AUDIT AREAS

AUDIT PROCEDURES

Steps to be performed

Acceptance of statutory Audit A Companies Act formalities 1 LETTER 1 : REQUEST BY COMPANY TO CONFIRM WILLINGNESS TO ACT AS AUDITORS 2 LETTER 2: ACCEPTANCE BY AUDITOR - APPOINTMENT WITHIN LIMITS SPECIFIED U/S 224(1B) 3 LETTER 3: REQUEST FOR NO OBJECTION FROM RETIRING AUDITORS 4 BOARD MEETING FOR CALLING EGM 5 EGM - APOINTMENT OF THE AUDITOR 6 RECEIPT OF NO - OBJECTION CERTIFICATE FROM RETIRING AUDITORS 6 INTIMATION BY THE COMPANY FOR APPOINTMENT AS STATUTORY AUDITORS 7 ACCEPTANCE OF APPOINTMENT FILING OF FORM 23B B Engagement letter (Signed by partner as well as the client) Planning meeting to be made with the client Refer Format Refer Format Refer Format Refer Format

1 AUDIT PLANNING

PRELIMINARY MEETING WITH THE CLIENT UNDERSTANDING THE BUSINESS OF CLIENT PLANNING MATERIALITY PREPARATION OF AUDIT PLANNING MEMORANDUM DOCUMENTATION OF EXISTING PROCESSES TESTING OF SAMPLES PREPARATION OF TOC MEMO CASH DEBTORS FIXED ASSETS INVENTORY LOANS AND ADVANCES RECEIVABLES INVESTMENTS CURRENT LIABILITIES PROVISIONS CAPITAL LOANS - SECURED AND UNSECURED CURRENT TAX AND DEFERRED TAX INCOME AND EXPENDITURE

2 TEST OF CONTROLS

3 SUBSTANTIVE PROCEDURES

4 FINANCIAL REVIEW

BALANCESHEET NOTES TO ACCOUNTS SCHEDULE VI QUESTIONNAIRE ACCOUNTING STANDARD CHECKLISTS CARO CHECKLISTS AUDIT REPORT PREPARATION SUMMARY REVIEW MEMORANDUM

5 REPORTING

For documentation of each of these audit areas refer the documentation guidance.

Date on which performed

Performed by

Reviewed by