A Study On Taxation Auditing Services Provided by A Chartered Accountant Firm

A SUMMER TRAINING PROJECT REPORT
A STUDY ON TAXATION,
AUDITING SERVICES PROVIDED
BY A DEWAN & ASSOCIATES
SUBMITTED IN THE PARTIAL FULFILLMENT

FOR THE AWARD OF DEGREE OF BACHELOR
OF COMMERCE
Under The Guidance: Submitted By:
MUKUL HOODA
ROLL NO. : 51524288816
CHANDERPRABHU JAIN COLLEGE OF HIGHER STUDIES &

SCHOOL OF LAW
An ISO 90001:2008 Certified Institute(Approved by the Govt. Of NCT of Delhi
Affiliated To Guru Gobind Singh Inderprasth University, Delhi)
Plot No. OCF Sector A-8 Narela New Delhi-40
STUDENT DECLARATION
This to certify that I have completed the project titled “A STUDY ON

TAXATION, AUDITING SERVICES PROVIDED BY DEWAN &
ASSOCIATE” under the guidance of “……………………………”, in
the partial fulfillment of the requirement for the award of the degree of
“Bachelor of Commerce” for the “Batch 2017-2019” from “CJP College
New Delhi.”
This is an original work and I have not submitted it earlier elsewhere.
Name :
Enrollment No. :
ACKNOWLEDGEMENT
I offer my sincere thankfulness and humble regards to CHANDERPRABHU
JAIN COLLEGE OF HIGHER STUDIES & SCHOOL OF LAW

New Delhi for imparting us very valuable professional training in B.COM.
I pay my sincere regards and gratitude to Prof. …………………………… my project

Guide for giving me the cream of his knowledge. I am thankful to him as he has been
a constant source of advice, motivation and inspiration. I am also thankful to him for
giving his suggestions and encouragement throughout the project work.
I take this opportunity to express my gratitude and offer my thanksgiving to our

computer Lab staff and library staff for providing me the opportunity for utilizing
their resources for the completion of the project.
I am also thankful to my family and friends for constantly motivating me to complete

the project and providing me an environment which enhanced my knowledge.
TABLE OF CONTENTS
Topic Page No
Certificate
SummerTraining Appraisal
Acknowledgement
Executive Summary
Chapter 1: INTRODUCTION
CHAPTER 2: REVIEW OF LITERATURE -
CHAPTER 3:RESEARCHMETHODOLOGY
CHAPTER 4 : DATA COLLECTION

CHAPTER 5: DATA ANALYSIS
CHAPTER 6: FINDINGS AND SUGGESTIONS
CHAPTER 7: CONCLUSION
CHAPTER IV: DATA COLLECTION
References/Bibliography
Appendices
Glossary

EXECUTIVE SUMMARY
The project that I worked upon is titled as “STUDY OF FINANCIAL STATEMENT

& AUDITING SERVICES PROVIDED BY DEVENDRA DAHIYA &
COMPANY”. It was completed after a depth analysis of the particular client’s
Financial statements.
In this project, I have studied the firm’s clients financial statements, analyzing their
growth, performance and any abnormal losses occurrence, which I observed while
assisting the auditor, during the audit of the particular client’s business.
The project also discusses about how chartered accountants firms conducts tax audit
of the client’s companies which is statutory in nature.
The primary data has been collected by obtaining the necessary set of book of
accounts, financial statements, vouchers, past audit reports etc. from the client’s
accounts office. Also, I did a parallel study about the effectiveness of the financial
services rendered by the CA firm and why is it necessary for the companies to get the
audits done.
In this project, I have also mentioned about the various types of advanced auditing,
brief description about the taxation and their usage and necessity along with the
analysis and interpretation of the data, gathered through the primary and secondary
sources. I also gathered information, views of the clients to examine the effectiveness
of the working behavior and the services provided by the CA firm and the extent of
client satisfaction by personally interviewing the staff.
CHAPTER : 1
INTRODUCTION
 CHARTERED ACCOUNTANTS:
Chartered Accountants:
An accounting designation given to accounting professionals in many countries

around the world except the United States. A Chartered Accountant (CA) designation
typically proves the holder has the qualifications to audit financial statements and
business practices as well as offer advisory services to clientele. They enjoy a
statutory monopoly in audit of financial statements under the Companies Act, 2013,
Income Tax Act, 1961 and various other statutes in India. Financial statements
audited by a chartered accountant are presumed to have been prepared according to
GAAP in India (otherwise the audit report should be qualified). However, not all
Chartered Accountants work in audit. Firms of accountants provide varied business
services, and many accountants are employed in commerce and industry. Their areas
of expertise include financial reporting, auditing and assurance, arbitration, risk
management, economics, corporate finance, management accounting, information
systems audit, corporate law, direct tax, indirect tax and valuation of businesses. The
Government of India is now planning to open up a new field of practice in social audit
of government welfare schemes like MGNREGA and JnNURM. Apart from the field
of professional practice, some CAs work in industry and commerce in financial and
general management positions such as CFO and CEO.
 THE INSTITUTE OF CHARTERED ACCOUNTANTS OF INDIA (ICAI):
The Institute of Chartered Accountants of India (ICAI) is a statutory body established

under the Chartered Accountants Act, 1949 (Act No. XXXVIII of 1949) for the
Regulation of the profession of Chartered Accountants in India. ICAI now is the
second largest accounting body in the whole world. The Institute of Chartered
Accountants of India was established under the Chartered Accountants Act, 1949
passed by the Parliament of India with the objective of regulating accountancy
profession in India. ICAI is the second largest professional accounting body in the
world in terms of membership second only to AICPA. It prescribes the qualifications
for a Chartered Accountant, conducts the requisite examinations and grants license in
the form of Certificate of Practice. Apart from this primary function, it also helps
various government agencies like RBI, SEBI, MCA, CAG, IRDA, etc. in policy
formulation.
ICAI's first president was CA G.P. Kapadia (1949 to 1952), CA Manoj Fadnis is the
current president of ICAI and CA M. Devaraja Reddy is current vice president.
ICAI is the only licensing cum regulating body of the financial audit and accountancy
profession in India. It recommends the accounting standards to be followed by
companies in India to The National Financial Reporting Authority (NFRA) and sets
the accounting standards to be followed by other types of organizations. ICAI is
solely responsible for setting the auditing and assurance standards to be followed in
the audit of financial statements in India. It also issues other technical standards like
Standards on Internal Audit (SIA), Corporate Affairs Standards (CAS) etc. to be
followed by practicing Chartered Accountants. It works closely with the Government
of India, Reserve Bank of India and the Securities and Exchange Board of India in
formulating and enforcing such standards. Members of the Institute are known as
Chartered Accountants. Chartered Accountants are subject to a published Code of
Ethics and professional standards, violation of which is subject to disciplinary action.
Only a member of ICAI can be appointed as statutory auditor of an Indian company
under the Companies Act, 2013. The management of the Institute is vested with its
Council with the president acting as its Chief Executive Authority. A person can
become a member of ICAI by taking prescribed examinations and undergoing three
years of practical training. The membership course is well known for its rigorous
standards. ICAI has entered into mutual recognition agreements with other
professional accounting bodies world-wide for reciprocal membership recognition.
ICAI is one of the founder members of the International Federation of Accountants
(IFAC), South Asian Federation of Accountants (SAFA), and Confederation of Asian
and Pacific Accountants (CAPA). ICAI was formerly the provisional jurisdiction for
XBRL International in India.
REGULATIONS:
Rules made by the Central Government
The Chartered Accountants Act & Regulations
 For Membership:
 Enrolment as Member
 Grant of Certificate ofPractice
 Payment of Membership Fees
 Removal of Name
 Restoration of Name
 Cancellation of COP
 Restoration of COP
 Training of Articled Assistant
 Issue of Duplicate Certificate
 Change in the Name of Member
 Change in Professional Address
Firm
 Approval of Trade/Firm Name

 Registration of Firm
 Maintenance of Branch Office
 Change in Constitution of Firm
 Revised Guidelines of Network
 Rules of Merger-Demerger
 Practice in Corporate Form
COMPANY’S PROFILE:
Devendra Dahiya & company is a One Stop Shop Solutions for all your Financial,
Accounting, Taxation and Investments Needs. At DD & Co. we have a Very
Qualified Team of Experienced Chartered Accountants, Company Secretaries,
MBA's, and Cost Accountants too. It was established in the year 2009. It is a leading
chartered accountancy firm rendering comprehensive professional services which
include audit, management consultancy, tax consultancy, accounting services,
manpower management, secretarial services etc.
They are registered with the ICAI and are eligible to offer following chartered
accountant services:
» Accounting Services
» Auditing Services
» Income Tax Services
» Societies and Trust Consultancy
» Sales Tax matters Consultancy
» Service tax matters Consultancy

 Accounting Services
They offer highly efficient accounting services which are provided by them for their
clients. They also offer design, implementation and review of accounting manual.
Their accounting services are offered at market leading rates.
 Design, implementation and review of accounting manual

 Advice on various accounting issues including those related to Indian GAAPs.
 Auditing & Assurance Services
They are blessed with team of qualified chartered accountants highly efficient in
auditing and assurance services. Their wide range of services are aimed for financial
stability of the clients and take care of the decision making abilities. The services they
provide are in compliance with the legal environment.
 Statutory audit ▪ Company Audit

 Internal Audit ▪ Tax Audit
 Income Tax Services
They specialize in providing Income tax services to individuals, small scale and
medium scale businesses which are highly effective and efficient. Our range of
services include preparation of returns, getting assessment done, TDS and
withholding tax compliance, fringe benefit tax compliance and income tax appeals
before CIT and ITAT.
 Preparation of return
 Getting Assessment done
 Consultancy in tax matters & tax planning
 TDS & Withholding tax compliance
 Income Tax Appeals before CIT (Appeals)
 Income Tax Appeals before ITAT
 Societies and Trust Audit
They are engaged in providing auditing services to societies and trust consultancy to
their clients.
 Service Tax Matters Consultancy
They have rich experience in offering service tax matters consultancy which are vital
in the current scenario. Our range of services include filing of returns, maintenance of
records and They also properly assess the situation of our clients. The consultancy is
provided by them at market leading rates.
 Registration
 Filing of return
 Maintenance of Records
 Assessment
Major 10 clients:
 BANSAL STATIONERS
 ANV HEALTH SERVICES
 SA RUBBER INDIA PVT. LTD.
 BABA ROTO PRINT PVT. LTD
 DEEPAK ACRYLIC HOUSE
 DELHI ACRYLIC HOUSE
 M/S SHIV ENGINEERING
 PUNEET & CO.
 AKSH INTERNATIONAL
 JAI AMBE AGENCY
CHAPTER : 2
LITERATURE REVIEW
The literature review is an abstract of the reference books and webliography
that is used for helping in the making of the project – “STUDY OF
FINANCIAL STATEMENT & AUDITING SERVICES PROVIDED BY A
DEVENDRA DAHIYA & COMPANY.”
“Audit of accounts in the corporate sector was always mandatory by virtue of

the provisions of The Companies Act, 1956. Realizing the importance of audit
this requirement has been extended to non-corporate assesses. Since by virtue
of sec 44AB all assesses irrespective of their nature, if they fulfill the criteria as
laid out in the section have to get their accounts audited.
The intention of bringing in this piece of legislation as observed by the Finance
Minister while presenting the Union Budget for 1984-85 is the compulsory
audit is intended to ensure proper maintenance of books of accounts and other
records, in order to reflect the true income of the tax payer and to facilitate the
administration of tax laws by a proper presentation of the accounts before the
tax authorities. This would also save the time of the Assessing Officers
considerably in carrying out the verification.
The limits of turnover have been in place for the past 16 years as a result the
number of assesses under the ambit of sec 44AB has risen alarmingly. There is
a need to revise the turnover limits upwards since only then will it be able to
help the Assessing Officers to pay special attention to such assesses .The
situation at present is that the Assessing Officers are inundated with a plethora
of Tax Audit Reports which has increased the burden on the taxman naturally
affecting the quality of assessments.”
-PROF. PRAKASH PEGADWALA,

SVKM’S NARSEE MONJEE COLLEGE OF
COMMERCE &ECONOMICS, 2017
The Effect of Tax Audit on Tax Compliance in Nigeria (A Study of Bauchi
State Board of Internal Revenue):
This paper assesses the effect of Tax audit on tax compliance in Nigeria a case
of Bauchi State Board of Internal Revenue. The methodology employed for
data collection is only primary source, which involved the use of
questionnaires, in which 48 questionnaire were administered to the staff of
Bauchi State Board of Internal Revenue, some selected individuals tax payers
and corporate bodies within Bauchi State out of which only 42 questionnaires
were completed and returned. The data generated for the study were interpreted
using simple percentage. The main finding of the study include among other;
the Relevant Tax Authority (RTA) employed tax audit towards achieving
target revenue, that tax audit reduce the problems of tax evasion, that tax
payers do not usually cooperated with tax audit personnel during the exercise.
etc The paper recommends that; the RTA at all levels should improve the
standard of tax audit employed for effectiveness and efficiency, tax audit
should aim at reducing the level of tax evasion and RTA should provide a
policy that would allow the tax payers to cooperate during the period of tax
audit.
- MU’AZU SAIDU BADARA
DEPARTMENT OF ACCOUNTING
ABUBAKAR TATARI ALI POLYTECHNIC BAUCHI
(Research Journal of Finance and Accounting)
(Vol. 3, No 4, 2012)
ABOUT THE TOPIC -
“STUDY OF FINANCIAL STATEMENT & AUDITING SERVICES

PROVIDED BY A CHARTERED ACCOUNTANT FIRM”
The project is regarding a study of the taxation, auditing service provided by the
chartered accountancy firms to the clients by helping them for the maintenance of
accounts and also guiding the clients ( individuals or firms ) about the income tax
filing services as well conducting statutory audits for the companies for monitoring
their efficiency as well as helping to file the Income tax , Sales Tax, DVAT, VAT for
the firms/companies and income tax , TDS returns for the individuals.
AUDITING:
Auditing refers to a systematic and independent examination of books, accounts,

documents and vouchers of an organization to ascertain how far the financial
statements present a true and fair view of the concern. It also attempts to ensure that
the books of accounts are properly maintained by the concern as required by law.
Auditing has become such an ubiquitous phenomenon in the corporate and the public
sector that academics started identifying an "Audit Society". The auditor perceives
and recognizes the propositions before him/her for examination, obtains evidence,
evaluates the same and formulates an opinion on the basis of his judgment which is
communicated through his audit report. Any subject matter may be audited. Audits
provide third party assurance to various stakeholders that the subject matter is free
from material misstatement. The term is most frequently applied to audits of the
financial information relating to a legal person. Other areas which are commonly
audited include: internal controls, quality management, project management, water
management, and energy conservation.
As a result of an audit, stakeholders may effectively evaluate and improve the

effectiveness of risk management, control, and the governance process over the
subject matter.
KINDS OF AUDITS:
i. STATUTORY AUDIT:
Statutory Audit is compulsory audit prescribed under statute i.e. law. Appointments
of auditors, removal, remuneration, rights, duties, liabilities are governed as per the
Provisions of the respective law applicable to the organization. Scope of the audit
work and all others terms are as laid down by the law. It can be conducted only by a
qualified Chartered Accountant. Statutory audit is conducted after preparation of
final accounts. Statutory auditor has to report whether the balance sheet and profit
and loss A/c are drawn upon conformity with law and whether they show true and fair
view. Statutory auditor has to submit report to the shareholder. His remuneration is
fixed by shareholder.
ii. TAX AUDIT:
Statutory audits as well as the cost audit are taken up as result of specific provisions
contained in the companies Act, 1956. However, a new concept of tax audit has been
evolved lately under the Income Tax Act, 1961. In India, the Indian Income Tax Act,
1961, provides for compulsory audit of accounts of certain assesses whose turnover or
receipts exceed the specified limit. The Income Tax Act has provided for rules and
regulations regarding tax audit. The tax audit can be undertaken by the practicing
member of the institute of Cost and Works Accountants of India. The objective of
such audit is to assist the tax authorities in determination of correct tax liability. The
tax auditor has to report about the transactions which have an effect on fixation of tax
liability.
The tax audit was introduced by section 11 of the Finance Act, 1984, which inserted a
new section 44AB with effect from 1st April, 1985 [Assessment Year 1985-86]. This
section makes it obligatory for a person carrying on business to get his accounts
audited by a chartered accountant, and to furnish by the „specified date‟, the report in
the prescribed form of such audit, if the total sales, turnover or gross receipts in
business in the relevant previous year exceed or exceeds the prescribed limit (Rs.1
Crore w.e.f. A.Y. 2013-14).
o For a professional, the provisions of tax audit become applicable, if his gross receipt
in profession exceeds the prescribed limit (Rs.25 Lakhs w.e.f. A.Y. 2013-14) in the
relevant previous year.
The Tax Audit Reports u/s 44AB has been modified substantially by a notification
issued by Ministry of Finance .The revised audit reports contain an extensive list of
items on which an auditor has to give specific report on .The revised Report places an
onerous responsibility on the auditor to conduct extensive checking of the books of
accounts and other records based on which he shall give his audit report.
Prior to the introduction of this section in the Income Tax Act, the Act provided for
the audit of Public charitable trusts and non-corporate assesse establishing new
industrial, undertakings. Also, the Income Tax authorities where given the discretion
to get the accounts audited under certain specified circumstances under sec 142(2A),
by a Chartered Accountant. The introduction of sec 44 AB widened the scope of audit
under the Income Tax Act considerably.
“ The audit report in prescribed form should be obtained from the auditor and filed
with the Return of Income. The tax auditor cannot accept more than 30 tax audit
assignments in a financial year.”
Section Business Covered
44AD Eligible Business
44AE Transport Business
44B Shipping Business of a non-resident
44BB Providing service or facilities in

connection with, or supplying plant and
machinery on hire used, or to be used, in
the prospecting for, or extraction or
production of, mineral oils
744BBA Operation of aircraft by non-resident
44BBB Civil construction etc. in certain turnkey

power project by non-residents
Any Other Relevant Section This refers to the sections not listed above
under which income may be assessable on
presumptive basis like section 44D and
section 115A(1)(b) and will include any
other section that may be enacted in
future for presumptive taxation
Compulsory Tax Audit v/s 44AB:
Under the above section, tax audit is compulsory for a person carrying on any
business or profession if:
› In the case of business whose total sales turnover or gross receipts exceed
Rs.40,00,000 in the previous year, and
› In the case of a profession, if the gross professional receipts’ in the previous year
exceed Rs.10,00,000.
› In the case of an assessee covered under sections 44AD, 44AE, 44BB or 44BBB.
Special Features of Audit:
a) Audit Procedures: The nature and extent of audit procedures and working papers are
influenced by special features of SE described as above.
b) Fraud and Errors : Auditor should check the following circumstances which indicate
the possibility of fraud and Errors:
 Whether owner needs to manipulate the accounts (as the SE is his only source of
income).
 Whether personal and business transactions are mixed up.
 Whether advisor (lawyer, etc) are changed frequently.
 Whether advisor starts too late or has to be finished in a hurry.
 Whether there are unusual material transactions around year-end.
 Whether there are unusual transactions with group concern.
 Whether excessive fees/ commission is paid.
 Whether there disputes about taxes.
 Whether accounting records are partly missing.
 Whether cash transactions are too many.
 Whether documents for many transactions are inadequate.
 Whether many confirmations for debtors/stock have not been received back.
 Whether owner/senior manager have not been leave for long period.
 Whether working capital is insufficient.
 Whether remarks in earlier audit report are ignored.
 Whether stock records are not kept.
c) Audit Evidence:
i. Adequate audit evidence may not be available. The owner may want that some
transactions are not recorded at all. The internal controls, which should generate the
documents, may be weak.
ii. Auditor should focus on cross-checking of data, quantity reconciliations, analytical
review, external confirmations and review of transactions after year-end.
d) Audit Planning: Audit of a Se may be done by a sole C.A. Hence, audit planning will
be simple.
e) Management Certificate: Auditor should obtain a written certificate from the owner
that the accounting records/ financial statements are complete and accurate.
f) Analytical Review: Evaluating the Gross Profit Ratio over years/trade is often very
helpful in case of a SE.
g) Audit Sampling: In view of the small size, it may be possible to check 100% entries
or at least select a; large sample size for checking.
CHAPTER : 3
RESEARCH
METHODOLOGY
PURPOSE OF THE STUDY:
The purpose is to study about the taxation and auditing services provided by the CA
firms. While assisting the CA / auditor doing the tax audit for the various clients’
companies, I also, examined the effectiveness and benefit of the services provided by the
CA firms to their respective clients and observing the level of satisfaction of the clients.
RESEARCH OBJECTIVES OF THE STUDY:
 To examine the necessity of conducting the audits for the clients, why it is a requisite for
the firms to get the Audits done of their financial accounts and the timely filing of the
taxes levied on them.
 For examining whether the services provided by the CA firms are satisfactory and the
activities are conducted while maintaining the authenticity and confidentiality for the
client companies or not.
 To learn about what is taxation and auditing, how they are made mandatory and why it is
necessary for companies, individuals to pay taxes
RESEARCH METHODOLOGY ADOPTED :
The study is based on analytical method. The primary data is collected by personal
collection of the book of accounts of the mentioned clients and thereby conducting the
tax audit, along with interviewing the staff for knowing the views, comments and
confidence regarding the performance of audit, taxation and consultancy services given
by the CA firms.
The primary data is collected by interviewing the internal staff of the client companies.
The secondary data is collected from the books and websites.
RESEARCH DESIGN:
The research design is of Descriptive type since it involved in studying the in-depth
analysis of the data of the clients and only after analyzing the task of performing the
tax audit on the financial statements provided by the clients would be performed.
SAMPLING PLAN:
The sample that was taken was the number of the clients for whom I had personally
assisted the CA while conducting the tax audit function.
SAMPLE SIZE :
The sample that was taken was the number of the clients for whom I had personally
assisted the CA while conducting the tax audit function. Hence, The study was
performed on the 6 major clients.
SAMPLE POPULATION:
The sample area consists of the number of the clients for whom I had personally
assisted the CA while conducting the tax audit function. Hence, The study was
performed on the 6 major clients.
CHAPTER : 4
DATA COLLECTION
METHOD OF DATA COLLECTION:
DATA SOURCE:
The data required for conducting of the study was collected from the primary sources
of data, namely, from the accounts office of the clients for whom I had personally
assisted the CA while conducting the tax audit function. Also, for performing the
tallying function of the Sales tax figures, for the matching of the figures, the data was
also gathered from the Income tax department websites, the website of Sales tax,
VAT/DVAT/CST etc.
o Primary Sources: Client’s Companies Accounts Office

o
o Secondary data: Registrar of Companies, Income Tax Department, Sales tax,
o VAT/DVAT/CST websites etc.
ANALYSIS TECHNIQUE:
The data collected from the offices was analyzed using accounting methods and
techniques. For the diagrammatic representation, Pie charts, Bar diagrams are used to
reach at the conclusions. Findings are made on the basis of analysis of the data
gathered from the primary and secondary sources. Recommendations are made on the
basis of findings drawn from various data collected and also based on the observations
for the areas where corrections can be made.
LIMITATIONS:
o The study was limited to few departments in the organizations.

o Unavailability of executives in their cabins as they were engaged in field work at that
time.
o Since, the study is based on personal learning experience, possibility of errors cannot
be ruled out.
o Since the report is based on the primary data and personal interview, there is a
possibility of occurrence of false judgment and biased opinion of the auditor.
CHAPTER 5:
DATA ANALYSIS
1.
2.
3.
4.
5.
6.
7. COMPANY 1:
M/s S.A.RUBBER (INDIA)

[147, VILLAGE BURARI (GARHI) ,DELHI-110009]
TRADING AND PROFIT &LOSS ACCCOUNT

FOR THE YEAR ENDED 31.03.2017
PARTICULARS AMOUNT PARTICULARS AMOUNT
To Opening Stock 3647222.00 By Sales 8192388.06
By Closing Stock
To Purchases 5078269.49 (BO) 3708000.00
To Bonus Exp 82630.00
To Electricity Exp 273288.00
To E.S.I Exp 76625.00
To Wages 677465.00
To Carriage Inward 4249.00
To Gross Profit 2060639.57
11900388.06 11900388.06
To Accounting Charges 48000.00 By Gross Profit 2060639.57
To Courirer& Postage 344.00 By Interest 1492.00
By Sale of empty
To Electricity (office) Exp. 13870.00 drums 34000.00
To Freight & Forwarding By Sale of scraps
Charges 1050.00 &rakhs 9423.50
To House Tax 11848.00 By Dividend 1500.00
To Insurance Exp 2046.00
To Bank Interest 34987.08
To Interest on TDS 639.00
To ISO Exp 7866.00
To Legal Exp 3000.00
To Licence Fees 5900.00
To Manufacturing Exp 13692.00
To MiscExp 5334.00
To Car hiring charges 120000.00
To Salary 658950.00
To Telephone Exp 1200.00
To Bank Charges 17954.24
To DeprectionExp 220478.40
To Interest on Loan 378845.10
To Licence Fees (I.S.I ) 35057.00
To Petrol & Diesel 10500.00
To Printig& Stationery 8385.00
To Rent 65510.00
To Short & Excess 1063.23
To Cess to Rubber Board fee 4681.00
To Net Profit 435855.02
2107055.07 2107055.07
BALANCE SHEET AS ON 31.03.2017

LIABILITIES AMOUNT ASSETS AMOUNT
CAPITAL
ACCOUNT FIXED ASSETS
Opening
Balance 2863157.58 Branch Office 2938421.70
Add Addition 1050000.00 Head Office 657213.00 3595634.70
Add profit &
Loss 435855.02
CURRENT
4349012.60 ASSETS
Less Home
Loan 250440.00 Closing Stock 3708000.00
Less Drawing 470000.00 3628572.60 UP Vat (C/F) 5578.39
Prepaid
Insurance 22510.00 3736088.39
LOAN AND
ADVANCES 4580843.30
As per
Schedule Sundary
attached Debtors
As per
Schedule
attached 395639.59
BANK Advance to
OVERDRAFT Suppliers 770686.00 1166325.59
Canara Bank 683188.25
A/C
No.026726172
086
Security
Deposit
Sundry
Creditors (as
per schedule
attached) 387628.00 Sh. A.K. Jain 35927.00
Electricity
Security 23992.00
Telephone
Provisions Security 2010.00 61929.00
ESI 7295.00
CASH AND
TDS 37885.00 BANK
Salary Payable 42261.00 Cash in Hand 909083.97
Canara Bank
Wages Payable 67852.00 SB A/c 3518.64
The Vaish
Coop, Bank
CST 65154.14 (H.O) 33099.00 945701.61
Rent 5000.00 225447.14
9505679.29 9505679.29
STATEMEN
T OF
ASSESSABL AMOUNT
E INCOME (Rs)
INCOME
FROM
BUSINESS
OR
PROFESSIO
N
As per Profit
& Loss A/c 435855.02
INCOME
FROM
House
Property
Interest paid (3480-
on self 1160-
occupied 696-
house 119954
property ) -118330.00
INCOME
FROM
CAPITAL
GAIN
Sale
Consideration 14980000
Less Transfer
cost 749000
Net
Consideration 14231000
Inexed Cost
of Purchase
and
Improvement
s
1983-84 82819 731092
1984-85 80912 662831
1985-86 106750 821895
1986-87 50000 365714
1987-88 35000 238933
355481 2820465
11410535
Less invested
in capital gain
scheme 7945200 3465334.68
INCOME
FROMOTH
ER
SOURCES
Bank interest 66452
FDR Interest 209070 275522.00
GROSS
Income 4058381.70
Less:Under
chapter VI-A
U/s 80C 30000.0
PPF 0
u/s 80C
Principal but
amount of 130486. restrict
House Loan 00 ed 150000
U/s 80TTA
Bank Intt 10000 160000.00
Total Income 3898381.70
Rounded off 3898380.00
TAX
COMPUTA
TION:
special
Tax on above rate 3465330 @0.20 693066
normal
rate 433050 @0.10 13305 706371(*1)
Add:
Education
Cess @ 3% 21191
Total Tax
Due 727562
Add: Interest 10416
Total Tax &

Interest 737978(*2)
Tax Paid TDS 177739

Advance
Tax 401000
Self
Assess
ment Tax 159239 737978
(*1)-(NORMAL RATE -300000) X 0.1
(*2) -(TOTAL TAX DUE + INTEREST)
FINANCIAL RATIOS:
GROSS PROFIT RATIO = Gross Profit x 100

Sales
= (2060640/ 8192388 ) x 100 = 25.15%
NET PROFIT RATIO: = Net Profit x 100
Sales
= 435855 x 100
8192388
= 5.3%
STOCK IN TRADE
TURNOVER RATIO: = Closing Stock x 100
Sales
= 3708000 x 100
8192388
= 45.26%
FINANCIAL RATIOS
NPR,
17.95383924
GPR,
44.36948371
ANALYSIS:
The financial ratios pie chart shows that STR is at 60% while the GPR & NPR are at
33% & 7% respectively stating that while the firm is making profit it is maintaing a
higher stock in trade turnover ratio which suggests that the businesses need to hold
stock for a longer period.
TAX COMPUTATION
4500000
4000000
3500000
3000000
2500000
2000000
Series1
1500000
1000000
500000
0
GROSS Total Income Tax on above Total Tax &
Income Interest Paid
Analysis:
The tax computation chart shows the total taxes payable for the firm after sucessful
deductions from the gross total income. It shows that since, the total income to be
taxable was at Rs.38,98,380, hence, after the deduction of tax slabs it falls under and
calculating by special and normal rates, the tax payable amount is derived at and which
is higher in this case at Rs.737978
8.
9.
Company2:
M/s BANSAL STATIONERS
WZ- A-252, Gali No. 7, uttam Nagar, New Delhi-110059
TRADING AND PROFIT &LOSS ACCCOUNT

FOR THE YEAR ENDED 31.03.2017
PARTICULARS AMOUNT PARTICULARS AMOUNT
To Purchases 3683378.00 By Discount on purchase 826657.00
By Closing Stock (BO) 691500.00
11309873.00 11309873.00
To Audit &DSC Fee 7500.00 By Gross Profit 414995.00
To Bank Charges 810.00 By Interest on Security 45000.00
To Car
Running&maint 28450.00 By Rebate & Discount 3.00
To car insurance 5252.00
To Conveyance Exp. 14215.00
To Depreciation 25259.00
To Miscellaneous
Expenses 921.00
To Sales Promotion 16045.00
361546
To Net Profit
459998.00 459998.00
BALANCE SHEET
For the year ending 31.03.2017

CAPITAL FIXED ASSETS 143132.00
ACCOUNT
Opening Balance 1892117
230252.
Add Addition 00
361546.
Add profit 00
2483915
.00 CURRENT ASSETS
Sundary Debtors 920762.00
111550.
Less Drawing 00 2372365.00
Advance to
Suppliers 1689406.00
UNSECURED
LOANS 571000.00 DVAT 9321.00
Closing Stock 691500.00
CURRENT LIABILITIES
Sundry Creditors 687285.00 CASH AND BANK

Cash in Hand 13473.00
PAYABLES & PROVISIONS Canara Bank A/c 165246.40
DVAT 2190.00
3632840.00 3632840.00
Statement Of Assessable Income
Source Of Income Amount(Rs)
Income From Business

Net Profit from Business 361546.00
Income From Other Sources

Bank Interest 4000.00
Gross Total Income 365546.00
Less:Deduction Under Chapter

VIA
Deduction Under Section 80C -
LIC Premium 31305.00
Deduction Under Section
80TTA - Bank Intt 4000.00 35305.00

Rounded Off 330240.00
Tax
Computation
Tax On Above 8024
Less: Rebate u/s 87A 2000
6024
Add:EducationCess @ 3% 181
Total Tax Payable 6205
Tax Paid 6205
FINANCIAL RATIOS
NPR,
STR, 3.692366078 NPR
7.062092079
GPR
GPR, STR
4.238225455
ANALYSIS:
28% & 25% stating that while the firm is making profit it is maintaing a higher stock
in trade turnover which suggests that the businesses need to hold stock for a longer
period
TAX COMPUTATION
350000
300000
250000
200000
150000
100000
50000
0
Total Tax Payable Tax On Above Total Income
ANALYSIS:
The tax chart shows the total taxes payable for the firm after sucessful deductions from
the gross total income. It shows that the total income to be taxable was at Rs.365546 &
after the deduction of tax under the tax slabs, the tax payable amount is derived at Rs.
6205 and it is less in this case.
COMPANY 3:
M/S PUNEET & Company
14, SADAR BAZAR ,DELHI-110006
Trading & Profit & Loss Account

(For The Year Ending 31st March,2017)
Particular Amount Particular Amount
To Purchases 11506985.00 By closing Stock 528700.00
To Cartages 15903.00
To Wages 432000.00
14316816.00 14316816.00
To Account Charges 40000.00 By Gross Profit 1829528.00
To Advertisement Exp. 138465.00 By Excess & Short 208.00
To Audit Fee 20000.00
To Car Insurance 15272.00
To Car Maintenance 12500.00
To Commission 65000.00
To Intt. Paid on Car
Loan 31857.27
To Intt. Paid on Other
Loans 17974.78
To Job Labour Charges 312240.00
To Legal Expenses 26000.00
To Postage Exp. 17000.00
To Printing &
Stationery 1302.00
To Rent 168000.00
To Salary 186000.00
To Staff Welfare 19600.00
To Telephone Exp. 840.00
To Net Proffit 558915.85
1829736.00 1829736.00
BALANCE SHEET
(For the year ending of 31st March 2017)

CAPITAL A/C FIXED ASSETS
Opening Balance 1320691.70 716064.00
Add:Profit 558915.85
1879607.55 CURRENT ASSETS
Less:Drawing 258789.00 1620818.55 Sundry Debtors
3269833.00
Advance to
SECURED LOANS Suppliers
HDFC Bank 296480.94 158492.00
HDB Finance 27625.02 324105.96
CURRENT LIABILITIES DVAT Refund 473144.00
Sundry Creditors VAT Input 73436.00
2946470.00
Advance From CASH & BANK
Customers
944000.00 Cash In Hand 465788.00
Yes Bank 430.30
PAYABLES &
PROVISIONS ICICI Bank 177064.71
Accounts Charges The Kangra Co-Op
Payable 10000.00 Bank Ltd. 2442.50
Audit Fee 20000.00 30000.00
5865394.51 5865394.51
STATEMENT OF
ASSESSABLE INCOME AMOUNT(Rs)
INCOME FROM
BUSINESS OR
PROFESSION
As per Profit & Loss A/c 558915.85
INCOME FROMOTHER
SOURCES
Bank interest 7500.00
GROSS TOTAL INCOME 566415.85

Less:Under chapter VI-A
u/s 80C LIC 66751.00
maximum
u/s 80D Mediclaim 22704 to 15000.00
u/s 80TTA 7500.00 89251.00
Rounded off 477160.00
TAX COMPUTATION
Tax on above 22716

20716
Add: Education Cess @ 3% 621
Add: Interest u/s 234B &

234C 2067
Total tax payable 23404
Tax Paid 23404

FINANCIAL RATIOS
STR,
3.834461503
GPR
NPR,
GPR, NPR
4.053605656
13.26887589
STR
ANALYSIS:
63% & 19% stating that while the firm is making higher gross profit, it is also
maintaing its stock in trade turnover which suggests that there is fast movement of
stock and hence, the businesses do not need to hold their inventory for longer time.
TAX COMPUTATION
350000
300000
250000
200000
150000 Series1
100000
50000
0
Total Income Tax on above Total Tax payable
ANALYSIS:
deductions from the total income. It shows that since, the total income to be taxable
was at Rs., 477164.85, hence, after the deduction of tax slabs it falls under, the tax
payable amount is derived at Rs.23404 and which is less in this case.
COMPANY 4:
M/s Akshh International
Prop: Vikas Gupta
3033/2,II/F ,ChunaMandi ,PaharGanj,New Delhi-55

To Gorss Profit 2569111.25
71359440.00 71359440.00
To Accounts Charges 28500.00 By Gross Profit 2569111.25
To Audit fee 10000.00 By Excess & Short 6336.70
To Conveyance 18000.00
To Intt. Paid on Loans 1087936.00
To Rent 30000.00
To Salary 360000.00
To Trade Discount 444.00
To Travelling Exp. 144750.00
2575447.95 2575447.95
BALANCE SHEET
(For the year ending of 31st March 2015

CAPITAL A/C FIXED ASSETS
(As Per Annexures
Opening Balance 7493462.32 "A") 774936.00
Add:Addition 770000.00
Add:Profit 664630.35 CURRENT ASSETS
8928092.67 Sundry Debtors
(As Per Annexures
Less: Drawing 240000.00 8688092.67 'C') 10690482.00
UNSECURED LOANS 9602629.00 Security 23500.00
Special Additional
CURRENT LIABILITIES Custom Duty 3483713.50
Sundry Creditors 2254791.85
Advance From
Customers
2730519.00 CASH & BANK
Cash In Hand 983.56
PAYABLES &
PROVISIONS Yes Bank Ltd 360065.46
Audit Fee Payable 10000.00
VAT Payable 275189.00
CST Payable 56962.00
TDS Payable 108794.00 450945.00
23726977.52 23726977.52

Source Of Income Amount(Rs)


Less:Deduction Under Chapter VIA
Deduction Under Section 80C - LIC
Premium 21308.00
Deduction Under Section 80TTA - Bank
Intt 1000.00 22308.00

TAX COMPUTATION
Tax On Above *39332

37332
Tax Paid 38452
*(Taxable Income roundoff -250000) x 0.1
FINANCIAL RATIOS
NPR, 3.692366078
NPR
STR, 7.062092079 GPR
STR
GPR, 4.238225455
ANALYSIS:
28% & 25% stating that while the firm is making profit it is maintaing a higher stock
in trade turnover which suggests that the businesses need to hold stock for a longer
period
TAX COMPUTATION
350000
300000
250000
200000
150000 Series1
100000
50000
0
ANALYSIS:
taxable was at Rs.643322, hence, after the deduction of tax slabs it falls under, the tax
payable amount is derived at Rs. 38452 and which is less in this case.
COMPANY 5:
M/s Delhi Acrylic Co.

Prop: DevenderSah
Khasra No. 155/70, Ground Floor, Village PoothKhurd, Delhi - 110039

By closing
To Purchases 13239427.00 Stock 258600.00
To Cartage-Inward 63225.00
To Gorss Profit 1099739.00
14921891.00 14921891.00
By Gross
To Accounts Charges 12000.00 Profit 1099739.00
To Audit fee 7500.00
To Bank Interest 937.00
To Conveyance 32400.00
To Electricity Exp 96200.00
To Fright & Forwarding 29000.00
To Professional Charges 8500.00
To Rent 120000.00
To Salary & Wages 432000.00
To Staff welfare 22175.00
1099739.00 1099739.00
BALANCE SHEET
(For the year ending of 31st March 2017)

CURRENT
CAPITAL A/C ASSETS
Opening Balance 285977.00 Sundry Debtors
Add: Addition 550000.00 5273719.00
Add: Profit 314000.45 Closing Stocks 258600.00
1149977.45
Personal
Less: Drawing 180000.00 969977.45 Investment 1268000.00
PNB FDR 1800000.00
UNSECURED LOANS
AshaYadav 1150000.00 CASH & BANK
NeealmYadav 1750000.00 2900000.00 Cash In Hand 37775.00
Yes Bank Ltd 117452.00
Punjab National
PNB OD A/c 1591050.00 Bank 1941243.45
CURRENT LIABILITIES
Sundry Creditors
4869791.00
Advance From
Customers
329429.00
EXPENSES PAYABLE
Accounting Charges 19200.00
Audit Fee 7500.00
CST 1342.00
Professional Charges 8500.00 36542.00
10696789.45 10696789.45
SOURCES OF INCOME Amount(Rs)



Less:Deduction Under Chapter VIA
25308.
Deduction Under Section 80C - LIC Premium 00
1500.0
Deduction Under Section 80TTA - Bank Intt 0 26808.00

Tax Computation
Tax On Above 3869
1869
Tax Paid 1925
FINANCIAL RATIOS
STR,
1.76
GPR
NPR, 2.14 NPR
GPR, 7.50
STR
ANALYSIS:
66% & 19% stating that while the firm is making higher gross profit it is maintaing its
stock in trade turnover which suggests that there is faster movement stock and hence,
the businesses do not need to hold higher inventory
TAX COMPUTATION
350000
300000
250000
200000
150000 Series1
100000
50000
0
ANALYSIS:
The tax chart shows the total taxes payable for the firm after sucessful deductions from
the gross total income. It shows that the total income taxable was at Rs. 288692.45,
after the deduction of tax, the tax payable amount is derived at Rs. 1925 and it is less in
this.
COMPANY 6:
M/s Shiv Engineering
Prop: Ashok Shukla
R-9A/A, Gali No.11, Anand Parbat Industrial Area ,New Delhi-5

To Cartages 15904.00
To Wages 332000.00
2525520.00 2525520.00
To Account Charges 40000.00 By Gross Profit 1494724.00
To Advertisement Exp. 106665.00 By Excess & Short 508.00
To Audit Fee 25000.00
To Commission 65000.00
To Intt. Paid on Car Loan 31857.27
To Intt. Paid on Other Loans 17974.78
To Job Labour Charges 112240.00
To Legal Expenses 26000.00
To Postage Exp. 17000.00
To Printing & Stationery 1302.00
To Rent 198000.00
To Salary 176000.00
1495232.00 1495232.00
FINANCIAL RATIOS
STR,
27.11367915 GPR
GPR, NPR
75.23197874
STR
NPR, 21.17010348
ANALYSIS:
61% & 17% stating that while the firm is making higher gross profit it is maintaing its
stock in trade turnover which suggests that there is faster movement stock and hence,
the businesses do not need to hold higher inventory.
TAX COMPUTATION
350000
300000
250000
200000
150000 Series1
100000
50000
0
ANALYSIS:
taxable was at Rs. 318860.85, hence, after the deduction of tax slabs it falls under, the
tax payable amount is derived at Rs. 7100 and which is less in this case.
ANALYSIS & INTERPRETATION OF THE DATA :
KEY POINTS TO CONSIDER (FOR TAX AUDIT) :
 Cash Payments should not be more than 20,000/-
 Depreciation on the Assets are ascertained on the basis of their date of purchase
100% depreciation for 1-6 months old used assets
More than 6 months – 50% of rate of depreciation is charged
 Unsecured Loans for more than 20,000/- are not allowed to paid in Cash.
 Ensuring that the proprietor has issued TDS certificates to the contractors, to the
salaried workers and professional heads etc. for the job rendered by them to the
company.
 Timely deposit of the quarterly Income tax returns
 TDS is deducted, deposited and filing of the TDS returns with the Income Tax
department.
 Also, the Income tax returns are timely sent to the IT department.
 Matching the challans of the payment of VAT, purchase bills.

 Yearly analysis of the GPR, NPR, Stock-in-trade turnover ratios and ensuring there are
no abnormal losses incurred by the company.
 Checking and tallying the bills of expenditures, rent , purchases etc.
 Matching the Sales figures with the Sales tax returns and purchases figures from DVAT.
 Examining whether the stock-in-trade ratio is higher or smaller
 Analysis of the current debtors:
Ensuring they must be just 3 months old otherwise create provisions for bad debts for the
debtors who are more than 6 months old.
CHAPTER 6 :
FINDINGS & SUGGESTIONS
FINDINGS:
The findings drawn are as follows;
 Cash Payments are not more than 20,000/- and there is timely payment to the creditors
 Depreciation on the Assets are ascertained on the basis of their date of purchase
100% depreciation for 1-6 months old used assets
More than 6 months – 50% of rate of depreciation is charged
Mostly, the rate of depreciation used is at 18%.
 Unsecured Loans for more than 20,000/- are paid in Cash rather they are paid through
cheques and there is no bouncing of those cheques observed.
 The proprietor has issued TDS certificates to their contractors, to the salaried workers
and professional heads etc. for the job rendered by them to the company and also, they
have been issued the TDS certificates from the financial institutions.
 There has been timely deposit of the quarterly Income tax returns as well as of sales tax
returns which are tallied through the sales tax website.
 TDS has been deducted, deposited and filing of the TDS returns with the Income Tax
department.
 Also, the Income tax returns are timely sent to the IT department.
 The challans of the payment of VAT, purchase bills provided by the clients are matching
and hence, entered in the tally erp software.
 Yearly analysis of the GPR, NPR, Stock-in-trade turnover ratios and the business
ensured that there are no abnormal losses incurred by the company.
 Also, where there is higher stock-in-turnover ratio the firms have been advised to hold
the stocks and for the smaller ratios, it suggested that the businesses are having good
and the faster flow of the stock movement.
 The bills of expenditures, rent , purchases are checked and tallied etc.
 The Sales figures are in accordance with the Sales tax returns and purchases figures from
DVAT.
 Also, there has been no undue shortage or misappropriation of funds observed alongwith
the all the payments and incomes statements in accordance with the figures mentioned in
the financial statements.
 Many clients business was observed that they set-off their liabilities early and there was
little delay in the payments to the creditors and there has been less delay.
 Analysis of the current debtors: Ensuring they must be just 3 months old otherwise create
provisions for bad debts for the debtors who are more than 6 months old.
 The Relevant Tax Authority (RTA) employed tax audit towards achieving target
revenue.
 Tax audit reduces the problems of tax evasion, tax avoidance and other tax
irregularities.
 Tax audit aimed at ensuring the submission of accurate and current returns for proper
computation.
 Awareness on tax rules and regulation increase compliance and reduce non-compliance
tax payers.
 That one of the reason behind the tax audit is the suspicion over the returns submitted
by the tax payers.
 Tax payers do not usually co-operate with the tax audit personnel during the exercise.
 Tax audit improves the level of tax compliance by the tax payers.
 No effective sanctions over the non-compliance tax payers with the tax rules and
regulations.
 The personnel conducting the tax audit are skilful in the area of tax audit.
 The tax audit personnel are not adequate and equipped with necessary working
materials.
Suggestions:
After the completion of the study, according to my opinion, there still exists a
possibility that biased approach can be adopted by many CA ‘s performing the tax
audits for the companies. Though, ICAI has laid many stringent and strict rules and
regulations for maintaining the ethics always and there has been heavy emphasis by
them on the authorized audit performance to give their judgments based on the facts
which are there in front of them and to their best knowledge without having any undue
influence of the particular clients for whom they are performing the audit.
Also, the data provided to the CA’s are given by the companies is not ensured that
there is no falsification of the facts mentioned hence, they need to perform internal
audits and the various kinds of audits which are not statutory in nature along with those
which are such as company audit. So that, when the financial statements reaches the
CA is ensured to be true in all sense.
 The Relevant tax authority at all levels should improve the standard of tax audit
employed for effectiveness and efficiency.
 Tax audit should aim at reducing more problems of tax evasion, tax avoidance and
other tax irregularities for standardization.
 The scope of tax audit should be wider in such a way that will ensure proper
submission of accurate and current returns for proper computation.
 The RTA should provide a policy to the public on the awareness of the importance of
tax payment and the effect of non-tax payment, so that the level of compliance would
be high and non-compliance will be low or even none.
 The tax payers should have God fearing and submit the accurate returns of their
operation.
 RTA should also provide a policy that would allow the tax payers to co-operate during
the period of tax audit and at the same time the tax payers should do their best toward
cooperating with the tax audit personnel during the period of the exercise.
 RTA should also improve the standard of tax audit personnel so that they can highly
improve the level of tax compliance by the tax payers.
 There should be effective sanctions by RTA over the non-compliance tax payers with
the tax rules and regulation.
Hence, it is advisable that in spite of indulging in falsifications of the facts, companies
should ensure that they bring forth the right facts and not involved in tax evasion
activities also.
CHAPTER : 7
CONCLUSIONS
The primary goal of this project report was to identify the need and the requirement for
a company to conduct tax audits. It showed that unless and until the companies
conducts of their accounts how will the assessor be able to ensure that the figures and
the data mentioned in the financial statements by the companies are actual.
Audit of accounts in the corporate sector was always mandatory by virtue of the provisions
of The Companies Act, 1956. Realizing the importance of audit this requirement has been
extended to non-corporate assesses. Since by virtue of sec 44AB all assesses irrespective of
their nature, if they fulfill the criteria as laid out in the section have to get their accounts
audited.
The intention of bringing in this piece of legislation as observed by the Finance Minister
while presenting the Union Budget for 1984-85 is the compulsory audit is intended to
ensure proper maintenance of books of accounts and other records, in order to reflect the
true income of the tax payer and to facilitate the administration of tax laws by a proper
presentation of the accounts before the tax authorities. This would also save the time of the
Assessing Officers considerably in carrying out the verification.
The project study conducted helped in examining the areas which are of upmost
importance to be considered while preparation of the audit report. The in-depth analysis
of the particular client’s Financial statements helped in analyzing their growth,
performance and any abnormal losses occurrence.
The project also discussed about how chartered accountants firms conducts tax audit of
the client’s companies’ accounts which is statutory in nature and what are the various
types of advanced auditing which companies can incorporate so that their growth ,
performance is increased. Also, while gathering the information it was observed that
the clients of the DEVENDRA DAHIYA & COMPANY are loyal and there is high
customer satisfaction meaning that these companies comes to the DEVENDRA
DAHIYA & COMPANY since they offer best services thereby maintaining the ethics
of the advisory. Hence, This study could be concluded with the mentioning of there is a
liability for the assesse irrespective of their taxable income of Tax Audit.
BIBLIOGRAPHY
BOOKS:
 Kothari, C.R. (1997). Research methodology, 3rd edition, 1997, Vikas

Publishing House Pvt. Ltd, New Delhi
 Singhania, Dr. Vinod K. & Dr. Monica , Student’s guide to Income Tax,
48Th edition,2014,Taxmann publications pvt. Ltd., New Delhi
 Mundhra, Vikas, Advanced Tax Laws & Practice A.Y. 2015-16, 2015
edition, Lawpoint's CS Solutions, New Delhi
 Bansal, Surbhi, Advanced Auditing & Professional Ethics, 12th edition,
2015, Taxmann’s publications pvt. Ltd., New Delhi
 Prasath, G.Sekar & Saravana, Easy guide to advanced auditing for CA,
latest edition, 2015, Padhuka publications pvt. ltd., New Delhi
WEBLIOGRAPHY:
1. www.charteredclub.com
2.www.icai.org
3. www.incometaxindia.gov.in
4. ICAI GUIDANCE NOTES
5. www.taxguru.in
6. www.yourfinancebook.com
7. http://www.investopedia.com/terms/c/ca.asp
ANNEXURE
SAMPLE OF TAX AUDIT REPORT :
FORM NO.: 3 CB
FORM NO: 3CD

A Study On Taxation Auditing Services Provided by A Chartered Accountant Firm

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A SUMMER TRAINING PROJECT REPORT

SUBMITTED IN THE PARTIAL FULFILLMENT

Under The Guidance: Submitted By:

ROLL NO. : 51524288816

CHANDERPRABHU JAIN COLLEGE OF HIGHER STUDIES &

This to certify that I have completed the project titled “A STUDY ON

This is an original work and I have not submitted it earlier elsewhere.

I offer my sincere thankfulness and humble regards to CHANDERPRABHU

JAIN COLLEGE OF HIGHER STUDIES & SCHOOL OF LAW

I pay my sincere regards and gratitude to Prof. …………………………… my project

I take this opportunity to express my gratitude and offer my thanksgiving to our

I am also thankful to my family and friends for constantly motivating me to complete

CHAPTER 4 : DATA COLLECTION

CHAPTER IV: DATA COLLECTION

CHAPTER IV: DATA COLLECTION

The project that I worked upon is titled as “STUDY OF FINANCIAL STATEMENT

An accounting designation given to accounting professionals in many countries

 THE INSTITUTE OF CHARTERED ACCOUNTANTS OF INDIA (ICAI):

The Institute of Chartered Accountants of India (ICAI) is a statutory body established

Rules made by the Central Government

The Chartered Accountants Act & Regulations

 Approval of Trade/Firm Name

» Income Tax Services

» Societies and Trust Consultancy

» Sales Tax matters Consultancy

» Service tax matters Consultancy

 Design, implementation and review of accounting manual

 Auditing & Assurance Services

 Statutory audit ▪ Company Audit

 Societies and Trust Audit

 Service Tax Matters Consultancy

“Audit of accounts in the corporate sector was always mandatory by virtue of

-PROF. PRAKASH PEGADWALA,

- MU’AZU SAIDU BADARA

ABUBAKAR TATARI ALI POLYTECHNIC BAUCHI

(Research Journal of Finance and Accounting)

“STUDY OF FINANCIAL STATEMENT & AUDITING SERVICES

Auditing refers to a systematic and independent examination of books, accounts,

As a result of an audit, stakeholders may effectively evaluate and improve the

ii. TAX AUDIT:

Section Business Covered

44AD Eligible Business

44AE Transport Business

44B Shipping Business of a non-resident

44BB Providing service or facilities in

744BBA Operation of aircraft by non-resident

44BBB Civil construction etc. in certain turnkey

Compulsory Tax Audit v/s 44AB:

Special Features of Audit:

RESEARCH OBJECTIVES OF THE STUDY:

RESEARCH METHODOLOGY ADOPTED :

o Primary Sources: Client’s Companies Accounts Office

o The study was limited to few departments in the organizations.

M/s S.A.RUBBER (INDIA)

TRADING AND PROFIT &LOSS ACCCOUNT

BALANCE SHEET AS ON 31.03.2017

Rounded off 3898380.00

Total Tax &

Tax Paid TDS 177739

(*1)-(NORMAL RATE -300000) X 0.1

(*2) -(TOTAL TAX DUE + INTEREST)

GROSS PROFIT RATIO = Gross Profit x 100

= (2060640/ 8192388 ) x 100 = 25.15%