Tiêu đề CH 5 AUDIT ✅

Audit 5.1 CH 5 AUDIT OF ITEMS OF FINANCIAL STATEMENTS Here Is The Summary Of Chapter 5. If You Want To Read This Chapter In Detail Please Refer To ICAI Mate Balance Sheet Captions AUDIT OF SHARE CAPITAL Existence यह ज्ञा पन में कंपनी की पूंजी के रूप में बता ई गई रा शि है जि सके सा थ इसे पंजी कृत कि या जा ना है,हैयह वह अधि कतम रा शि है जि से इसे शेयशेर जा री करके जुटा ने के लि ए अधि कृत कि या गया है,हैऔर जि स पर यह स्टां प शुल्क का भुगता न करता है Completeness “जा री पूंजीपूं जी” का अर्थ है अधि कृत पूंजीपूं जी का वह हि स्सा जो कंपनी द्वा रा सदस्यता के लि ए पेश कि या जा ता है और इसमें नकदी के अला वा वि चा र के लि ए आवंटि त शेयर शा मि ल हो ते हैं Presentation and Disclosure यह इका ई पर ला गू AS/IND AS के अनुसा र हो ना चा हि ए और कंपनी अधि नि यम, 2013 की अनुसूची III के अनुसा र हो ना चा हि ए Valuation ● अवधि के अंत में अधि कृत, जा री और चुकता पूंजीपूं जी बैलेंस का मि ला न पी वा ई ऑडि टेड एफएस से करें । ● यदि वर्ष के दौ रा न को ई परि वर्तन नहीं हुआ है,हैतो सी एस से एक डब्ल्यूआर प्रा प्त करें कि वर्ष के दौ रा न इका ई की पूंजी संरचना में को ई परि वर्तन नहीं हुआ है । ● यदि को ई परि वर्तन है,हैतो बो र्ड ऑफ डा यरेक्टर्स, शेयरधा रकों की बैठकों में पा रि त प्रस्ता वों की प्रमा णि त प्रति यां प्रा प्त करें, जो अधि कृत और चुकता एससी में परि वर्तनों को अधि कृत करते हैं । ● सत्या पि त करें कि अवधि के अंत में चुकता पूंजी अधि कृत पूंजी की सी मा के भी तर है या नहीं । AUDIT OF RESERVES AND SURPLUS Existence/Valuation/Completeness- Tally the opening balance of reserves and surplus to the previous year audited FS. For addition/ utilisation in CY, in case of: ● P&L balance- trace the movement as disclosed in Statement of changes in Equity to Surplus/ Deficit as per Income Statement for the year under audit ● For adjustment related to dividend payment and the tax related thereto i.e. dividend distribution tax, verify the resolution passed by the BOD regarding declaration of dividend ● It should note that as per Ind AS 10 and AS-4 (revised), if dividends to holders of equity instruments are proposed or declared after the B/S date, an entity should not recognize those dividends as a liability as at the B/S date. It should, however, disclose the amount of dividends that were proposed or declared after the B/S date, but before the FS were approved for issue.
Audit 5.2 Presentation and Disclosure It should be as per AS/IND AS as applicable to the entity and in accordance with Schedule III of Companies Act, 2013 AUDIT OF BORROWINGS Existence ● Review board minutes for approval & authorization of new lending agreements. ● Ensure that significant debt commitments should be approved by the BOD. ● Agree details of loans recorded (interest rate, nature and repayment terms) to the loan agreement. ● Verify that borrowing limits imposed by agreements are not exceeded ● Agree details of leases and hire purchase creditors recorded to underlying agreement ● Examine trust deed for terms &dates of redemption, borrowing restrictions & compliance with covenants Valuation ● Determine the A/c Policy and methods of recording debt is appropriate & applied consistently. ● Recalculate the interest accrual, and discount or premium on redemption ● For foreign loans, agree the cls. exchange rate(s) used & test the translation calculations ● Check computation of the amortization of premium or discount Completeness ● Obtain a schedule of short & long term borrowing showing beginning & ending balances, and perform the following ● Consider any evidence of additional debt obtained through examination of minutes of the board, significant contracts, confirmations of bank a/c, &support for subsequent cash disbursements etc. ● Test the summarization and trace the ending balances to the general ledger ● For each lender , the client had debt O/S at the PY end or during the CY, prepare, or have the client prepare, a confirmation request for the amount owed to the lender Presentation and Disclosure ● It should be as per AS/IND AS as applicable to the entity and in accordance with Schedule III of Companies Act, 2013 ● Examine the due dates on loans for proper classification between long-term and current ● Verify the liabilities to bank towards bills discounted & negotiated, cheques discounted, etc. are disclosed. Other Aspects: ● Verify that the company has not contravened the restrictions laid down by Section 180 of the Companies Act, on the borrowings of the company.
Audit 5.3 ● Check compliance of Section 2(22)(e) of Income Tax Act,1961 and ensure that payment by way of advance or loan to a shareholder holding not less than 10% of voting power or any concern in which such shareholder is a member or a partner and in which he has substantial interest, shall be treated as dividend ● Where the entity has accepted deposits, & Ensure whether the directives issued by the RBI Compiled. AUDIT OF TRADE RECEIVABLES Existence ● To ensure that trace receivables ledger reconciles to general ledger ● Calculate the receivable report total. Add invoices on the accounts receivable aging report to verify the total traced to the general ledger is correct ● A significant and important audit activity is to contact customers directly and ask them to confirm the amounts of unpaid accounts receivable ● If realization is made on A/c, verify if the Co. has obtained confirmations from debtors ● If there are any related party receivables, review them for collectability Valuation ● Assess the allowance for doubtful A/c’s. ● Review the process followed by the Co. to derive an allowance for doubtful A/c’s. ● Obtain the ageing report of accounts receivable, split between not currently due, 30 days old, 30-60 days old, 60- 180 days old, 180- 365 days old and more than 365 days old ● Assess bad debt write-offs. Prepare schedule of movements on Bad Debts ● Compare the proportion of bad debt expense to sales for the CY & PY Presentation and Disclosure - It should be as per AS/IND AS as applicable to the entity and in accordance with Sch. III of CO. Act, 2013. ● Verify that the split between more than 6 months and less than 6 months has been done from the due date instead of sales invoice date Completeness - The auditor needs to conduct correct and proper cut-off tests ● For the invoices issued during the last few days closer to the reporting date ● All good dispatched prior to the period have been invoiced and included in Drs. ● No goods dispatched after the year- end have been invoiced and included in debtors for the period under audit