Accounts Knowledge Hub

Finance, Taxation and All Statutory Information For Everyone

Accounts Knowledge Hub

Finance, Taxation and All Statutory Information For Everyone

Audit

Checklist Before Preparation Balance Sheet of Manufacturing Company

Capital Account/ Share Capital
** Movements in share capital
** Buy Back prodedure to be followed if there is any buy back
** Fresh issue procedure to be followed if there is any fresh issue
** Inflow in capital accounts
** FIRC Copies and RBI approval from foreign inwards towards capital
** Share application money pending allotment
Reserves and Surplus
** Movements in reserves and surplus
** Types of Reserves
** Specified reserve to be used for specific purpose
** Distribution of Surplus if any during the year
Secured Loan Analysis
** Terms and conditions of the loan
** Interest calculation
** Repayment schedule of the loan
** Charge creation if any , hypothecation on assets and creation of equitable mortgage
** Calculation of Interest accrued but not due 
** Calculation of Interest accrued and due 
Unsecured Loan Analysis
** Agreement with parties
** Loan taken from directors
** Terms and conditions of the loan
** Interest calculation
** Repayment schedule of the loan
** Application of sec 269SS and T
Provision calculation – Liability
** Provision for Interest Payments
** Provision for Expenses
Statutory Liability Provisions in respect of
**ESI
**EPF
**Leave Encashment
**Tax Provision (115JB and Credit calculations)
** Deferred Tax
**Wealth Tax Provision
**Bonus Provision— Exgratia 
** TDS/ TCS Payable
** Professional Tax
Other Provision
*Excise duty on final Finished Goods
* Goods in transit valuation
*Provision for Royalty and Techincal Fees 
* Price reduction
*Warrenty Provision
*Employee Benefits  Provision as per AS-15
*Provision for Bad debts
*Audit Fees

Provision Reversal entry
* Excise duty on the opening—-  Reversal  to Excise duty of Current year
* Goods in transit                  —-  Reversal to Purchase of current year 
Accrued Incomes
* Interest Receivable-for Loan and advances
* Bank interest reconcilation with TDS Receivable Certificates
Creditors ledger Analysis
** Creditors ledger Review
** CRS having negative balance and reasons for the same
** Balance Confirmations
** Prepare Aging Analysis for More and less than 6 months
Debtors ledger Analysis
** Debtors ledger Review
** DRS having negative balance and reasons for the same
** Balance Confirmations
** Prepare Aging Analysis for More and less than 6 months
Cash & Bank Analysis
* Cash vouching & Bank vouching
* Cash payment not exceed Rs20000( Relevant section in IT 269SS and T)
* Only Bank payment above Rs20000
*All Bank reconcilation and their confirmation from bank
Bank Interest calculation and Recognition
* all FDR and TDS Certificates and Interest Workings
* All deposit 
* Match with PL with Interest received.
Fixed Asset Addition and Deletion analysis
* Fixed Assets Register Analysis and copies of all invoices
* Prepare the Compay Dep as per Sech XIV
* Disposal of Assets  and Management confirmation for such
*Profit and loss of sale of assets
*Reversal of Depreciation for the sale of assets during the year
*Reconcilation of Assest Deletion with IT Dep and Comp Dep
*Reconcilation of Addition with IT and Company – If any diff  in IT that should be in the nature of 43A  Capitalization portion only.
*Verification of Depreciation entry for the current year
Closing Stock valuation and Mgmt certificates
* Stock Valuation Sheet Certified  by the Management
* Qty Wise Reconcilation with Excise Records
* Qty wise production and sale during the year
* Input and Output Ratio for Raw Materials
* Provision on FG
* Valuation method  adopted for WIP and FG
*RM stock Valuation 
Investments
* List of Investment
* List of investment made during the year
* List of investment sold during the year
* Valuation of the quoted investments
* Valuation of unquoted investments
* Nature of investment long term/ Short term
* Dividend receivable
* Interest Accrued but not received during the year
* Interest Received during the year
* Investment fluctuation reserve if any
* Match with TDS Receivable certifcates for Interest accuracy
Deposits
** Verification of Deposit certificate
** Confirmation for such deposits
** Agreement if any for such deposits
Loans and Advances
** Terms and conditions of the loan
** Interest calculation
Inter corporate loan
* Check whether any provision in the AOA
* Sec 372A Not applicable for Private Company
* Check the agreement and interest provision
Foreign Exchange Rate Fluctuation Calculation
** As Per AS 11
** ECB Loan Fluctuation
** Export Sale Fluctuation
** Capital Goods Fluctuation –Sec 43A of Income Tax
** Segregation of Forex between RM and CG
** Re state of Closing balance as per March — Closing Rate – ONDA Site
**Exim Bank rate fluctuations
**Restatement of Import Purchase liability and Exim Bank
Confirmation of Balances for
** All bank account
** All Bank FDR
** All Major Debtors
** All Major Creditors
** All Deposits
Preparation of Check List for Applicabilty of AS
Responsibilty of Management and Finance Head
Final Tally Backup , Excel soft copy, TB Print, 
Detailed TB   and duly singed by MD/ Finance head/Management
Audit Team Certification for
** Opening balance verification
** Closing Balance verification
** Latest print out/ final print  soft copy