Audit

ADVANCED AUDITING
1. INTRODUCTION
What is an 'Audit'
An audit is an objective examination and evaluation of the financial statements of an
organization to make sure that the records are a fair and accurate representation of the
transactions they claim to represent. It can be done internally by employees of the
organization, or externally by an outside firm.
The IRS can perform audits to verify the accuracy of a taxpayers returns or other
transactions. When an audit is being performed by the IRS, it usually carries a negative
connotation and is seen as evidence of some type of wrongdoing by the taxpayer.
Audits performed by outside parties on private companies can be extremely helpful in
removing any bias when it comes to the state of a company's financials. Audits look for what
can be called a "material error" in statements on any specific object. They help
provide stakeholders with a sense of accuracy when regarding the state of the subject being
audited and can help enable them to make better, more informed decisions regarding the
subject being audited. When audits are performed by third parties, the opinion on whatever is
being audited (a business books, an organization as a whole or a system) can be candid and
honest without it effecting daily work relationships.
Most all companies receive an audit once a year, while even larger companies can receive
audits monthly. For some companies, audits are a legal requirement due to the compelling
incentives to intentionally misstate financial information in an attempt to commit fraud. For
some publicly traded companies, auditors are used as a resource to evaluate the effectiveness
of internal controls on financial reports.
MCOM PART-II (ACCOUNTANCY)
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ADVANCED AUDITING
2. TYPES OF AUDITS AND REVIEWS

The Audit Process
In general, a typical audit includes the following sequential steps:
Scheduling an opening conference to discuss the audit objectives, timing, and report
format and distribution.
Assessing the soundness of the internal controls or business systems and operations.
Testing the internal controls to ensure proper operation.
Discussing with management all preliminary observations.
Discussing with management the draft audit report and their responses, if available,
prior to release of the final audit report.
Following up on critical issues rose in audit reports to determine if they have been
successfully resolved.
Internal Controls Educational Seminar
Any department or organization that would like a session on Internal Controls in the
University Environment should contact the Director of Internal Auditing Services at Ext. 54818 to schedule it. The seminars are typically 1-2 hours in length and include a 20-minute
video on internal controls at colleges and universities. The presentation includes time for
questions and answers and can be tailored to address a department's specific needs or
requests.
AUDITS
Types of Audits and Reviews:
1.
Financial Audits or Reviews
2.
Operational Audits
3.
Department Reviews
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ADVANCED AUDITING
4.
Information Systems Audits
5.
Integrated Audits
6.
Investigative Audits or Reviews
7.
Follow-up Audits
I.
Financial audit
A historically oriented, independent evaluation performed for the purpose of attesting to

the fairness, accuracy, and reliability of financial data. CSULB's external auditors, KPMG,
perform this type of review. CSULB's Director of Financial Reporting coordinates the work
of these auditors on our campus.
II.
Operational Audit
A future-oriented, systematic, and independent evaluation of organizational activities.

Financial data may be used, but the primary sources of evidence are the operational policies
and achievements related to organizational objectives. Internal controls and efficiencies may
be evaluated during this type of review.
III.
Department Review
A current period analysis of administrative functions, to evaluate the adequacy of
controls, safeguarding of assets, efficient use of resources, compliance with related laws,
regulations and University policy and integrity of financial information.
IV.
Information Systems (IS) Audit
There are three basic kinds of IS Audits that may be performed:

1. General Controls Review
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ADVANCED AUDITING
A review of the controls which govern the development, operation, maintenance, and
security of application systems in a particular environment. This type of audit might
involve reviewing a data centre, an operating system, a security software tool, or
processes and procedures (such as the procedure for controlling production program
changes), etc.
2. Application Controls Review
A review of controls for a specific application system. This would involve an
examination of the controls over the input, processing, and output of system data. Data
communications issues, program and data security, system change control, and data
quality issues are also considered.
3. System Development Review

A review of the development of a new application system. This involves an evaluation
of the development process as well as the product. Consideration is also given to the
general controls over a new application, particularly if a new operating environment or
technical platform will be used.
V.
Integrated Audit
This is a combination of an operational audit, department review, and IS audit
application controls review. This type of review allows for a very comprehensive examination
of a functional operation within the University.
VI.
Investigative Audit
This is an audit that takes place as a result of a report of unusual or suspicious activity
on the part of an individual or a department. It is usually focused on specific aspects of the
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ADVANCED AUDITING
work of a department or individual. All members of the campus community are invited to
report suspicions of improper activity to the Director of Internal Auditing Services on a
confidential basis. Her direct number is 562-985-4818.
VII.
Follow-up Audit
These are audits conducted approximately six months after an internal or external
audit report has been issued. They are designed to evaluate corrective action that has been
taken on the audit issues reported in the original report. When these follow-up audits are done
on external auditors' reports, the results of the follow-up may be reported to those external
auditors.
3. TYPES OF AUDITORS
When it comes to external auditing, there are two different categories of auditors. First,
there is an external or statutory auditor who works independently to evaluate financial
reporting, and then there are external cost auditors who evaluate cost statements and sheets to
see if theyre free of misstatements or fraud. Both of these types of auditors follow a set of
standards different from that of the company or organization hiring them to do the work.
Internal auditors, as the name implies, are employed by the company or organization for
whom they are performing the audit. To the best of their ability, internal auditors provide
information to the board, managers, and other stakeholders on the accuracy of their books and
the efficacy of their internal systems.
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ADVANCED AUDITING
Consultant auditors, while not working internally, use the standards of the company they are
auditing as opposed to a separate set of standards. These types of auditors are used when an
organization doesnt have the resources to audit certain parts of their own operations.
Oversight, Rules and Regulation

In the United States as in many other countries, an audit has to meet a general set of
accepted standards as established by their respective governing bodies.
Standards for external audits, called the Generally Accepted Auditing Standards (GAAS) are
set out by the American Institute of Certified Public Accountants. A separate set of
International standards, called the International Standards on Auditing were set up by the
International Auditing and Assurance Board.
Rules for audits of public companies are made by the PCAOB, the Public Company
Accounting Oversight Board established in 2002.
3. INTERNAL AUDIT
An internal audit is the examination, monitoring and analysis of activities related to a
company's operations, including its business structure, employee behaviour and information
systems. Internal audit regulations, such as the Sarbanes-Oxley Act of 2002, have increased
corporate requirements for performing internal audits. Audits are important components of a
company's risk management as they help to identify issues before they become substantial
problems, such as attempts to steal intellectual property.
A daily, weekly, monthly or annual internal audit assesses the effectiveness of a
companys internal control system and helps uncover evidence of fraud, waste or abuse.
Some departments may be audited more frequently than others. For example, a
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ADVANCED AUDITING
manufacturing process may need daily audits for quality control purposes, while the human
resources department may need an annual audit of records and processes.
Scheduling audits on a calendar helps ensure they are performed consistently. Departments
should be given notice so they can have the required documentation and materials available
for the auditor. A surprise audit may be conducted if suspicion of unethical or illegal activity
exists.
Internal Audit Procedure

An internal audit begins by an auditor assessing current processes and procedures. The
auditor then analyses and compares the results to internal control objectives. He
determines whether the results comply with internal policies and procedures as well as
state and federal laws. Finally, the auditor compiles and presents an audit report to the
business owner.
Assessment Techniques
Assessment techniques ensure an internal auditor completely understands internal control
procedures and determines whether employees comply with internal control directives.
An auditor avoids disrupting the daily workflow by beginning with indirect assessment
techniques. For example, he may review flowcharts, manuals, departmental control
policies or other existing documentation, or he may trace specific audit trails from start to
finish. He may conduct one-on-one interviews and process observations with staff if
document reviews or audit trails do not fully answer all of his questions.
Analysis Techniques
Substantive procedures such as transaction matching, physical inventory count, audit trail
calculations and calculating already-reconciled financial statements help determine
whether work products contain data entry errors or whether financial statements contain
misstatements. Analysis techniques may test random data or target specific data if an
auditor believes an internal control process needs work.
Reporting Procedures
Internal audit reporting always includes a formal report and may include a preliminary or
memo-style interim report. An interim report typically includes sensitive or significant
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ADVANCED AUDITING
results the auditor feels are pertinent for immediate sharing with the business owner. The
final report is more formal than the interim report. The final report includes a summary of
the procedures and techniques used for completing the audit, a description of audit
findings and suggestions for improvements of internal controls and control procedures.
Audit Risk
Audit risk is the risk that the financial statements are materially incorrect, even though the
audit opinion states that the financial reports are free of any material misstatements. The
two components of audit risk are the risk of material misstatement and detection risk.
Because creditors, investors and other stakeholders rely on the financial statements, audit
risk may carry legal liability for a CPA firm performing audit work.
An auditor provides a written opinion as to whether the financial statements are free of
material misstatement. An audit requires a CPA firm to make inquiries and perform test
work on the financial statements. Auditing firms carry malpractice insurance to manage
audit risk and the potential legal liability.
Factoring In CPA Firms

Large public companies typically engage one of the Big Four accounting firms
PricewaterhouseCoopers, KPMG, Ernst & Young or Deloitte Touche Tohmatsu to
perform an audit. Many companies hire staff to perform internal audits, and external
audit firms may rely on some of the internal work performed. The Big Four was
previously the Big Five, but Arthur Andersen lost the ability to perform audit work
after being indicted on counts of obstruction of justice for its role in
the Enron scandal. According to a 2008 Government Accountability Office (GAO)
report, the Big Four firms audit 98% of U.S. companies with annual revenues over $1
billion. Smaller companies are more likely to engage a mid-range firm, such as Grant
Thornton.
The Differences Between Risks

Assume, for example, that a large sporting goods store needs an audit performed, and that
a CPA firm is assessing the risk of auditing the store's inventory. The risk of material
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ADVANCED AUDITING
misstatement is the risk that the financial reports are materially incorrect before the audit
is performed. In this case, the word "material" refers to a dollar amount that is large
enough to change the opinion of a financial statement reader, and the percentage or dollar
amount is subjective. If the sporting goods store's inventory balance of $1 million is
incorrect by $100,000, a stakeholder reading the financial statements may consider that a
material amount.
Detection risk is the risk that the auditors procedures do not detect a material
misstatement. For example, an auditor needs to perform a physical count of inventory and
compare the results to the accounting records, and this work is performed to prove the
existence of inventory. If the auditor's inventory count procedures are weak, the detection
risk is higher.
Audit Cycle
The accounting process that auditors employ in the review of a company's financial
information. The audit cycle includes the steps that an auditor will take to ensure that the
company's financial information is valid and accurate before releasing any financial
statements. The audit cycle can call for different tasks to be performed at different times for example, inventory can be counted in October and account receivables will be
determined in November.
The audit cycle typically involves several distinct steps and may include the identification
process, where the company meets with auditors to identify the accounting areas that need
to be reviewed; the audit methodology stage, where the auditors decide how the
information will be collected for review; the audit fieldwork stage, where the auditors test
and compare accounting samples; and the management review meeting stage, where the
findings are presented by the auditors to the company's management team.
4. CONTINUOUS AUDIT
An auditing process that examines accounting practices continuously throughout the year.
Continuous audits are usually technology-driven and designed to automate error checking
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ADVANCED AUDITING
and data verification in real time. A continuous audit driven system generates alarm
triggers that provide advance notice about anomalies and errors detected by the system.
Continuous auditing is not to be confused with computer-aided auditing. In computeraided auditing, the auditor is simply being assisted by technology, such as spreadsheets to
complete a periodic audit. Computer-aided auditing is driven solely by the auditor, while
continuous auditing is meant to run automatically at regular intervals.
5. STATUTORY AUDIT
A statutory audit is a legally required review of the accuracy of a company's or
governments financial records. The purpose of a statutory audit is the same as the purpose
of any other type of audit: to determine whether an organization is providing a fair and
accurate representation of its financial position by examining information such as bank
balances, bookkeeping records and financial transactions.
For example, a state law may require all municipalities to submit to an annual statutory
audit examining all accounts and financial transactions and to make the results of the
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ADVANCED AUDITING
audit available to the public. The purpose of such an audit is to hold the government
accountable for how it is spending taxpayers' money.
Many government agencies participate in regular audits. This helps ensure any funds
directed by the larger government entity, such as at the federal or state level, have been
used appropriately and according to any associate laws or requirements for their use.
Being subject to a statutory audit is not an inherent sign of wrongdoing. Instead, it is often
a formality designed to help prevent such activities, such as the misappropriation of
funds, by ensuring regular examination of various records by a third party. The same also
applies to other audits.
A. Understanding Statutes
The term statutory is used to denote the audit is required by statute. A statute is a law or
regulation enacted by the legislative branch of the organizations associated government.
Statutes can be enacted at multiple levels, including federal, state or other municipality. In
business, statute can also refer to any rule set forth by the organizations leadership team.
B. Understanding an Audit
An audit is an examination of records held by an organization, business, government
entity or individual. Generally, this involves the analysis of various financial records but
can also be applied to other areas. During a financial audit, an organizations records
regarding income or profit, investment returns, expenses and other items may all be
included as part of the audit process.
The purpose of a financial audit is often to determine if funds were handled properly and
that all required records and filings are accurate. At the beginning of an audit, the auditing
entity makes known what records will be required as part of the examination. The
information is gathered and supplied as requested, allowing the auditing entity to perform
its analysis. If inaccuracies are found, appropriate consequences may be levied.
C. Auditor's Report
The auditor's report is recorded in the annual report, the auditor's report
tests to see that a corporation's financial statements comply with GAAP. This
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ADVANCED AUDITING
is
sometimes
referred
to
as
the
clean
opinion
D. Independent Auditor
An independent auditor is a certified public accountant (CPA) or chartered accountant
(CA) who examines the financial records and business transactions of a company with
which he is not affiliated. An independent auditor is typically used to avoid conflicts of
interest and
to
ensure
the
integrity
of
performing
an audit.
Independent auditors are often used or even mandated to protect shareholders and
potential investors from the occasional fraudulent or unrepresentative financial claims
made by public companies, such as following the implosion of the dotcom bubble and the
passage of the Sarbanes-Oxley Act (SOX) in 2002.
An independent auditor either works for a public accounting firm or is self-employed.
The auditor examines financial statements and related data, analyses business operations
and processes, and provides recommendations on achieving greater efficiency. He
evaluates company assets for impairment and proper valuation and determines tax
liability, ensuring compliance with tax code and laws.
The auditor develops an opinion asserting the reliability and fairness of clients' financial
statements, then communicates the information to investors, creditors and government
organizations. In addition, he may perform other auditing, tax and consulting services for
individuals, corporations, non-profit organizations or government entities.
E. Auditing Procedures
An independent auditor asks questions of management and staff for a better
understanding of the business, its operations, financial reporting, internal control system,
and known fraud or error. He may perform analytical procedures on expected and
unexpected variances in account balances or transaction classes, then test documentation
supporting those variances. The auditor also observes the companys physical inventory
count and confirms accounts receivable (AR) and other third-party accounts.
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ADVANCED AUDITING
7. GOVERNMENT AUDIT
I.
II.
III.
Government audit means

The systematic and independent examination
Of financial, administrative and other operations of a public entity
For evaluating and verifying them.
Its objective is to ensure the accountability of the government entity in respect of public
revenue and expenditure.
Auditor presents a report containing audit findings along with recommendations for
future actions.
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ADVANCED AUDITING
IV.
In India, the function of government audit is performed by COMPTROLLER AND

AUDITOR GENERAL
7A. COMPTROLLER AND AUDITOR GENERAL

The Comptroller and Auditor General (CAG) of India is an authority, established by
the Constitution under Constitution of India/Part V - Chapter V/Sub-part 7B/Article 148,
who audits all receipts and expenditure of the Government of India and the state governments,
including those of bodies and authorities substantially financed by the government. The CAG
is also the external auditor of Government-owned corporations and conducts supplementary
audit of government companies, i.e. any non-banking/ non-insurance company in which
Union Government has an equity share of at least 51 per cent or subsidiary companies of
existing government companies. The reports of the CAG are taken into consideration by
the Public Accounts Committees (PACs) and Committees on Public Undertakings (COPUs),
which are special committees in the Parliament of India and the state legislatures. The CAG is
also the head of the Indian Audit and Accounts Department, the affairs of which are managed
by officers of Indian Audit and Accounts Service, and has over 58,000 employees across the
country.
The CAG is mentioned in the Constitution of India under Article 148 151.
The CAG is ranked 9th and enjoys the same status as a judge of Supreme Court of
India in Indian order of precedence. The current CAG of India is Shashi Kant Sharma, who
was appointed on 23 May 2013. He is the 12th CAG of India.
7B. APPOINTMENT
The Comptroller and Auditor-General of India is appointed by the India following a
recommendation by the Prime Minister. On appointment, he/she has to make an oath or
affirmation before the President of India.
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ADVANCED AUDITING
7C. DUTIES OF THE CAG

A. Compile and Submit Accounts
Comptroller and Auditor General of India shall compile the accounts relating to the annual receipts
and disbursements of the Union/State/Union Territory.
He shall submit those accounts to the President/Governor/Administrator respectively
He shall give to Union/State/Union Territory, such information as they may from time to time
require.
Audit of Receipts and Expenditure
He shall audit all receipts and expenditure of any body, which has been substantially financed from
the Consolidated Fund of India/State/Union Territory.
A body or authority shall be treated as substantially financed, if the amount of a grant or loan in one
year id greater than:
1. Rs. 25 lakhs, and
2. The amount of such grant or loan is not less than 75% of the total expenditure of body or authority,
Audit of Grants and Loans
This applies to any specific purpose loan or grant, given from the Consolidated Fund of
India/State/Union Territory, to anybody other than a foreign state or international organization.
Comptroller and Auditor General shall scrutinize the procedures by which the sanctioning authority
satisfies him as to the fulfilment of the conditions of giving such grants or loan
B. Audit of Receipts of Union or States

He shall audit all receipts payable in to the Consolidated Fund of India/ State/Union Territory.
He shall satisfy himself that rules and procedures are designed to secure any effective check on
assessment; collection and proper allocation of revenue are being duly observed.
C. Audit of Accounts of Stores and stock

The Comptroller and Auditor General shall have authority to audit and report on the accounts of stores
and stock kept in any office or department of the Union or of a State
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ADVANCED AUDITING
D. Audit of Accounts of Government Companies and Corporations

The duties and powers of the Comptroller and Auditor General in relation to the audit of the accounts
of government companies shall be performed and exercised by him in accordance with the provisions
of the Companies Act, 1956.
E. Maintenance of account
Article 150 of the constitution provides that the accounts of the Union and of the State shall be kept
in such from as the president may prescribe, on the advice of the Comptroller and Auditor General of
India.
F. To Audit and Report

CAG shall audit and report:
1. All expenditure from Consolidated Fund of India/State/Union Territory to ascertain:
(i) Whether the money disbursed were legally available for and applicable to service or purpose to
which they have been applied or charged, and
(ii) Whether the expenditure confirms to the authority which governs it.
2. All transactions of Union/State relating to the 'Contingency Funds and Public Accounts.
3. All Trading, Manufacturing, Profit and Loss account and balance sheet and other
subsidiary accounts kept in any department of the Union/State.
4-Powers of CAG
To inspect any office of accounts under the control of the union or a State Government
including officers responsible for the creation of the initial or subsidiary accounts.
To require that any accounts books papers and other documents which deal with or are
otherwise relevant to the transactions under audit, be sent to specified places.

To put such questions or make such observations as he may consider necessary to the person
in charge of the official and to call for such information as he may require for the preparations
of any account or report which is his duty to preparer.
5-Audit of Various Items
5A EXPENDITURE AUDIT
Audit of government expenditure is a major component of government audit. The auditor
examines whether the essential conditions for incurring government expenditure have been
satisfied or not.
This involves the examination of following: Audit of Rules and Orders
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ADVANCED AUDITING
Audit of Sanctions
Audit Against Provision of Funds
Audit of Propriety
Performance audit
5B AUDIT OF RULES AND ORDERS/ AUDIT OF REGULARITY

AND LEGALITY
Audit against rules and orders aims to ensure whether the expenditure is in accordance with:
Relevant provisions of the Constitution and of the laws and rules.
The rules, regulations issued by CAG.
The orders made by any higher authority. The function of the audit is to carry out an
examination to see that the various rule and regulations and orders issued by the executive
authorities are:
Consistent with the provisions of the constitution or any laws made there under.
Consistent with the essential requirements of audit and accounts as determined by C &
AG;
Note in conflict with the orders of, or rules made by, any higher authority and
5C. AUDIT OF SANCTIONSThe auditor has to examine

Whether the expenditure is properly covered by a sanction, either general or special.
Whether the authority sanctioning the expenditure is authorized to do so. Following are
some aspects that are important in an audit of sanctions:
The auditor should be fully conversant with the sanctioning powers of authorities.
The auditor examines whether all sanctions for the expenditure are noted and properly
attested in the prescribed audit register/other record.
In case of petty items of expenditure, the signature of the competent authority on a bill
can be regarded as a sanction.
Where sanctions and orders have been issued with the concurrence of the C & AG, no
further audit is required.
If the total expenditure on a scheme is likely to exceed the sanctioning limit of the original
sanctioning authority, an objection is raised.
5D. AUDIT AGAINST PROVISION OF FUNDS

To ascertain whether the expenditure incurred is for the purpose to which and
appropriation has been provided.
To ascertain that the amount of such expenditure does not exceed the appropriation made.
5E. PROPRIETY AUDIT

According to propriety audit, the auditors try to bring out the cases of improper, avoidable,
or in fructuous expenditure even though the expenditure has been incurred in conformity
with the existing rules and regulations.
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ADVANCED AUDITING
A transaction may satisfy all the requirements of regularity audit, but may still be highly
wasteful. e.g. A building may be constructed for installing a telephone exchange but may not
be used for the same purpose, resulting in infructuous expenditure.
Auditor should try to examine public financial morality by looking in to the wisdom,
faithfulness and economy of transactions.
No hard and fast rules can be laid down regarding the standards of financial propriety. Here,
the auditor should examine that: The authorities have made the expenditure with same degree of vigilance, as a person of
ordinary prudence would exercise in respect of his own money.
The expenditure is not prima facie more than the occasion demands.
No authority exercises its power of sanctioning expenditure to pass an order, which will
directly or indirectly accrue to its own advantage.
Public money is not utilized for the benefit of a particular person / section of the
community.
There should not be profiteering by the authority or anybody where the expenditure is in the
nature of compensating.
5F. PERFORMANCE AUDIT/FULL SCOPE AUDIT

Performance audit aims to ascertain that government programmes have achieved the
desired objectives at the lowest cost and given the intended benefits. Performance audit
includes efficiency, economy and effectiveness audit.
Efficiency audit: It looks in to whether
The various schemes/ projects are executed, and
Their operations are carried out in an economical efficient manner, and
They are yielding the expected results.
Economy audit: It looks in to whether:
The government have acquired the financial, human and physical resources in an
economical manner, and
The sanctioning authority and spending authority have observed economy.
Effectiveness audit: It is an appraisal of the performance of programmes, schemes,
projects with reference to the overall targeted objectives as well as efficiency of the means
adopted for the attainment of objectives.
Efficiency cum performance audit is an objective examination of the financial and
operational performance of an organization, authority or function and is oriented towards
identifying opportunities for greater economy and effectiveness. The procedure for
conducting performance audit covers: Preliminary study
Planning and execution audit
Identification of area
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ADVANCED AUDITING
Reporting
5G. AUDIT OF RECEIPTS
The government audit also covers receipts payable in to the consolidated Fund of India
and of each State / Union Territory with a legislative assemble. It aims to ensure that there
is no leakage of revenue which should legally come to the government. Such an audit
provides for checking
Whether all revenues or other debts due to government have been correctly assessed,
realized and credited to the government account by designated authorities.

Whether adequate regulations and procedures have been framed by the
department/agency concerned secure an effective check on assessment, collection and
proper allocation of cases.
Whether such regulation and procedures are actually being carried out;
Whether adequate checks are imposed to ensure prompt detection and investigation of
irregularities, double refunds, fraudulent and forged refund vouchers or other loss
of revenue through fraud or wilful omission or negligence to levy or collect taxes to issue
refunds.
Review of systems and procedures to see that the internal procedures adequately
secure correct and regular accounting of demands collection and refunds and pursuant
of dues up to the final settle and to suggest improvement.
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8. SECTION-617 GOVERNMENT COMPANIES

(1) Any company in which not less than 51% of the paid-up share capital is held by:
(i)
The CG, or
(ii)
One or more State Governments.
(iii)
Partly by CG and partly by one or more State Governments.
(2) A subsidiary of a Govt. Company shall also be treated as a Govt. Co.

[Note: Paid-up Capital = ESC + PSC]
9. AUDIT OF GOVERNMENT COMPANIES

U/S 619(2), the auditor of a Govt. Co. shall be appointed or re-appointed by the Central
Government on the advice of C&AG.
Ceiling limit applies.
The C&AG of India has power to direct the manner in which the accounts of Government
companies are to be audited and to issue instructions to the auditor in regard to any matter
relating to the performance of his duties and functions.
Remuneration of Auditor shall be fixed by the Shareholders in general meeting (GM).
Alternatively, the GM may determine the manner in which the remuneration shall be fixed.
Powers of CAG:
To direct the manner in which the accounts shall be audited.
To give instructions to the auditor regarding conductConduct
of the audit,
of and
To appoint a person to conduct a Supplementary
or Test Audit.
Supplementary
of test audit
Audit Report
The auditor of Government Company shall submit a copy of his audit report to the
C&AG who shall have the right to comment upon or supplement the audit report in a
manner he thinks fit.
Any such comments or supplement shall be placed before the AGM of the company at the
same time and in the same manner as the audit report.
However, while preparing the Boards Report, the Board is not required to give any
information or explanation in respect of comments or supplement made by C&AG,
since there is no requirement u/s217 or any other provision of the Act.
Note: The First Auditor and Branch Auditor of a Govt. company shall also be appointed
by C&AG. The provisions of Section-233B (Cost Audit) shall also apply to Govt.
Companies.
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9.1 SECTION-619A ANNUAL REPORT ON GOVERNMENT

COMPANIES
The CG, where it is a member of a Govt. Co. shall cause an annual report on the working and
affairs of that company to be prepared within 3 months of its AGM whereas, the audit report
is placed u/s 619(5).
As soon as this annual report is prepared the Central Government shall also cause it to be laid
before both Houses of Parliament together with the copy of the audit report and comments on,
or supplement to the audit report made by the C&AG.
Where, in addition to CG, any State Government is also member of the Govt. Co., that State
Government shall cause a copy of the annual report (prepared as aforementioned) to be placed
before the House or both Houses of the State Legislature, together with a copy of the audit
report and the comments thereon or supplement thereto.
The provisions of Section-619A shall also apply to a Govt. Co. in liquidation.
9.2 SECTION-619B APPLICABILITY OF PROVISIONS

RELATING TO AUDIT OF GOVT. COMPANIES TO CERTAIN
COMPANIES: Section-619B provides some other companies, in which the provisions of Section-619 will
apply [i.e., Auditor shall be appointed or reappointed by Comptroller and Auditor General
of India (C&AG)]
Accordingly, the provisions of Section-619 apply to a company in which not less than 51%
of the paid-up share capital is held by one or more of the following or any combination
thereof: The Central Government and one or more government companies;
Any State Government or Governments and one or more government companies;
The Central Government and one or more State Governments and one or more
government companies;
The Central Government and one or more corporations owned or controlled by the
Central Government;
The Central Government, one or more State Governments and one or more corporations
owned or controlled by the Central Government;
Page 21
ADVANCED AUDITING
One or more corporations owned or controlled by the Central Government or the State
Government;
More than one government company;
The auditor of such a company shall be appointed by the Comptroller and Auditor
General of India(C&AG).
Key Note
i.
The removal of the auditor of Govt. Companies shall also be done by the C&AG.
ii.
Some examples of corporations owned or controlled by the Central Government are:
LIC, UTI, IDBI.

Nationalized Banks.
Any other body corporate established under a separate Act of Parliament.
9.3 SECTION-620 POWER OF CG TO MODIFY THE ACT

RELATING TO GOVERNMENT COMPANIES
The CG may, by notification in the Official Gazette, direct that any of the provisions of the
Act, (with the exceptions of Sections 618, 619 and 619A) either shall not at all, or shall,
subject to such exceptions, modifications and adaptations as maybe specified, apply to a
Government company.
But the power of the Central Government aforementioned is not an unfettered one.
Page 22
ADVANCED AUDITING
Audit
under
Income
Tax
Why is Tax Audit Required?

The objective of Tax Audit is to ensure that the books of accounts of the company have been
maintained in accordance with the provisions of the Income Tax Act. A proper audit for tax
purposes would ensure that proper records are being maintained by the company and that the
accounts properly reflect the income reported by the company in its tax returns. This audit
effectively curbs tax evasion and ensures tax compliance.
Who needs to get a Tax Audit done?
Audit under section 44AB is applicable to four categories of assesses
1.
The first category covers any person carrying on a business whose total sales, turnover or
gross receipts exceed Rs. 1 Crore during the previous year.
2.
The second category covers any person who is carrying on a profession whose gross
receipts exceed Rs.25 Lakhs.
3.
The third category covers persons whose income is assessed on a presumptive basis under
section 44AE, 44BB or 44BBB. Where such assesses declare an income lower than that
presumed under the Sections 44AE, 44BB or 44BBB, they are required get their accounts
audited in accordance with Section 44AB.
4.
The Fourth Category covers those persons who declare a lower income than the amount
presumed under section 44AD. The difference between the fourth and the third category is
that, in the case of the fourth category, assesses are subject to audit under section 44AB
only if their income exceeds the basic exemption limit.
History Of Tax Audit in India

1. Tax audit was introduced in the year 1984. The main purpose was to ensure the accuracy
of books of accounts maintained, which forms the basis of computation of income of the
assessee
2. The onerous responsibility was casted on chartered accountants.
3. Time and again changes were made in the reporting requirements of tax Audit report
which not only widened the scope of audit to an incredible scale but has also indicated
the trust banked upon the Chartered Accountancy Profession by the Government.
4. The authorities also seek the suggestions of ICAI for changes to be made in the reporting
requirements, which are submitted to them from time to time. In fact it was the
recommendation of ICAI and persistent follow up thereof, due to which the system of efiling of Tax audit reports became a realty in the year 2013
5. The tax audit report is required to be uploaded using digital signature of the tax auditor.
Page 23
ADVANCED AUDITING
6. A question may arise whether a tax auditor appointed under section 44AB can be held
responsible if he does not complete the audit and if the tax audit report is not uploaded
before the specified date. Answer to this question will depend on the facts and
circumstances of the case. Normally, it is the professional duty of the chartered
accountant to ensure that the audit accepted by him is completed before the due date.
7. If there is any unreasonable delay on his part, he is answerable to the Institute if a
complaint is made by the client. However, if the delay in the completion of audit is
attributable to his client, the tax auditor cannot be held responsible. It is, therefore,
necessary that no chartered accountant should accept audit assignments which he
cannot complete within the above time frame
Penalty
In order to ensure proper compliance with section 44AB, section 271B has been enacted:
If any person fails to get his accounts audited in respect of any Previous year or years relevant
to an assessment year or furnish a Report of such audit as required under section 44AB, the
Assessing Officer may direct that such person shall pay, by way of penalty, a sum equal to onehalf per cent of the total sales, turnover or gross Receipts, as the case may be, in business, or of
the gross receipts in Profession, in such previous year or years or a sum of one hundred Fifty
thousand rupees, whichever is less.
In view of the specific provisions contained in section 273B, no penalty is imposable under
section 271B on the assessee for the above failure if he proves that there was reasonable cause
for the said failure. The onus of proving reasonable cause is on the assesse.
Some of the instances where Tribunals/Courts have accepted as Reasonable cause are as
follows:
Resignation of the tax auditor and consequent delay;
Bona fide interpretation of the term `turnover based on expert advice;
Death or physical inability of the partner in charge of the accounts;
Labour problems such as strike, lock out for a long period, etc.;
Loss of accounts because of fire, theft, etc. beyond the control of the Assesse;
Non-availability of accounts on account of seizure;
Natural calamities, commotion, etc.
Page 24
ADVANCED AUDITING
Income Tax audit under section

44AB
Articles deals with Income Tax Audit Provisions in India. It explains What is tax
audit, objective of tax audit, who is compulsorily required to get his accounts
audited, What are Form Nos. 3CA/3CB and 3CD, Due Date for Tax Audit,
penalty for not getting the accounts audited as required by section 44AB.
What is tax audit?
The dictionary meaning of the term audit is check, review, inspection, etc. There
are various types of audits prescribed under different laws like company law requires
a company audit, cost accounting law requires a cost audit, etc. The Income-tax Law
requires the taxpayer to get the audit of the accounts of his business/profession from
the view point of Income-tax Law.
Section 44AB gives the provisions relating to the class of taxpayers who are
required to get their accounts audited from a chartered accountant. The audit under
section 44AB aims to ascertain the compliance of various provisions of the Incometax Law and the fulfillment of other requirements of the Income-tax Law. The audit
conducted by the chartered accountant of the accounts of the taxpayer in pursuance
of the requirement of section 44AB is called tax audit.
The chartered accountant conducting the tax audit is required to give his findings,
observation, etc., in the form of audit report. The report of tax audit is to be given by
the chartered accountant in Form Nos. 3CA/3CB and 3CD.
What is the objective of tax audit?
One of the objectives of tax audit is to ascertain/derive/report the requirements of
Form Nos. 3CA/3CB and 3CD. Apart from reporting requirements of Form Nos.
3CA/3CB and 3CD, a proper audit for tax purposes would ensure that the books of
account and other records are properly maintained, that they faithfully reflect the
income of the taxpayer and claims for deduction are correctly made by him. Such
audit would also help in checking fraudulent practices. It can also facilitate the
administration of tax laws by a proper presentation of accounts before the tax
authorities and considerably save the time of Assessing Officers in carrying out
routine verifications, like checking correctness of totals and verifying whether
purchases and sales are properly vouched for or not. The time of the Assessing
Officers saved could be utilised for attending to more important and investigational
aspects of a case.
Page 25
ADVANCED AUDITING
As per section 44AB, who is compulsorily required to get his accounts
audited, i.e., who is covered by tax audit?
As per section 44AB, following persons are compulsorily required to get their
accounts audited :
A person carrying on business, if his total sales, turnover or gross receipts (as
the case may be) in business for the year exceed or exceeds Rs. 1 crore.
A person carrying on profession, if his gross receipts in profession for the year
exceed Rs. 50 lakhs.
A person who is eligible to opt for the presumptive taxation scheme of section
44AD (*) but claims the profits or gains for such business to be lower than the profits
and gains computed as per the presumptive taxation scheme of section 44AD and
his income exceeds the amount which is not chargeable to tax.
If an eligible assessee opts out of the presumptive taxation scheme, after
specified period, he cannot choose to revert back to the presumptive taxation
scheme for a period of five assessment years thereafter.
A person who is eligible to opt for the presumptive taxation scheme of section
44ADA (*) but he claims the profits or gains for such profession to be lower than the
profit and gains computed as per the presumptive taxation scheme and his income
exceeds the amount which is not chargeable to tax.
A person who is eligible to opt for the presumptive taxation scheme of
sections 44AE (*) but he claims the profits or gains for such business to be lower
than the profits and gains computed as per the presumptive taxation scheme of
sections 44AE.
A person who is eligible to opt for the taxation scheme prescribed under
section 44BB (*) or section 44BBB (*) but he claims the profits or gains for such
business to be lower than the profits and gains computed as per the taxation scheme
of these sections.
(*) section 44BB is applicable to non-resident taxpayers engaged in the business of
providing services or facilities in connection with, or supplying plant and machinery
on hire basis to be used in exploration of mineral oils. section 44BBB is applicable to
foreign companies engaged in the business of civil construction or erection of plant
or machinery or testing or commissioning thereof, in connection with a turnkey power
project.
Analysis of Provision
Who are required to get their accounts audited?
Every Person
Individual/Proprietorship
HUF
Company
Partnership Firm
AOP/BOI
Local Authority
Co-operative / Trust
AJP
Page 26
ADVANCED AUDITING
As per Guidance Note on Tax Audit Issued By ICAI the following activities have
been held to be Business :
(i) Advertising agent
(ii) Clearing, forwarding and shipping agents CIT v. Jeevanlal Lalloobhai & Co.
(iii) Couriers
(iv) Insurance agent
(v) Nursing home
(vi) Stock and share broking and dealing in shares and securities CIT v. Lallubhai
Nagardas & Sons
(vii) Travel agent.
Turnover
It includes
Profit on sale of Export License/ Duty Drawback/Cash Assistance

Gross interest income received by Moner lender
Exchange rate difference on export sales.
Advance received & forfeited from customers
Where excise duty is included in turnover, the corresponding amount should
be distinctly shown as a debit item in the profit and loss account
It excludes
Sale/ Purchase of Fixed Assets
Sale Proceeds of Assets held as Investments
Rental Income
Income by way of Interest unless assessable as business income
Any expense which is reimbursable to the agent by the client
Nature of Business
Gross Receipts/ Turnover
Selling Agent entitled only for commission
Commission Earned/ Receivable
Selling agent who is vested with the Rights of

Property, risk & reward in relation to goods
Sales Price Received/Receivable
Consignment Agent
Commission Earned
Commission Agent
a)
Pacca Arahtia
b)
Kaccha Arahtia
Total Sales
Commission Earned
Building Contractor
Gross Receipts including value of material

supplied
Speculation Business
Net Gain from speculation is considered as
Page 27
ADVANCED AUDITING
Turnover, Since Actual delivery of scrips or
items is not made
Money Lending Business
Interest Earned
Chit Fund Business
Commission Income, Brokerage Income,

Service Charges
Leasing Business
Gross Receipts including Lease Rent
Share Brokers
Dealing on behalf of customers: Only

Brokerage
Dealing on Personal Account: Sale Value
Circumstances Audit Applicable

In case the person is required by or any other law to get his accounts audited
It shall be sufficient compliance with the provisions of this section i.e. such assessee
is not required to get his accounts separately audited under this section subject to
the following conditions
The audit under that law must be completed before the specified date i.e. before
30th day of September of the Relevant assessment year &
The audit report under that law & an additional tax audit report in the form
(3CA/CD) prescribed under this section must be furnished by that date.
Basis
Activity
Limit
Nature of Assessee
Resident Individual/HUF/Firm
Total Income up
to Basic
Exemption
Limit
Total Income
exceeding to
Basic
Exemption
Limit
Other
Turnover
Business
1crore
Yes
Yes
Yes
Gross Reciept
Profesion
25Lakhs
Yes
Yes
Yes
Income/Gain
Business
44AE/BB/BBB
Lower than
specified
Yes
Yes
No
Income/Gain
Business 44AD
Lower than
8%
No
Yes
No
If a person is required by or under any other law to get his accounts audited,
then is it compulsory for him to once again get his accounts audited to comply
with the requirement of section 44AB?
Persons like company or co-operative society are required to get their accounts
audited under their respective law. Section 44AB provides that, if a person is
required by or under any other law to get his accounts audited, then he need not
Page 28
ADVANCED AUDITING
again get his accounts audited to comply with the requirement of section 44AB. Is
such a case, it shall be sufficient if such person gets the accounts of such business
or profession audited under such law and obtains the report of the audit as required
under such other law and also a report by the chartered accountant in the form
prescribed under section 44AB, i.e., Form No. 3CA and Form 3CD.
What are Form Nos. 3CA/3CB and 3CD?
The report of the tax audit conducted by the chartered accountant is to be furnished
in the prescribed form. The form prescribed for audit report in respect of audit
conducted under section 44AB is Form No. 3CB and the prescribed particulars are to
be reported in Form No. 3CD.
In case of persons covered under previous FAQ, i.e., who are required to get their
accounts audited by or under any other law, the form prescribed for audit report is
Form No. 3CA and the prescribed particulars are to be reported in Form No. 3CD.
What is the due date by which a taxpayer should get his accounts audited?
A person covered by section 44AB should get his accounts audited and should
obtain the audit report on or before the due date of filing of the return of income, i.e.,
on or before 30th September (*) of the relevant assessment year, e.g., Tax audit
report for the financial year 2013-14 corresponding to the assessment year 2014-15
should be obtained on or before 30th September, 2014.
(*) In case of a taxpayer who is required to furnish a report in Form No. 3CEB under
section 92 in respect of any international transaction or specified domestic
transaction, the due date of filing the return of income is 30th November of the
relevant assessment year.
The tax audit report is to be electronically filed by the chartered accountant to the
Income-tax Department. After filing of report by the chartered accountant, the
taxpayer has to approve the report from his e-fling account with Income-tax
Department (i.e., at www.incometaxindiaefiling.gov.in).
What is the penalty for not getting the accounts audited as required by section
44AB?
According to section 271B, if any person who is required to comply with section
44AB fails to get his accounts audited in respect of any year or years as required
under section 44AB, the Assessing Officer may impose a penalty. The penalty shall
be lower of the following amounts:
(a) 0.5% of the total sales, turnover or gross receipts, as the case may be, in
business, or of the gross receipts in profession, in such year or years.
(b) Rs. 1,50,000.
However, according to section 273B, no penalty shall be imposed if reasonable
cause for such failure is proved.
Page 29
ADVANCED AUDITING
Form 3CA and Form 3CB in Tax Audit
Difference between Form 3CA and Form

3CB
Form 3CA
Form 3CA is audit report issued by Chartered Accountant if the assesee is required to get his books of
account audited under any other act other than Income Tax Act, 1961.
In following case form 3CA is issued
If an entity covered under cost audit
If an entity covered under excise audit
If an entity is covered under transfer pricing audit
If an LLP cross the turnover of Rs 40 lakhs and covered under compulsory audit
All company are required to get there books of accounts audited under Companies Act.
Form 3CB
Form 3CB is audit report issued by Chartered Accountant if the assesee is required to get his books of
account audited only under Income Tax Act, 1961.
In following case form 3CB is issued
Proprietorship business if not covered under any other audit
Partnership firm if not covered under any other audit
HUF if not covered under any other audit
LLP if not covered under any other audit
Content of Form 3CA and Form 3CB

Form 3CA is issued by the Chartered accountant it will cover the following content
Name and address of the asseessee
Permanent Account Number of the asseessee
Date of the Audit Report
Financial year of the Audit
Page 30
ADVANCED AUDITING
Opinion of the chartered accountant regarding the activity of the business
Name, address and membership number of the chartered accountant
Date and Place of the signing tax audit report
FORM NO. 3CB

[ See Rule 6G (1) (b) ]
Audit report Under Section 44AB of the Income Tax Act, 1961 in the
case of a person referred to in clause (b) of Sub rule (1) of rule 6G
1.
We have examined the balance sheet as at ___________ and income and
expenditure account for the year ended on that date, attached herewith, of -
NAME OF THE FIRM/PROPRIETOR

ADDRESS
Permanent Account Number
2. We certify that the balance sheet and the Income and expenditure account
are in agreement with the books of account maintained at the head office at
_________.
3. (a)
We report the following observations / comments / discrepancies /
inconsistencies; if any :
(b) Subject to above :---(A)

We have obtained all the information and explanations which, to
Page 31
ADVANCED AUDITING
the best of our knowledge and belief were necessary for the
purposes of the audit.
(B)
In our opinion, proper books of account have been kept by the

head office and branches of the assessee so far as appears from
our examination of the books.
(C)
In our opinion and to the best of our information and according

to the explanations given to us, the said accounts, read with
notes thereon, if any, give a true and fair view :-(i) in the case of the Balance Sheet, of the state of the affairs of
the assessee as at ___________ and
(ii) in the case of the income and expenditure account of the
surplus / deficit of the assessee for the year ended on that date
4. The statement of particulars required to be furnished under section 44AB

is annexed herewith in Form No. 3CD.
5. In our opinion and to the best of / our information and according to
explanations given to us, the particulars given in the said Form No. 3CD and the
Annexure thereto are true and correct subject to following
observations/qualifications,if any :a.
b.
c.
(Signature & Stamp/Seal of the

Signatory)
Page 32
ADVANCED AUDITING
CONCLUSION
Reforming taxation is an on going process, through which tax policy makers and
tax administrators are continuously adapting their tax system to reflect changing
economic, social and political circumstances. The present study examines the
Taxation of Income in India during post liberalisation period and policy
perspective in this regard. It has analysed the growth of income tax revenue,
performance of Income Tax Department and perception of tax professionals
regarding Income Tax System in India. With a view to have a proper
understanding of the research topic important studies relating to personal
income tax, capital gains taxation, agricultural taxation, efficiency of income tax
administration etc. conducted in India have been reviewed. For evaluating
growth of income tax revenue in India and performance of the income tax
administration secondary data has been collected mainly from Finance Acts,
Explanatory Memorandum on the Budget of the Central Government, Reports of
the various committees/commissions, Indian Economic Survey, Income Tax Act
1961, Income Tax Rules 1962, various announcements, circulars and notifications
of Central Board of Direct Taxes, Budget speeches of Finance Ministers, Reports
of Comptroller and Auditor General of India on Direct Taxes for the period 199798 to 2007-08. For studying the perception of tax professionals regarding Income
Tax System, data has been collected from tax professionals i.e. Chartered
Accountants practicing in Punjab and Chandigarh (U.T.)
INCOME TAX POLICY

E-filing of Income Tax Return is mandatory for a company and a firm liable to
audit under Sec. 44AB of the Income Tax Act, while it is optional for other
assessees. Similarly, it has been mandatory for corporate deductors to furnish
their TDS return in electronic form with effect from June 1, 2003. 239 Further, it
has been made mandatory for Government deductors and firms liable to audit
under Sec. 44 AB with effect from A.Y. 2004-05. Deductors have to file e-TDS
Page 33
ADVANCED AUDITING
returns quarterly since A.Y. 2005-06. National Securities Depository Ltd. (NSDL)
has been appointed as the e-TDS intermediary by the Income Tax Department
Certain measures were introduced and withdrawn during the study period such
as compulsory filing of return based on certain economic criteria, Banking Cash
Transaction Tax (BCTT) and Fringe Benefit Tax (FBT). Direct Taxes Code is
contemplated to be introduced for improving the efficiency and equity of our tax
system. However, it can be observed that even after taking these measures
certain issues have not received due consideration from the Government such as
taxation of agricultural income, revision of deductions relating to savings and
medical benefits, reintroduction of standard deduction for employees and
curtailing the discretionary powers of tax officials etc.
BIBLIOGRAPHY
http://shodhganga.inflibnet.ac.in/bitstream/10603/2876/15/15_cha
pter%208.pdf
http://yourfinancebook.com/forms-used-for-e-filing-of-section44ab-tax-audit-report-3ca-3cb-and-3cd/
http://taxbaniya.com/2015/05/14/form-3ca-and-form-3cb-in-taxaudit/
https://www.google.co.in/webhp?sourceid=chromeinstant&ion=1&espv=2&ie=UTF-8#q=gross%20receipts
%20under%20section%2044ab
Page 34
ADVANCED AUDITING
http://www.caclubindia.com/articles/understanding-of-44ab-taxaudit-25032.asp
http://www.caclubindia.com/books/tax_audit_guide/Chapter_7.as
p
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ADVANCED AUDITING

MCOM PART-II (ACCOUNTANCY)

2. TYPES OF AUDITS AND REVIEWS

Testing the internal controls to ensure proper operation.

Discussing with management all preliminary observations.

Financial Audits or Reviews

MCOM PART-II (ACCOUNTANCY)

Information Systems Audits

Investigative Audits or Reviews

A historically oriented, independent evaluation performed for the purpose of attesting to

A future-oriented, systematic, and independent evaluation of organizational activities.

Information Systems (IS) Audit

There are three basic kinds of IS Audits that may be performed:

MCOM PART-II (ACCOUNTANCY)

3. System Development Review

MCOM PART-II (ACCOUNTANCY)

Oversight, Rules and Regulation

MCOM PART-II (ACCOUNTANCY)

Internal Audit Procedure

Factoring In CPA Firms

The Differences Between Risks

MCOM PART-II (ACCOUNTANCY)

MCOM PART-II (ACCOUNTANCY)

Government audit means

MCOM PART-II (ACCOUNTANCY)

In India, the function of government audit is performed by COMPTROLLER AND

7A. COMPTROLLER AND AUDITOR GENERAL

MCOM PART-II (ACCOUNTANCY)

7C. DUTIES OF THE CAG

B. Audit of Receipts of Union or States

C. Audit of Accounts of Stores and stock

MCOM PART-II (ACCOUNTANCY)

D. Audit of Accounts of Government Companies and Corporations

F. To Audit and Report

otherwise relevant to the transactions under audit, be sent to specified places.

5-Audit of Various Items

5B AUDIT OF RULES AND ORDERS/ AUDIT OF REGULARITY

5C. AUDIT OF SANCTIONSThe auditor has to examine

5D. AUDIT AGAINST PROVISION OF FUNDS

5E. PROPRIETY AUDIT

MCOM PART-II (ACCOUNTANCY)

5F. PERFORMANCE AUDIT/FULL SCOPE AUDIT

5G. AUDIT OF RECEIPTS

realized and credited to the government account by designated authorities.

MCOM PART-II (ACCOUNTANCY)

8. SECTION-617 GOVERNMENT COMPANIES

One or more State Governments.

Partly by CG and partly by one or more State Governments.

(2) A subsidiary of a Govt. Company shall also be treated as a Govt. Co.

9. AUDIT OF GOVERNMENT COMPANIES

9.1 SECTION-619A ANNUAL REPORT ON GOVERNMENT

9.2 SECTION-619B APPLICABILITY OF PROVISIONS

MCOM PART-II (ACCOUNTANCY)

Some examples of corporations owned or controlled by the Central Government are:

LIC, UTI, IDBI.

9.3 SECTION-620 POWER OF CG TO MODIFY THE ACT

MCOM PART-II (ACCOUNTANCY)

Why is Tax Audit Required?

History Of Tax Audit in India

MCOM PART-II (ACCOUNTANCY)

Resignation of the tax auditor and consequent delay;

Bona fide interpretation of the term `turnover based on expert advice;

Death or physical inability of the partner in charge of the accounts;

Non-availability of accounts on account of seizure;