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Book Description
"They know enough who know how to learn/' says Henry Brooks Adams in 'The Education of Henry Adams'. This is cent percent true in the ever-changing world where knowledge itself is power. In this milieu, the 3rd revised edition of this classic publication "Auditors' Practice Manual" [Gita for Chartered Accountants] aims to help all Chartered Accountants in the country in their endeavour to know how to learn.
It is a complete guide, to CAs, which incorporates a comprehensive treatment of the entire gamut of auditing practices in India, containing hundreds of useful ready-to-refer audit checklists, certificates, specimen reports, procedures, and other guidelines.
What, how, where, why, when, which and so on, as regards auditing, have been aptly detailed here for carrying out an effective verification and audit. This audit literature of rare breed interestingly provides at one place all the procedural formalities, reporting requirements, compliances and checklists under a broad spectrum, not leaving any important topic untouched.
This book, which is classic and unique, has in-built pack of action checklists and procedural guidelines, which will help the auditing community all over India to ensure that no important aspect is missed in the process of verification, audit and other compliance. This guidebook on audit not only deals with audit checklists and related procedures, but also contains hundreds of specimen certificates, reports, ready-to refer- charts, self-explanatory tables etc., as may be applicable under various laws.
CAs, nowadays are to discharge their audit functions in various capacities such as statutory auditors, tax auditors, internal auditors, concurrent auditors and certifying authorities for different purposes under various Acts, Rules and Regulations. Further, the various types of audit and certification, which are required under different breeds of law like the corporate laws, direct tax laws, forex laws, indirect tax laws and other laws, do call for different procedural requirements and approaches by the auditors. Keeping all such 'task-specific' reporting and certifying requirements in mind, this classic manual of auditors has been aptly brought out.
Interestingly, this reader-friendly book on audit has been presented in the style of useful checklists, with clear action points and related guidelines, which shall all serve a real guide for all CAs in practice. This book, with its valuable pack of specimen certificates, reports, forms, applications, petitions and how-to checklists, will help the auditors as a handy tool while discharging their functions as effective professional accountants.
This thoroughly revised edition on audit [updated upto June, 2008] shall also prove very useful for all corporate entities, business managers and other officials who are mainly involved in the task of conduct of various audits and certifications.
Frankly speaking, this audit guide is a unique A to Z procedural guide on auditing in India and the numerous audit tips, how to checklists, action points, ready referencer, specimen reports, certificates and easy to read tables, given therein shall all serve the purpose of a real guide for all the practising CAs, audit professionals and corporate managers all over India.
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Contents
Volume 1
Chapter
Part I - Basic Audit Procedures
1.    Preliminaries Before Commencement of Audit
2.    Communication with Previous Auditor - When Mandatory?
3.    Planning for Audit
4.    Basic Audit Procedures
5.    Audit Working Papers
6.    How to Conduct Test-Checking?
7.    Surprise Check - A Desirable Tool
8.    Vouching of Receipts
9.    Vouching of Payments
10.  Vouching of Trading Transactions
11.  Vouching of Journal Entries
12.  How to Conduct a High Quality Effective Audit? -A Structured Audit Methodology
13.  Evaluation of Internal Control
14.  Audit of Cash and Bank Balances
15.  Audit of Revenue
16.  How to Expose Non-compliance of Law in Auditee-concern? - Some Tips
17.  Remuneration of Auditor - Legal Aspects
18.  Preservation of Records Relating to Audit
Part 2 - Audit of Companies
19.  Notice of Acceptance by Auditor
20.  Commencement of Company Audit - Preliminaries
21.  The Companies Act, 1956-Important Provisions At a Glance
22.  Audit of Profit & Loss Account of Companies
23.  Audit of Liabilities
24.  Audit of Fixed Assets & Investments
25.  Audit of Current Assets, Loans & Advances
26.  Audit of Other Assets
27.  Audit of Miscellaneous Expenditure
28.  Audit of Capital and Reserve
29.  Branch Audit of Companies
30.  CARO, 2003 & Auditors' Duties
31.  Companies (Auditor's Report) Order, 2003
32.  Companies (Auditor's Report) (Amendment) Order, 2004
33.  Special Audit under Section 233A
34.  Auditors' Certificate in Statutory Report
35.  Political Contributions and Auditors' Duties
36.  Disclosures under Section 212 of the Companies Act, 1956
37.  Audit Committees Under Company Law
38.  Cash Flow Statement & Auditors' Certificate
39.  Cost Audit of Companies
40.  Audit of Liquidator's Accounts
41.  Company Audit Reports
42.  Statutory Auditors' Report on Disqualification of Directors
43.  Auditor's Certificate on Return of Deposits
44.  Specimen Consent Letter from Auditors to the Company for Inclusion of Their Report in Prospectus
45.  Certificate of Document for Registration of Charges
46.  Audit of Producer Companies
47.  Audit Certificate of Nidhi Companies/Mutual Benefit Societies
48.  Corporate Governance - Compliance Certificate under Clause 49
49.  Auditors' Certificate in case of Buy-Back of Securities by Unlisted Companies
50.  Audit of Abridged Financial Statements
51.  Who are Entitled to Receive Auditors' Report?
52.  Auditor's Certificate U/s 484 (1)(b)
53.  List of Some Authorities Relevant to Limited Companies / Auditors
54.  Financial Statements under The Companies Act, 1956
55.  Management Representation Letter Regarding Related Parties - A Specimen
56.  E-Forms and Fees Under MCA-21
57.  DCA Norms for Discharge of Functions
58.  Implementation of a Comprehensive E-governance System under Companies (Amendment) Act, 2006
Part 3 - Regulatory Pronouncements0
59.  ICAI Pronouncements - Some Basic Facts
60.  International Accounting Standards and Indian Accounting Standards - A Comparative Study
61.  How to Comply with Accounting Standards? - A Checklist
62.  Non-corporate Entities (NCEs) & Accounting Standards
63.  Applicability of Accounting Standards to Small and Medium-Sized Enterprises
64.  Auditing & Assurance Standards in India - An Overview
65.  Classification of the Auditing and Assurance Standards
66.  Renumbering of the Auditing and Assurance Standards
67.  Guidance Notes for Auditors At a Glance
68.  Statements on Auditing and Accounting - Relevant for Audit
69.  Some Latest Information Useful for Audit Professionals
Part 4 - Management Audit & Internal Audit
70.  How to Conduct Management Audit?
71.  Internal Audit - Basic Concepts
72.  Internal Audit of Cash & Bank Balances
73.  Internal Audit of Capital
74.  Internal Audit of Debentures and Long-term Loans
75.  Internal Audit of Creditors, Accruals, Provisions and Contingent Liabilities
76.  Internal Audit of Purchases and Other Expenditure
77.  Internal Audit of Sales and other Income
78.  Internal Audit of Fixed Assets
79.  Internal Audit of Investments
80.  Internal Audit of Debtors, Prepayments, Accrued Income
81.  Internal Audit of Stock and Work-in-Progress
82.  Physical Verification of Stock
83.  Internal Audit of Wages and Salaries
84.  Audit of Compliance with Statutory Laws, Rules and Regulations
85.  How to Evaluate Internal Audit?
Part 5 - Bank Audity
86.  Accounting Systems in Banks
87.  Audit of Branches - A Checklist
88.  Audit Procedures in Automated Branches
89.  Branch Auditors' Report - Notable Aspects
90.  Jilani Committee Recommendations - Branch Level (Relating to Internal Control and
       Inspection/Audit System in Banks Which are to be Compulsorily Implemented by
       Banks)
91.  Ghosh Committee Recommendations - Branch Level (Relating to Frauds/
       Malpractices in Banks - Action Taken in Respect of)
92.  Reporting Irregularities in Case of Large Advances [Bank Branches] - A Checklist
93.  Documents (Verification) for LFAR Requirements (H.O. Level)
94.  How to Conduct Long Form Audit of Banks? - Bank Branches (Revised)
95.  How to Conduct Long Form Audit of Banks? - At H.O Level - A Checklist (Revised)
96.  Tax Audit in Banks (Clausewise Analysis)
97.  Tax Audit Report of Banks [Revised]
98.  Different Sections Referred to in Form 3CD - At a Glance
99.  Statutory Audit at Head Office - A Checklist
100. Form of Balance Sheet and Profit & Loss Account of Banking Companies
101. Audit of Co-operative Banks
102. Concurrent Audit System in Commercial Banks - Revision of RBI's Guidelines
103. Concurrent Audit of Banks - A Checklist
104. Concurrent Audit of Banks [A Periodic Checklist]
105. Concurrent Audit - Specimen Report
106. KYC Norms vis-a-vis Concurrent Audit
107. Internal Audit of Branches
108. Internal Audit of Bank's Head Off ice/Central Office
109. Specimen Internal Audit Report [Bank Branches]
110. Risk-based Internal Audit of Banks
111. Stock Audit/ Receivables Audit of Banks
112. Stock Audit Report - Specimen Formats
113. Revenue Audit of Bank's Branch
114. Management Audit of Banks
115. Standardised Checklist for Conducting Computer Audit
116. Half-yearly Review of Accounts of Public Sector Banks
117. Accounting Standards (AS) & Banking Companies - RBI Guidelines
118. Deficiencies Found in Sanctioning of Loans and Monitoring of Borrowal
       Accounts by Banks - RBI Guidelines
119. Important RBI Circulars Relevant for Bank Audit


Volume 2
Part 6 - Specialised Audits
120. Audit of Hospitals
121. Audit of Industrial Companies
122. Audit of Hotels
123. Audit of Theatres and Cinemas
124. Audit of Clubs
125. Audit of Executor's Accounts
126. Audit of Shipping Companies
127. Audit of Schools and Colleges
128. Audit of Partnership Firms
129. Audit of Sole-Proprietary Concerns
130. Audit of General Insurance Companies (Divisional Level)
131. Audit of General Insurance Companies (Head Office Level)
132. Audit Report of Insurance Companies [The Irda Regulations & Other Guidelines]
133. Audit of Charitable Entities under FCRA
134. Audit of Bank Borrowers [Non-Corporate Entities]
135. ABC Audit Certificate
136. Audit of Non-Banking Financial Companies [NBFCs]
137. Limited Review of Accounts
138. Audit of Members of Stock Exchanges
139. Audit of Co-operative Societies
140. Revenue Audit in SFE Institutions [A Checklist]
141. Expeneditre Audit in Self-financing Educational Institutions [A Checklist]
142. Audit of Airline Catering Divisions
143. Audit of Computer Centres
144. Energy Audit - How to Approach?
145. Environmental Audit
146. Accountant's Report on Profit/Financial Forecasts
147. How to undertake Accounting and Other Engagements?
148. Audit of Portfolio Managers
Part 7 - Certificates/ Audit Reports under Income Tax Act
149. Audit Report/Report of Accountant, etc., Required under Income-tax Law - At a Glance
150. Who Can Conduct Audit under the Income Tax Act, 1961?
151. Maintenance of Accounts under the Income Tax Act
152. Audit of Trusts, Educational and Medical Institutions
153. Audit of Newly Established Undertakings in Free Trade Zone, etc.
154. Audit of Newly Established Units in Special Economic Zones
155. Audit of 100% Export-Oriented Unit [EOU]
156. Audit of Exporters [Hand Made Wooden Articles]
157. Audit of Charitable or Religious Trusts or Institutions
158. Report of Accountant in Respect of Additional Depreciation
159. Audit in Respect of Investment Deposit Account
160. Audit of Tea/Coffee/Rubber Manufacturer
161. Audit in Respect of Site Restoration Account
162. Certificate of Expenditure on Eligible Projects/ Schemes
163. Audit in Respect of Amortization of Preliminary Expenses
164. Audit in Respect of Expenditure on Prospecting, etc., for Certain Minerals
165. Accountant's Report in Respect of Y2K Expenditure
166. Tax Audit under Section 44AB
167. Form of Tax Audit Particulars to be Furnished by Members/Firrr
168. Form No. 3CD - Furnishing Details u/s 44AB [with Action Points]
169. Certification of Fringe Benefit Value - Specified Format
170. Tax Audit Reports under Section 44AB
171. Recent Amendment in Form No. 3CD - [Vide Notification No. 208/2006, dated 10.08.2006]
172. Duties of Chartered Accountant vis-a-vis Tax Audit
173. Financial Statements for Non-corporate Trading Entities
174. Financial Statements for Non-corporate Manu-facturing Entitie
175. Falsification of Books of Account & Auditors
176. Depreciation for Assessment Year 2006-07 and Onwards
177. Audit Report to be filed by A Non-corporate Non-resident or a Foreign
        Company on Receipt of Income by way of Royalty or Fees for Technical Services
178. Report of Accountant on Capital Gains in Case of Slump Sale
179. Details of Accounts for Relief to Victims of Gujarat Earthquake
180. Daily Case Register to be Maintained by Medical Practitioners
181. Verification by Chartered Accountant Regarding Achievement of the Prescribed
        Level of Production and Continuance of Such Level of Production in Subsequent Years
182. Audit of Infrastructure Development Undertakings
183. CA Certificate on Housing or other Activities, which are Integral part of a
        Highway Project
184. Audit of Under-takings Engaged in Development of Special Economic Zone [SEZ]
185. Audit of Industrial Undertakings other than Infrastructure Development Undertakings
186. Audit of Convention Centres
187. Audit of Multiplex Theatres
188. Audit of Hospitals in Rural Areas
189. Audit of Undertakings in North-Eastern States
190. Audit Report in Respect of Employment of New Workmen
191. Audit of Offshore Banking Unit/ International Financial Services Centre
192. Report of Accountant in Respect of International Transactions
193. Report on Book Profits of Companies
194. Audit under Tonnage Tax Scheme [TTS]
195. Verification by Chartered Accountant in Respect of Statement to be Furnished
        With Respect to Income Distributed By the Unit Trust of India
196. Verification by Chartered Accountant in Respect of Statement to be Furnished
        With Respect to Income Distributed by a Mutual Fund
197. Verification by Chartered Accountant in Respect of Statement of Income
        Distributed by Venture Capital Company or a Venture Capital Fund to be
        Furnished Under Section 115U.
198. Audit under Directions from Assessing Officer
199. Accounting Standards Notified under Income Tax Law
200. Electronic Furnishing of Return of Income Scheme, 2007
201. New Return Forms for Assessment Year 2007-08 - Matters Connected Thereto
202. List of Important Law/Tax Journals (With Abbreviations)
Part 8 - Certificates /Audit Reports under Various Laws/Regulations
203. CA Certificate in Duty Free Import of R & D Equipment for Pharmaceutical and
        bio- technology sectors
204. CA Certificate In duty Free Import of Goods in Agro Chemicals sectors
205. CA Certificate in DTA sales by EOU/SEZ/EHTP/STP/BTP units
206. CA Certificate in data sheet for advance licence applications
207. CA Certificate in claims of Duty Drawback on all Industry Rates/ fixation of
        drawback rates/refund of terminal excise duty
208.. Export Performance Certificate by Chartered Accountants in respect of
        advance licence and EPCG
209. CA Certificate in Cases where Standard input Output Norms are fixed and
        application is preferred under paragraph 4.4.2 and Handbook of Procedures (Vol.1)
210. CA certificate in offsetting of export proceeds
211. CA Certificate in Annual Progress Report (APR) Annexed to legal agreement for
        EOU/SEZ units
212. CA Certificate in Annual Performance Report of Indian joint Ventures/WOSs abroad
213.. CA certificate in application for remittance of legacies, bequests or inheritances
        to beneficiaries resident outside India
214. Auditor's Certificate Regarding Non-Resident holding in Oversea Companies
        held Directly by Non Resident Indians (NRIs)
215. Auditor's Certificate Regarding Non-Resident Holding in Overseas Companies
        held Indirectly by Non Resident Indians (NRIs)
216. CA Certificate in "Form TS 1" under Fern (Transfer or issue if Security by a
        Person Resident Outside India) Regulations, 2000
217. CA Certificate for Payment of Technical Know-how fee under
        Foreign Technical Collaboration
218. CA certificate in "Form REC" under Foreign Exchange Regulations
219. CA certificate in case of Direct Investment in Joint venture (JV)/ Wholly
        Owned Subsidiary (WOS) abroad under Automatic Route
220. Auditor's Report on Overseas Acquisition made under the ADR/ GDR Stock
        Swap Scheme
221. CA certificate in "Form ODI" under Fern (Transfer or issue of any
        Foreign Security) Regulations, 2000
222. Certificate of Foreign Contribution received by Non-Political Association under
        Foreign Contribution (Regulation) Act, 1976
223. CA Certificate under Payment of Bonus Act, 1965
224.. CA certificate under incentive scheme for acquiring ISO-Certification/
        ISO-14001 Certification.
225. CA certificate in Visa Application
226 CA certificate in Annual Statement under the Registration of
        Newspapers (Central) Rules, 1956.
227. CA Certificate & Consumption of Indigenous/Imported Newsprint
228. CA Certificate as Proof of Proprietary Firm
229. CA Certificate as Proof of Partnership firm
230. CA certificate under Market Development Assistance Scheme
        (SSI-MDA) for Financial Assistance to SSI units (for Registration for bar Coding)
231. CA Certificate in Application for Investment Subsidy
232. Review Report under Clause 41 of the Listing Agreement
233. Certification of financial statements of multinational companies having presence in India
234. CA Certificate in MP's Development Fund
235. CA Certificate in case of Remittance to a Non-Resident
236. CA Certificate in Reimbursement of Central Sales tax (CST) on
        Supplies made to EOUs, units in EHTPs and STPs
Part 9 - Reports/Certificates/Procedures under the Chartered Accountants Act, 1949 & Rules thereunder
237. How to Register CA firms?
238. How to maintain a Branch Office by a CA firm?
239. How to Deal with Change in Constitution of a CA firm?
240. Can the Goodwill of a CA Firm be sold?
241. How to avail the Advisory Service of the Expert Advisory committee?
242. How to get Certificate of Good Standing from ICAI?
243. Who are eligible to Train Articled Clerks?
244. How to change name of Member in Institute's Records?
245. How to Maintain Professional Address?
246. Main Occupation of Chartered Accountants- [Some Clarifications]
247. Can Practicing Chartered Accountants Engage in other Busi Occupation?
248. COP & Chartered Accountants- FAQs
249. Can Chartered Accountants Post their Particulars at Website?
250. Can Chartered Accountants give Advice or Consultation through the
        Websites of Non-Chartered Accountants' firms?
251. How many Audit Assignments can one CA Accept? [A clarification]
252. Auditors' Indebtedness to the Auditee-concern - [A Clarification]
253. Can a Company Auditor accept other Work /Assignment in the same Undertaking?
254. Duties of auditors in case of Unjustified Removal of earlier auditors.
255. Applications/Forms/Reports under CA Regulations
256. Can a CA obtain Duplicate Certificate?
257. Can Chartered Accountants act as Direct Selling Agents (DSA)?
258. Peer review of Practice Units (PUs)
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Aubout the Author
Shri. Vel Subramaniam Vadivel, FCA, ACS is a Chennai based Chartered Accountant. His fields of special interest include all facets of corporate legislations especially the Corporate Laws and Tax Laws. He is an author and authority in the field of direct taxation and auditing.
Being a CA/CS all India rankholder, he has been closely associated with the country's all the three premiere professional institutions, viz., the Institute of Chartered Accountants of India, the Institute of Company Secretaries of India, the Institute of Cost and Works Accountants of India and various other institutes like the Indian Institute of Bankers in different capacities such as examiner, lecturer, panel speaker etc.
He has rich experience in various types of audits both in the public sector and private sector all over the country. He has copious writings to his credit. He has so far authored hundreds of articles, which have appeared in many leading professional journals and periodicals both in India and abroad. He has also authored 12 books on various topics of direct taxation and auditing. He has also served as consultant for some of the leading industrial groups in India on how to comply with audit and other legal compliance.
He is not only an author and authority in the Corporate Law and Auditing but also a notable personality in many other fields of socio-economic and public activities. He has also served as the General Secretary of M/s New Generation Consumers Protection Association, a Chennai based NGO, working for the welfare of consumers all over the country.
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