P A R Y & Co.

Chartered Accountants

Name of the client

:----------------------------------------

F. Year of Audit

:200X-0X

QUESTIONAIRE FOR AUDIT PROGRAMME

References Remarks
Sl. Particulars
No.
1) Opening balance:Whether opening balance have been checked
Verify through last year
with last year Balance Sheet.
audited balance sheet.
2)

Cash Vouching
a) Whether all cash expenses entries have Audit note Verify with vouchers
been made?
sheet No.
duly
supported
and
authenticated
by
competent authority.
b) Whether all cash income entries have
Verify cash receipt book.
been made?
Also verify scrape sales.
c) Whether all expenses are supported by
corroborative audit evidence?
d) Whether in any day, negative balance
exists in cash account?
e) Whether any loan has been received in
Take the print of loan
cash in excess of Rs. 20,000.00 during the
accounts other than loan
year?
from bank and keep it in
your audit file. Also take
Address and PAN no of
parties.
f) Whether any loan has been paid back in
Take the print of loan
excess of Rs. 10,000.00 during the year?
accounts other than loan
from bank and keep it in
your audit file. Also take
Address and PAN no of
parties.

3)

Bank Vouching:-

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a) Whether bank has been reconciled?

b) Whether reconciliation entries have been

subsequently cleared in the following
months?
c) Whether bank balance certificates have
been obtained?

Take the copy of bank

reconciliation of last
month for the entire
bank. Note down date of
clearing of entries on the
reconciliation.
Report
old outstanding entries in
your special observation
report.
Some entries are pending
since long and under
observation.
Try to obtain bank
balance certificate from
the bank. If same is not
available than take the
copy of closing balance
from bank statement.

1. If yes, do they tally with the balance

as per bank statement & with
balance as appearing in bank
reconciliation?
d) Whether Interest certificates have been
taken?
(i) If yes, do they tally with interest
accounted for in the books of account?

4)

Journal Vouching: a) Whether all journal entries including

entries of credit cards have been entered in
the books of accounts?
b) In cases where payments have been made
in advance, whether bills have been received
for such expenses?
(i) If yes, whether the same have been
accounted for in the books of accounts?
(ii)If no, whether steps have been taken
for receipts of such bills?
c) Whether interest & balance on loans like
car loans, term loans tally with the certificate

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Find
out
personal
expenses booked in the
books and transfer them
to drawing account.

Match the interest and

bank
balance
from
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obtained from the loaning concern for

interest & balance?

5)

Sundry Debtors: a) Are confirmation of account sent to all

debtors?

b) Are the debtors requested to confirm the

balances as per statements and provide
details of differences, if any?
(i) If answer to (a) & (b) above is yes,
does a responsible official reviews the
confirmations received from the debtors?
(ii) Is there an adequate follow-up on the
differences in accounts?
c) Whether all debtor appearing in the books
of accounts are GOOD?
d) If the answer to (c) above is no, whether
list of doubtful debtors have been prepared?
Are there any debtors who are totally BAD
& beyond recovery?

e) Whether debts have been classified into

outstanding for more than & less than Six
months?
6)

Sundry Creditors; a) Does the procedure ensure proper

recording of transactions & facilitate linking
of payments with outstanding?
b) Are statements of accounts called for from

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repayment
schedule/
bank statement. Take the
copy of the same.

Send
by
yourself
confirmation of account
to all the major debtors
by registered or normal
post and keep record of
the same in your audit
file.
Ask the client to resolve
the differences and take
reply in written.

Discuss
with
management about old
outstanding balances and
if
required
make
provision for doubt full
debt. For ascertaining
that debtors are good,
take
written
representation from the
management.
Do it during the course
of audit with the help of
client.

Brief in your audit file

about procedure for
recording of purchase,
expenses, inventory etc.
Send
by
yourself
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creditors at periodic intervals?

confirmation of account
to all the major debtors
by registered or normal
post and keep record of
the same in your audit
file.

c) Does a responsible official review the

confirmations received from the creditors
and look into the differences?
d) Is there an adequate follow up on
differences?
7)

Secured & unsecured Loans:a) Whether any loans was accepted in cash at
any time during the year? If yes, give details
of it?

b) Whether any loan was repaid in cash? If

yes, give details?
c) Does balance in books of account tally
with balance as per the books of loaner?
d) Whether interest charged in the books of
accounts tally with the interest certificate
obtained?
e) Whether interest certificate has been
obtained from loaner? Does it tally with the
books of accounts?
f) Whether T.D.S. has been deducted on
interest paid, where applicable?
8)

Fixed assets: a) Whether print out of all fixed accounts has

been taken?

Take the print of loan

accounts other than loan
from bank and keep it in
your audit file. Also take
Address and PAN no of
parties.

Test checks rate of

interest
and
other
charges charged by the
bank.

Obtain TDS certificate

from the bank.

Verify that is there any

revenue nature item is
capitalized in the books
or vice a versa.

b) Whether addition to fixed accounts has

been fully supported by bills? If yes, whether
photocopies of bills of such addition have
been attached with copy of assets accounts?
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c) Whether proper depreciation have been

charged on fixed assets?
9)

Investments: a) Whether any investments have been made

in shares of any company?
b) If yes, details of such investments be
made like name of company, number of
share, face value of share, purchase value of
shares, date of purchase, quoted or unquoted
shares etc.

10) Stock: a) Whether value of closing stock has been

determined?
b) If yes, whether quantity wise & value
wise details of stock has been prepared?
c) If yes, copy of such detail along with
method of determination of stock be given?
d) What is value of stock as filed with bank?
11) Sales: a) Whether all sales have been accounted
for?
b) Whether sales tax return is filed? If yes,
whether reconciliation of sales as per books
of accounts & as per sales tax return have
been made? If yes, whether a copy of it has
been kept for our records?
c) Is there any difference between sales and
sales tax as per books and as per Sales tax
return
12) Purchases: a) Whether all purchases has been accounted
for?

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Test check with sales

bills.
Make
monthly
reconciliation of sales
and VAT with VAT
return and VAT challans.

1. Verify the same with

purchase bills.
2. Test check rates of
purchases with PO.
3. Whether all the
purchases have been
authorised by competent
authority.
4. Whether purchase is
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recorded in appropriate
accounting head and in
appropriate name.
b) Whether a detail of purchases in the form
of return is filed? If yes, whether
reconciliation of purchases as per books of
accounts & as per return has been made? If
yes, whether a copy of it has been kept for
our records?
13) Salary & Wages: a) Whether salary & wages for all months
including March has been made?

b) Whether salary & wages accounted for

tally with ESI/ P.F. records?

1. Verify salary and

wages with esi/pf return.
2. Whether TDS has
been deducted.
3. Provision for march
has been made.
4. Provision for gratuity
made.
1. Verify salary and
wages with esi/pf return.

c) Whether month wise & employee wise

salary & wages chart has been made?
14) Provision & Prepaid expenses: a) Whether provision for all expenses like
telephone, electricity, water etc. has been
made?

Make provision for FBT,

Income Tax, Gratuity,
Bonus, Salary, Deferred
tax liability and assets
also.

b) Whether prepaid expenses details have

been made?
15) Excise duty
a) Reconciliation of excise duty accounts
with excise record.
b) Emphasis should be given on input
credits.
c) Whether credit of service tax paid on bills
have been taken.
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d) Verify all the figures from excise returns.

16) Service tax
a) Service Tax on goods transport to be takes
care of.
b) Whether Credit of service tax properly
taken.
c) Verify all the figures from service tax
return.
15) Miscellaneous: a) Disclosure of related parties in the form of
details of transaction have been prepared?
b) Whether accounts have been reconciled
with related parties?
c) Whether photocopy of payments as proof
of payments of expenditure like bonus, duty,
cess etc. covered under section 43B of
Income Tax Act has been kept separately?
16) Print out required for auditing:
a) Opening Trial Balance
b) Cash Book
c) Bank Book
d) Journal
e) Bank Reconciliation
f) Sales Reconciliation
g) Purchase Reconciliation
h) Purchase a/c
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Documents required for audit file:

Document index
Appointment letter from client.
Accounting standard check list
Audit Plan.
Questionnaire for audit programme.
Engagement letter.
Management representation letter.
Special observation/ suggestion report.
Audit query sheets.
Partners/ proprietors capital/ current

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account and drawing account.

Repayment schedule of unsecured loan/ car
loan from financial institutions
Bank balance certificate.
TDS certificate from bank and other parties.
Copy of unsecured loan a/c taken/ repaid
during the year with address and Pan of
parties. Also take loan confirmation letter.
Balance confirmation of creditors.
Copy of bills of addition in fixed assets
Proof of investment made during the year
Certificate from the client that all the loans
have been taken or repaid through account
payee cheque.
Certificate from client that all expenses have
been made through account payee cheque.
Copies of TDS, TCS, FBT, Advance tax
challans.
Copies of balance confirmation letter send to
debtors.
Copies of ESI/ PF return.
Proof of payment of payable for ESI, PF,
TDS, TCS, Bonus, Gratuity, Vat, Excise
duty etc.
Ledger account of related parties.
Copies of sales tax return.
Copies of service tax return and challans.
Bank a/c No. , MICR code, Branch BSR
code, Address of Bank is required.
Copy of PAN card of assesses.
Copy of PAN card of directors.
Quantitative details and value of principal
item of closing stock viz. opening stock,
purchases during the year, sale/ material
consumed during the year and closing stock.
Quantitative details and value of finished
goods
viz.
opening,
purchased/
manufactured, sold and closing stock.
In case of company installed capacity and
used capacity.

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