Part 4

Transcript

00:02

Welcome Back

00:10

PROCESS OF AUDITING

00:17

Step 1

00:19

Check whether audit has been conducted for the previous year

00:21

IF

00:27

i) Check whether corrective actions suggested have been implemented in the current year or not.

00:32

ii) Check whether there are any changes w.r.t accounting policies, process, softwares etc. and document the same

00:37

IF

00:41

i) Try to understand the procedure followed by accounts department, get working papers w.r.t Org structure, MOA & AOA Docs, Scope of business and related documents.

00:48

If Internal Audit has been conducted ->

00:55

ii) Go through internal auditor’s report iii) Make sure that all discrepancies reported by internal auditor have been sorted out by management and accounts staff.

01:00

Step 2 - Plan your audit of financial statement - Prepare a project chart based on the analysis.

01:05

Step 3 - Divide the areas to be audited between the team

01:09

Step 4 – Start with vouching and verification, Sampling technique can be used for the same. You should also have knowledge on GST, PF, ESI, Income tax, professional tax, customs, excise etc. and verify the same to its compliance by the company. Verify all areas like AP and AR ledger, Cash management, treasury, medical ledger, general ledger, filing process etc.

01:14

Step 5 - Physical Audit Conduct a physical audit to ensure existence of Assets and Inventories. (procedures for the same will be seen separately)

01:19

Step 6 - Once audit is completed, consolidate all queries and prepare a draft report.

01:24

Step 7 - Discussion with client – Discuss the points summarized with the client.

01:29

Step 8 - If discrepancies found evaluate the route cause w.r.t same and assess its impact.

01:34

Step 9 – Conclude with the corrective action steps and prepare the Final report.