Auditing Application internship done by partial Completion

Auditing

1. AUDIT REPORT DONE BY: RAGHUL P 2213281034112 II-A&F-B

2. TOPICS COVERED IN THIS PRESENTATION VOUCHING BANK RECONCILIATION STATE MENT TALL Y BASICS GST RETURNS INCOME TAX

3. Vouching is a procedure followed in the process of the audit to authorize the credibility of the entries entered in the books of accounts. In simple and easier words, it is a precise investigation of the presented documents of the firm by an auditor to check the correctness and accuracy of such documents. It is the foremost step of the auditing process based on which auditor performs his work and prepare an audit report. Some major objectives behind the vouching process are as follows: To ensure that all the transactions took place during the financial year for the business purpose only (not for personal use), and are appropriately recorded in the books of accounts with true and fair evidences. To check the accuracy of the totaling and carrying forward amount recorded in the financial statements. To ensure that the person responsible for the business has verified his records or not. To make the financial records free from malpractices. To make sure that financial records are prepared in a lawful manner. VOUCHING

4. Important Points Regarding Vouching * Accuracy of transactions. * Authenticity of transactions. * Proper classification of accounts. * Voucher should be properly numbered serially and arrangement of vouchers accordingly. * Every checked voucher should be tick marked with sign. * Amount of receipt should be same in words and in figure. * Period of payment should be there on receipt. * Receipt should clearly mention “advance payment” if it is so. * To verify that proper certification of voucher should be there by any responsible officer of the company. * Investigation about missing vouchers in file if any. * Every alteration in voucher must be authenticated by concerned officer. * Vouching should be complete at once in one sitting for a particular period of time. * All the expenses should be examined by the Auditor.

5. A bank reconciliation statement is a document prepared by a company that shows its recorded bank account balance matches the balance the bank lists. This statement includes all transactions, such as deposits and withdrawals, from a given timeframe BANK RECONCILIATION STATEMENT Checklist for Bank Reconciliation Audit Auditor must check bank statement, general ledger, and bank reconciliation documents for the month/year auditing is done. He must compare the final figures on reconciliation document to that account’s bank statement. The amounts should match. He must check the final figures on bank reconciliation document against general ledger totals and ensure they match. He must calculate the difference between bank statement ending balance and the general ledger total. Bank statement should properly reflect the difference.

6. Auditor must match transactions from bank statement and general ledger account. Each transaction in one document should have a corresponding transaction in the other. Auditor must highlight any non-matching transactions between general ledger and bank statement. These items are ‘reconciling’ and should be accounted for in bank reconciliation document with a full explanation for the discrepancy. These items are usually the result of funds that have not yet cleared or checks that are waiting to be cleared. Auditor must Double-check that the difference between bank statement and general ledger is properly accounted for.

7. TALLY BASICS Tally is a complete system for business accounting and inventory management. It provides various facilities like Govt. supported formats, multilingual operations, online functions and processing for small, medium and big businesses. The present version of Tally has many advanced features like better data migrating, payroll management, TDS, TCS, job costing and point- of sale invoicing etc. Tally software is used for storing all the business transactions of each account in detail. Tally has made calculations simple. Tally has become part of all businesses. Small scale enterprises believe that Tally software carries out efficient business transactions, provides accuracy, and saves a lot of time. Manual calculations are time-consuming; that's why all the organizations use Tally. Because of Tally, the chances of error are reduced to a great extent. The Tally software can learn at home or designated institutes. It is self-explanatory and easy to learn. Tally is cost-effective and time-saving. It also ensures accuracy in business management. It enables the digitalization of bills and signatures, thus staying up-to-date with the latest technology.

8. GOODS AND SERVICES TAX (GST) The Goods and Services Tax, or GST, is an indirect tax law applicable across India. It has replaced multiple indirect taxes such as excise duty, service tax, value-added tax, octroi, entry tax, and luxury tax. Laws pertaining to the same were put into effect on July 01, 2017, in India. This indirect taxation system has gone through multiple amendments since to arrive at the current juncture. However, it must be noted that GST does not replace customs duty, which is still mandatory on imported goods and services. Every kind of product and service attracts a different tax rate under GST. OBJECTIVES OF GST To achieve the policy of ‘One Nation, One Tax’ To subsume a majority of the indirect taxes in India To eliminate the cascading effect of taxes To eliminate tax evasion and corruption To increase the taxpayer base To bring Uniformity in taxes To remove multiple indirect taxes

9. LIST OF GST RETURNS

10. LIST OF ITR FORMS