Check whether audit has been conducted for the previous year
i) Check whether corrective actions suggested have been implemented in the current year or not.
ii) Check whether there
are any changes
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.
If Internal Audit
has been conducted ->
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.
Step 2 -
Plan your audit of financial statement -
Prepare a project chart based on the analysis.
Step 3 -
Divide the areas to be audited between the team
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.
Step 5 -
Conduct a physical audit to ensure
existence of Assets and Inventories.
(procedures for the same will be seen separately)
Step 6 -
Once audit is completed, consolidate all
queries and prepare a draft report.
Step 7 -
Discussion with client –
Discuss the points summarized
with the client.
Step 8 -
If discrepancies found evaluate the
route cause w.r.t same and assess its impact.
Step 9 –
Conclude with the corrective action steps and
prepare the Final report.