviewed
by…………………………………………………………..
Component PROFIT AND LOSS ITEMS - POWER C Completeness
Year 2019-20

Obtain a total understanding of the number of locations of the
company for which power related expenses are borne by the
1 entity
a Factories
b HO
c Branches
d Godowns
e Other locations
Obtain a statement month wise / location wise indicating the
1 following for power purchased form SEB or other IPPs
Units
Rate / unit
Power cost
Other charges
Total Amount
Cost of diesel etc purchased for power generation to be verified
2 with reference to purchase invoices
F SCHEDULE III PRESENTATION AND DISCLOSURE
1 checklist )
Prepared by
……………………………………………………………
Reviewed
by…………………………………………………………..
Component PROFIT AND LOSS ITEMS - RENT C Completeness
Year 2019-20

Obtain a total understanding of the number of locations of the
1 company for which Rent expenses are borne by the entity
Contract is in existence and is valid
a Factories
b HO
c Branches
d Godowns
e Other locations
1 Obtain / Prepare a statement indicating location wise
Rent per month
Total months
Rent amount
The above may be added to obtain the total rent debited to the P
2 & L account
C DEPOSITS E/OC C RO V PD
Deposits if any paid to landlords to be checked with reference to
receipts and tallied to the deposits amount as per the financial
1 statements
D TAX DEDUCTIONS AT SOURCE E/OC C RO V PD
1 Ensure that TDS on rent is correct and remitted within due dates
F SCHEDULE III PRESENTATION AND DISCLOSURE
1 checklist )
Prepared by
……………………………………………………………
Reviewed
by…………………………………………………………..
Component PROFIT AND LOSS ITEMS - OTHER EXPENSES C Completeness
Year 2019-20
A REPAIRS AND MAINTENANCE E/OC C RO V PD WP ref Exceptions

Review the Repairs and Maintenance Account in the GL and
1 check for the following
a Capital expenses are not debited to revenue
b Personal expenses are not debited to revenue
c Expenses are supported by underlying work orders
d Work has been completed and certified before accrual of expenses

Review trends vs previous year and across months and review all
e unusual items
B MANAGERIAL REMUNERATION E/OC C RO V PD
Ensure compliance with the provisions of the Companies Act in
1 respect of
a Maximum remuneration
b Remuneration in the event of loss making companies
c Any changes in the context of private companies
2 Disclosure requirements as per Schedule III
3 In case of excess payments have the amounts been recovered
C AUDITORS FEES E/OC C RO V PD
Check if Auditors fees is in compliance with Companies Act
1 2013 and the amount is disclosed
D DIVIDENDS E/OC C RO V PD
Ensure compliance with the provisions of the Companies Act in
respect of dividends declared, payouts and unpaid / unclaimed
1 dividends
E SUB CONTRACTING CHARGES E/OC C RO V PD
In case of any expenses incurred for sub contracting of
production / part thereof, the same may be reviewed with
reference to
a Sub contractor agreements
b Rate / unit for various goods / services
c Total units handled
Amount as arrived at to be reconciled to the amount debited as
d per the financial statements of the entity
e TDS / GST on above to be handled as appropriate
F LEGAL EXPENSES E/OC C RO V PD
Review the schedule of legal expenses to understand the cases
and if any provisions may be necessiated on account of such
a litigation. Keep a note on the same
G MISCELLANEOUS EXPENSES E/OC C RO V PD
Review all miscellaneous expenses for nature and purpose and
whether they should fall under other categories
H GST AND TDS E/OC C RO V PD
a Ensure that GST and TDS are appropriately complied with
I GENERAL E/OC C RO V PD
a Ensure that all expenses are
b Authorised
c Supported
d Business purposes
e Booked in correct head of account
f Booked in the relevant accounting period
g TDS applied correctly
h GST considered and Input tax availed correctly
i Provisioned for as appropriate
I SCHEDULE III PRESENTATION AND DISCLOSURE
Component PROFIT AND LOSS ITEMS - OTHER EXPENSES C Completeness
Year 2019-20

1 checklist )
Prepared by
……………………………………………………………
Reviewed
by…………………………………………………………..
Component TAX DEDUCTIONS AT SOURCE C Completeness
References Income tax Act 1961 PD Presentation and disclosure
Year 2019-20
This checklist is relevant when there are high volume of transactions attracting TDS
A Key Assertions E/OC C RO V PD WP ref Exceptions
The Company has deducted tax on all cases where such TDS is
1 applicable
2 The Company has deducted tax at the applicable rate
Lower rates have been applied only where there are concessional
3 certificates
4 The amount collected has been remitted before due date
B Step 1 - Identificaiton of ommisisons
Take all creditors as per the Trial Balance including Nil Value
1 Balances
Peruse Cash book for parties paid directly without liability
2 accounting
3 Prepare a consolidated list of 1 and 2 above
4 Sort the list in descending order of value
Discuss with management and classify the vendors as materials,
5 services or both
Test check if what is stated by the management is correct by
6 review of few invoices
7 Eliminate Materials related vendors
8 Obtain PAN numbers of services and both vendors
Check if the PAN numbers feature in the e tds returns filed by the
9 management
10 Get a list of parties which do not feature in the e tds return
11 Review if these are genuine cases where TDS does not apply
C Step 2 - Application of rates
Check if the rates correcpond to the categories of payments - eg.
1 Professionals, contractors etc
Check if concessional certificates are available where the
2 standard rates have not been applied
D COVERAGE
1 192 ‑ Salary
2 193 ‑ Interest on securities
3 194 ‑ Dividends
4 194A -Interest other than Interest on other securities
5 194 B – lottery / crossword winnings
6 194 BB – horse race winnings
7 194C – Contractors and sub-contractors
8 194 D – insurance commission
9 194 E – non resident sportsmen / associations
10 194 EE – deposit under NSS
11 194 F – repurchase of units by mutual fund / UTI
12 194 G – commission on sale of lottery tickets
13 194 H – commission, brokerage etc.
14 194 I – rent
15 194 J – professional fees
16 194 K – income in respect of units
17 194 L – compensation on acquisition of capital asset
18 195 ‑ Other sums.
19 195 A – income payable net of tax
20 196 A – income in respect of units of non residents
21 196 B – income from units
196 C – income from foreign currency bonds or shares of
22 Indian Company
23 196 D – income of foreign institutional investors from securities
E RETURN FILING
1 Ensure that all deductions are
Component TAX DEDUCTIONS AT SOURCE C Completeness
References Income tax Act 1961 PD Presentation and disclosure
Year 2019-20
This checklist is relevant when there are high volume of transactions attracting TDS
a Remitted
b Returns filed for the correct amount
c Returns filed on / before due date
Prepared by
……………………………………………………………
Reviewed
by…………………………………………………………..

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Firm Name

CA Sripriya Kumar | A Smart CA Initiative

CA Sripriya Kumar | A Smart CA Initiative

The Board of Directors

RELEVANT SECTIONS ( PROVISIO TO SEC 139 )

CA Sripriya Kumar | A Smart CA Initiative

Illus. 1 Engagement Letter for Audit of https://resource.cdn.icai.org/35939aasb25441a.pdf

APPLICABILITY OF INTERNAL FINANCIAL CONTROLS OVER FINANCIAL REPORTING BY AUDITOR

Audit report for Financial

APPLICABILITY OF INTERNAL FINANCIAL CONTROLS OVER FINANCIAL REPORTING BY AUDITOR

CA Sripriya Kumar | A Smart CA Initiative

Communication with the previous Auditor.

Sub: Audit of ……………. Branch of …………… Bank - N O C - Reg.

Ref : Letter of Appointment from ……….. Bank, dated………..

3 UNDERSTANDING OF KEY COMPONENTS

4 COMMENCEMENT AND CONCLUSION DATES

4 COMMENCEMENT AND CONCLUSION DATES

5 PREVIOUS AUDIT FINDINGS

6 INTERNAL AUDIT REPORT

6 TEAM Last year ? This Year ?

CA Sripriya Kumar | A Smart CA Initiative

A OVERALL PROCEDURES E/OC C RO V PD WP ref Exceptions

D PERSONAL AND REVENUE EXPENSE E/OC C RO V PD

E SPECIFIC ASPECTS RELATING TO CAPITALISATION E/OC C RO V PD

E PHYSICAL VERIFICATION E/OC C RO V PD

F IDLE / UNUTILISED ASSETS E/OC C RO V PD

G CONTROL OVER ASSET MOVEMENTS E/OC C RO V PD

Obtain the listing of assets along with the depreciation workings

Ensure that the depreciation as per the workings is reconciled to

Ensure that shift depreciation is provided for / computed properly

I FIXED ASSETS REGISTER E/OC C RO V PD

J TITLE AND INSURANCE E/OC C RO V PD

K SPECIAL CATEGORIES OF ASSETS E/OC C RO V PD

d Assets taken on Lease and treatment of lease equalisation reserve

CA Sripriya Kumar | A Smart CA Initiative

Illustration : Plant and Machinery

For Info Only

Final Years No of years Cal Dep Net Block Cal Dep

Year Year Year Cost Rate Deprecn

2014 - 2015 Years Lapsed

8 2014 - 2015 350,485 30.09% 105,458

WDV Cost Rate Deprecn WDV

245,027 350,485 33.57% 117,672 232,812

Tech Adv Final Years No of years Rate Memo Days

Cal Dep Derived NB Final Dep Final NB Treatment

A OVERALL PROCEDURES E/OC C RO V PD WP ref Exceptions

1 Obtain the schedule of Investments held

In case of investments held in a de materialised form, have they

B INVESTMENTS & DISPOSALS DURING THE YAR E/OC C RO V PD

C ACCRETIONS TO INVESTMENTS E/OC C RO V PD

D SCHEDULE III DISCLOSURE REQUIREMENTS E/OC C RO V PD

The investments shall be classified as Investment property,

The following shall also be disclosed: (a) The basis of valuation

Under each classification, details shall be given of names of the

F INVESTMENTS - OWN NAME - SEC 187

CA Sripriya Kumar | A Smart CA Initiative

A OVERALL PROCEDURES E/OC C RO V PD WP ref Exceptions

In case of any issues in relating to basic controls over issues, the

- Non Moving inventory

A OVERALL PROCEDURES E/OC C RO V PD WP ref Exceptions