ABC Chartered Accountants

XYZ Pvt. Ltd.

Statutory Audit for the year ended 31st March , 2020

2 Area : Operating Expenses

2 Understanding :
Operating Expense refers to an expense arising in the normal course of business like repair & maintaina
expense, staff welfare etc. It is an expense common to all company.

2 Work performed :
a Ledger dumps …......
a Samples …..........
a Invoices ….........
a Test of details…...
a Observations ….....

2 Observation :-

2 Conclusion :-
The account balances…......
 the year ended 31st March , 2020

ting Expenses

ense refers to an expense arising in the normal course of business like repair & maintainance, personnel
welfare etc. It is an expense common to all company.

were obtained from the client for expenses for the finanacial year 19_20
selected on high value basis
and related supporting documentswere obtained from the client
was performed by verifying the supporting documents
were noted and communicated to the client

alances…......
e, personnel
ABC Chartered Accountants
XYZ Pvt. Ltd.
Statutory Audit for the year ended 31st March , 2020

Trial Balance for the Financial Year 19-20

GL Code GL Name Debit Credit

1001 Equity Share Capital 100,000

1002 Creditors 500,000
2001 Buildings 100,000
2002 Office Equipments 100,000
2003 Debtors 100,000
2004 Bank 1,400,000
3001 Revenue Income 3,000,000
3002 Interest Income 100,000
4001 Legal & Professional Expenses 500,000 To be tested
4002 Printing & Stationery Expenses 250,000 To be tested
4003 Travelling Expenses 750,000 To be tested
4004 Repairs & Maintenance 500,000 To be tested

Total 3,700,000 3,700,000

ABC Chartered Accountants
XYZ Pvt. Ltd.
Statutory Audit for the year ended 31st March , 2020

Method of Sampling:
Performance Materiality 1,000,000

Sample Size Calculation:

Population 2,000,000
9
Risk Not Significant
Controls Relying on Controls
Extent of Testing Normal

Multiplier 2

Sample Size (rounded up/ based on Chart) 4

Samples verified
Sampling Method High Value Basis

Audit sampling sample size table

The table below is from the ABC Chartered Accountants Audit Approach

Population Size - Multiples of

Performance Materiality
1
2
3
4
5
6
7
8
9
10

(*) The number in red indicate the situations that are impacted by exis
maximum sample size
- The sample sizes represent minimum sample sizes. Engagement Man
determine that, in some circumstances, it is appropriate to increase the
above those in the table
 <link>

<Refer formula>

<<Refer tab Testing>>

the ABC Chartered Accountants Audit Approach Manual

relying on controls Not Relying on Controls

2 3
4 6
8 9
10 12
11 16
9 18
11 21
12 24
14 27
15 30

dicate the situations that are impacted by existence of a

sent minimum sample sizes. Engagement Management may

circumstances, it is appropriate to increase the sample sizes
Credit Party (empty)
ABC Associates
Alok & Co.
DPS Consultancy
SVK Legal Advisors
Total
XYZ & Co.
(empty)
Total Result
Credit Party Count of Debit
ABC Associates 6
Alok & Co. 3
DPS Consultancy 1
SVK Legal Advisors 2
Total 1
XYZ & Co. 2
(empty)
Total Result 15
Legal & Professional Expenses (Mark Samples to be selected in Yellow)

Voucher No. Date Credit Party Debit

210 5-May-19 ABC Associates 2,000

380 30-Jun-19 XYZ & Co. 40,000
402 1-Jul-19 ABC Associates 600
412 5-Jul-19 Alok & Co. 5,000
515 8-Aug-19 SVK Legal Advisors 10,000
644 19-Sep-19 ABC Associates 1,000
720 20-Oct-19 DPS Consultancy 200,000
722 21-Oct-19 ABC Associates 400
826 11-Nov-19 Alok & Co. 10,000
832 12-Nov-19 ABC Associates 500
915 15-Dec-19 XYZ & Co. 75,000
1045 5-Jan-20 SVK Legal Advisors 66,500
1188 2-Feb-20 ABC Associates 1,000
1278 5-Mar-20 Alok & Co. 88,000
Total 500,000
To Be Drawn by Participant for Analytical- Party wise schedule, with amounts, % and count of invoices
unt of invoices
Printing & Stationery (Mark Samples to be selected in Yellow)

Voucher No. Date Credit Party Debit

205 4-May-19 Jagdamba Stationers 50,000

342 3-Jun-19 Bala Agency 75,000
415 7-Jul-19 PJS Printers 21,000
624 10-Sep-19 AKS Printers & Stationers 20,000
854 16-Nov-19 Bachhan Printers 10,000
1280 5-Mar-20 ASD Compilers 55,000
1295 25-Mar-20 Jagdamba Stationers 19,000

Total 250,000
Travelling Expenses (Mark Samples to be selected in Yellow)

Voucher No. Date Credit Party Debit

345 5-Jun-19 Durva Tours & Travels 200,000

510 7-Aug-19 FDS Tours 150,000
650 19-Sep-19 PLK Travels 100,000
712 5-Oct-19 RTU Agencies 75,000
870 19-Nov-19 QWE Tours 202,000
910 12-Dec-19 Indigo Airlines 6,000
1075 19-Jan-20 Jet Airways 17,000

Total 750,000
Repairs & Maintenance Expenses (Scrutinize the ledger)

Voucher No. Date Credit Party Debit

104 1-Apr-19 DLF Maintenance 35,000

180 30-Apr-19 DLF Maintenance 35,000
240 30-May-19 DLF Maintenance 35,000
386 30-Jun-19 DLF Maintenance 35,000
490 30-Jul-19 DLF Maintenance 35,000
570 30-Aug-19 DLF Maintenance 35,000
660 30-Sep-19 DLF Maintenance 35,000
769 30-Oct-19 DLF Maintenance 35,000
890 30-Nov-19 DLF Maintenance 35,000
945 30-Dec-19 DLF Maintenance 35,000
1089 30-Jan-20 DLF Maintenance 35,000
1195 28-Feb-20 DLF Maintenance 35,000
1385 30-Mar-20 DLF Maintenance 35,000
1442 31-Mar-20 ASD Repairs 25,000
1444 31-Mar-20 PQR Repairs 20,000

Total 500,000
ABC Chartered Accountants
XYZ Pvt. Ltd.
Statutory Audit for the year ended 31st March , 2020

Account
Code Account Name Amount

4001 Legal & Professional Expenses 500,000

4002 Printing & Stationery Expenses 250,000.00
4003 Travelling Expenses 750,000.00
4004 Repairs & Maintenance 500,000

Total 2,000,000
 Samples Selected

Total Amount Sample 1 Sample 2 Sample 3 Sample 4 No. of Selection Basis of Selection
<formula> <link> <link> <link> <link> <formula>
- - 1 High Value/ Judgemental
- - 1 High Value/ Judgemental
- - 1 High Value/ Judgemental
- - 1 High Value/ Judgemental

-
Testing covered
as a percentage
of total

0.00%
ABC Chartered Accountants
XYZ Pvt. Ltd.
Statutory Audit for the year ended 31st March , 2020

Test of Details

Details

New
Account
Code As Voucher
S.No. per ERP Account Head Voucher # Date
1 0
4001 Legal & Professional Expenses
2 4002 Printing & Stationery Expenses
3 4003 Travelling Expenses
4
4004 Repairs & Maintenance
 Invoice Taxable Amount as
Vendor Name Invoice # Date Amount GST per invoice TDS

- - -
- - -
- - -

- - -
 Occurrence

Voucher
checked by
Net Amount (Accounts
Paid Currency Decription of Expense Department)
Consultancy Charges for Hearings in the 6 month period April-
- INR Sept' 19 for 2 consultants Deepika
- INR Tour Expenses for the month of May'19 Deepika
- INR Travelling Expenses of Directors for Business meet in England Deepika
Monthly Maintenance Charges of the Building for the Month of
- INR March, 19 Deepika
 Potential Errors
Occurrence Accuracy & Classification

Has the
voucher
been
approved by Are Has
Voucher approved Purchase the Are Invoices original correct
by (Accounts Purchase Order deparmental in the name invoices head been
Department) Order No. Date supervisor of company attached debited
125 1-Apr-19 a a a
Kareena
Kareena 245 5-Apr-19 a a a
Kareena 300 18-Jun-19 a a a
110 1-Apr-19 a a a
Kareena
Accuracy & Classification Completeness Cut off

Whether
Party Are all Does it
Has correct Account vouchers pertain to
amount been has been adequately Payment Payment the correct GST credit is
debited credited supported date Method period taken
a a
5-Nov-19 NEFT Yes
a a 5-Jul-19 NEFT Yes
a a 12-Dec-19 NEFT Yes
a a
5-Apr-19 NEFT Yes
Any other Observation