Exercise 1 - jb nagar cpe study circle of wirc of icai

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Audit ChecklistSA XX/XX - Audit Evidence (Extracts)Compliance Procedure (Test of Application Controls)Existence - Review of process flow…followed by test of compliance- Review of documentation flow …followed by test of compliance- Review of roles and responsibility …followed by test ofcompliance- Review of Controls ….followed by its observationEffectiveness - Physical Stock take reveals nil exceptions- No pointers towards ineffectiveness (e.g. negative stock)- Nil Exception noticed during test of complianceContinuity - Physical stock take is done periodically- Samples selected for Test of Compliance were from throughoutthe period.Substantive Audit Test (Test of Transactions and Balances)Existence - Physical Stock take (refer separate audit program)- Subsequent sales and realizationRights andObligations- Clear title to inventory, (where hypothecated the fact disclosed)Occurrence - MRN - Receipt of Material (later tallied to Purchase bills or salesreturn)- GDN – Dispatch of Material (later tallied to sales bill or scrapnote)- Discrepancies – Physical Stock SheetCompleteness - Cut-off test (MRN, GDN and JV)- Linking Sales cut-off- Attempting Review of P.O. v/s MRN- Stock reconciliationValuation - Assessing Components of Cost- Comparison with NRV.Measurement(Accuracy)- Checking Calculations- Processing ControlsPresentation andDisclosure- Compliance with AS 2- Compliance with Schedule VI- Reporting Under Long form report24 Rakesh Agarwal
Audit ChecklistSample 4 ACompliance Testing - Interim Balance Sheet - StockS.r. No. Particulars E E C WP Reference /CommnetsISelect - one samples per months for all the sourcedocuments (MRN, GDN and JV)from Stock register andCheck the Following1.A Check the following for each MRN Y Checked MRN n.o……….a Pre-printed Serial Control Y Y NEb Date of Receipt of Material Y Y NEc Quantity in Delivery Challan Y Y NEd Quality Control Passing including date of passing and bywhom passedY Y NEe Stock coding in accordance with Description Y Y NEf Check Calculation Y Yg Authorisation of MRN by Stores Incharge Y Y NEh Entry in Stock Register/System Y Y NEI B Check the following for each GDNY Checked GDN n.o……….a Pre-printed Serial Control Y Y NEb Date of dispatch of with DC Y Y NEc Quantity in Delivery Challan Y Y NEd Reference to Sales Invoice or Credit Note (Actual Copy fromAccounts)Y Y NEe Stock coding in accordance with Description Y Y NEf Check Calculation Y Yg Authorisation of GDN by Stores Incharge Y Y NEh Entry in Stock Register/ System Y Y NEII Select - Two key stock codes to be audited in Depth Y Checked GDN n.o……….a Check opening balances from p.y closing stock register Y Y NEb Check that entries during the period are supported by itsSource documents (on a sample basis).Y Y NEc Confirm that there is no new category of source documents(say credit notes, )Y Y NEd Check Quantitative Reconciliation Y Y NEe Check Balances with Stock take sheet Y Y NEIIIReview flowchart and ensure the following (not to bedelegated)The segregation was reviewedbefore the start of field work butjust confirm the understanding25 Rakesh Agarwal
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Exercise 1 - jb nagar cpe study circle of wirc of icai

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