Article Training Resource

Article Training Resource

I.  Training guide

II.  Ethics Code of Ethics Ethical Issue (FAQ’s)

III.  Audit

1.  Implementing Standard on Quality Control (SQC) 1: An illustrative checklist Annual Firm Personnel Independence Confirmation Independence Policies Client/Engagement Acceptance Engagement Planning Memorandum Engagement Summary Memorandum Firm Quality Control Inspection Checklist

2.  Risk Based Assessment of Financial Statements: An illustrative checklist Overall Audit Strategy Understanding the Entity Understanding the Information System Risk Assessment Procedure Steps for Risk Identification Overall Response Relating to Financial Statements in General

3.  Guide to Audit Sampling Stratification and value-weighted selection Examples of factors Influencing Sample Size for Tests of Control Examples of factors Influencing Sample Size for Tests of Details Sample Selection methods

4.  SA-230 Audit Documentation: An illustrative Checklist

5.  SA 501: Audit Evidence- Specific conditions for Selecting Item Stock verification Checklist

6.  SA 570: Going Concern Testing of Going Concern Assumption: A Checklist

6.1   Due Diligence Sample Due Diligence: An illustrative Checklist Preliminary Due Diligence: An illustrative Checklist Commercial Due Diligence: An illustrative Checklist

6.2   Environmental Audit Sample Checklist for Environmental Audit Environmental Statement Sample Environmental Audit Report

6.3   Audit of Complex Financial Instruments: Illustrative guidance

7.  Practitioner’s Guide to Audit of Small Entities

A.   General Small Audit – Model Working Papers Specimen For Profile / Information About the Auditee Applicability Checklist Engagement Letter Acceptance Formalities Checklist Representations by Management

B.   Administration Time Budget

C.   Planning & Control Understanding the Client’s Business Understanding the Accounting Policies General Audit Programme Analytical Procedures in Planning the Audit Assessment of Risk Materiality Performance Materiality Identification of Material Transactions, Account balances and Disclosures Permanent File Update Fraud Risk Questionnaire

D.   Audit Program- Balance sheet items Audit Program – Tangible Assets Audit Program – Intangible Assets Audit Program – Investments Audit Program – Inventories Audit Program – Miscellaneous Expenditure Audit Program – Debtors, Loans and Advances Audit Program – Cash and Bank Balances Audit Program – Capital and Reserve Audit Program – Liabilities

E.   Audit Program- Profit & Loss Account Audit Program – Revenue Audit Program – Expenses

F.  Working papers Regrouping Journals Adjusting Journals Specimen for Progress Sheet

G.  Reports Audit Declaration Matters for Partner’s Consideration Summary Memorandum Summary of Unadjusted Errors Financial Statement Review Subsequent Event Checklist Management Letter Points

H.  Appendices Appendix – I Standards on Auditing Checklist – Control Sheet Appendix – II Checklist for Disclosures under Accounting Standards Appendix – III Illustrative Letter of Confirmation of Inventories Held By Others Appendix – IV Illustrative Letter Confirmation of Account Receivable Appendix – V Illustrative Letter of Confirmation of Deposits Appendix – VI Disclosure Requirement Relating of Investment Appendix – VII Disclosure Requirement Relating to MSME Appendix – VIII Illustrative Letter of Appointment Appendix – IX Specimen letter to be obtained from the Company Conveying the Appointment of Auditors at the General Body Meeting Appendix – X Specimen Letter of Appointment for Tax Audit U/S. 44 AB of The Income Tax Act, 1961 Appendix – XI Illustrative Letter of Communication to Previous Auditor Appendix – XII Illustrative Guidance for the applicability Checklist

8.   Practitioner’s Guide To Audit Of Tiny Entities

A.  Applicability checklist

B.   General Specimen for Profile / Information About the Auditee Assessment of Risk Materiality

C.  Audit Program Analytical Review Procedures Matters for Partner’s Consideration Audit Summary Memorandum Management Letter Points

D.  Appendix-Standards On Auditing Checklist- Control Sheet

9.  Audit of Banks Draft Bank Branch Audit Program for the year ended March 31, 2014

10.  Concurrent Audit of Banks Checklist for various items as per RBI guidelines

11.  Revenue Audit, Stock and Debtors and Credit Audit: Checklist

12.  Model Manual of Instructions with Various Reports & Checklist

13.  Manual on Internal Audit

A.  Internal Audit Engagement Management Initial Introduction Letter Proposal of Internal Audit Services Engagement Letter Scope and Objective Organization Background Industry Research List of files and Contents

B.  Overall planning

C.  Pre Audit Opening Opening Meeting Control Statement General Process Understanding Data Needs Identification and Collection Data Analysis and Summary Preparation Previous Audit Report Analysis Brain Storming Sessions (Internal)

D.  Detailed Walk Through Selection of sample Walk Through Tracking Documentation of Walk Through

E.  Risk, Checklist, Audit Programme Listing of Risks and Audit Programme (Checklists) Corporate Risks Review Checklist Finance and Accounts Risks Review Checklists Human Resources Process Review Checklists Inventory Risks Review Checklists Information Security Review Checklist Marketing Risks Review Checklists Purchases Risk Review Checklists Production Risks Review Checklists Sale and Dispatch Risks Review Checklists Statutory Compliances Review Checklists Administration Risks Review Checklists Planning and Executive of Audit Programme Compilation of Observations and Draft Reporting Quality Check of Evidence Collection

F.  Report Compilation Draft Audit Report Covering Letter for Draft Report – by Email/Letter Head Collection of Management Comment

G.  Exit Meeting Fixing of the Meeting Time Presentation and Action Plan Preparation Updation of the Action Plan into the Draft Report

H.  Report Issue Final Report Release Checklist Audit Committee Presentation (Where Applicable) Audit Feedback Collection

I.  Work paper closure Work Paper Compilation and Quality Audit Closures Quality Audit Checklist Quality Audit Action Plan Statement Knowledge Bank updation

J.  Close Outs Invoice Format Out of Pocket Expenses Tracking Overall Closure Checklist

K.  General Annexure Confirmation of Meeting Format Minutes of Meeting Formats Agenda of the Meeting

L.  Standards on Internal Audit Issued by the ICAI

14.  Industry Specific Audits 14.1   Automobile Industry Fixed Assets: Checklist for Identifying & Assessing the Risk of Material misstatement Inventories: Checklist for Identifying & Assessing the Risk of Material misstatement Other Assets, Loans & Advances: Checklist for Identifying & Assessing the Risk of Material misstatement Current Liabilities & Provisions: Checklist for Identifying & Assessing the Risk of Material misstatement Other Income: Checklist for Identifying & Assessing the Risk of Material misstatement 14.2   Tea Industry : (Standard Internal Audit program) 14.3   Tours and Travels: (Illustrative Internal Audit Checklist) 14.4   Stock Brokers: Internal Audit Checklist 14.5   Treasury functions in Bank: Checklist 14.6    Inventories and Receivables Audit: Checklist 14.7   Mutual Funds: Internal Audit Checklist 14.8   NPO’S: Illustrative Internal Audit Checklist

IV.   Taxation A.Direct Tax Code 2013 B.Guidance Note on Tax Audit under Section 44 AB of The Income-Tax Act, 1961 Terms, abbreviations used in this Guidance Note Introduction Provisions of Section 44 AB Profession and Business explained Sales, turnover, gross receipts Liabilities to Tax Audit- special cases Specified date and Tax Audit Penalty Tax Auditor Accounting Standard Audit Procedure Professional Misconduct Audit report Form No 3CA Form No 3CB Form No 3CD Particulars of Assessee (clause 1-6) Particulars of Members/Partners (clause 7) Nature of Business of Profession (clause 8) Books of Accounts (clause 9) Presumptive Income (Clause 10) Method of accounting (clause 11) Valuation of Closing Stock (clause 12) Conversion of Assets into Stock in Trade (clause 12A) Items of Income not credited (clause 13) Particulars of Depreciation (clause 14) Deduction under sections 35AB-35E (clause 15) Bonus, Commission, PF recoveries, etc. (clause 16) Amount Debited to Profit & Loss Account (clause 17) Capital expenditure (Clause 17(a)) Person Expenses (clause 17(b)) Advertisement expenses [clause 17(c)] Payments to clubs [clause 17(d)] Penalty, fine, etc. [clause 17(e)] Amounts inadmissible u/s 40(a) [clause 17(f)] Interest, salary, bonus, etc. to partners [clause 17(g)] Amounts inadmissible u/s 40A (3) [clause 17(h)] Amounts inadmissible u/s 40A (7) [clause 17(i)] Amounts inadmissible u/s 40A (9) [clause 17(j)] Contingent liabilities [clause 17(k)] Amount inadmissible in term of section 14A [clause 17(l)] Amount inadmissible under proviso to section 36(1)(iii) [clause 17(m)] Amount inadmissible u/s 23 of MSME Act, 2006 [clause 17A] Payments to relatives under section 40A (2)(b) [clause 18] Deemed profits under section 33AB/33ABA/33AC [clause 19] Profits chargeable under section 41 [clause 20] Payments under section 43B [clause 21] MODVAT credits [clause 22(a)] Prior period expenditure [clause 22(b)] Hundi loans [clause 23] Loans/Deposits accepted [clause 24(a)] Loans/Deposits repaid [clause 24(b)] Certificate for loan taken or repayment [clause 24(c)] Brought forward loss/depreciation [clause 25(a)] Change in shareholding [clause 25(b)] Deductions under Chapter VIA [clause 26] Tax Deducted at Source [clause 27] Quantitative details of a trading concern [clause 28(a)] Quantitative details of a manufacturing concern [clause 28(b)] Tax on distributed profits [clause 29] Cost Audit Report [clause 30] Excise Audit Report [clause 31] Accounting ratios [clause 32] Statement of particulars to be annexed to Form No. 3CD Signature Code of Ethics and other matters Format of Financial Statements APPENDICES Circular No. 452 dated 17.3.1986 (Para 5.10) Circular No. 4/2007, dated 15th June, 2007 (Para 5.13) Mandatory Communication - Relevant Extracts from the Code of Ethics (Para 9.8) Council Guidelines No.1-CA(7)/02/2008, dated 8th August,2008 (Para 9.8, 9.9, 9.10, 9.23) Relevant extracts from the Code of Ethics (Para 9.18) Form of tax audit particulars to be furnished by members/ firm (Para 9.26) Revision of recommended scale of fees chargeable for the work done by the members of the Institute (Para 9.27) Criteria for classification of non-corporate entities as decided by the Institute of Chartered Accountants of India & Criteria for classification of companies under the Companies (Accounting Standards) Rules, 2006 (Para 10.3 & 10.8) Circular No. 561, dated 22nd May, 1990 (Para 13.12) Circular No. 739, dated 25-3-1996 (Para 18.1 & 36.7) The relevant extracts of the Micro, Small and Medium Enterprises Development Act, 2006 (Para 43.9) Chart of persons specified in Section 40A(2)(b) (Para 44.1) Circular No. 208, dated 15th November, 1976 & Circular No. 221, dated 6-6-1977 (Para 50.1) Recommended form of financial statements for non-corporate manufacturing entities (Para 13.8 & 67.3) Recommended form of financial statements for non-corporate trading entities (Para 13.8 & 67.3) Form No. 3CA, 3CB and 3CD C.   Questionnaire for Service Tax Audit of Banks

V.   Information Technology (to be updated shortly) XBRL A. XBRL Concepts B. XBRL Mandate C. Indian GAAP Taxonomy D. XBRL Instance Creation E. Validation of Instance Creation F. General approach to preparation of XBRL Financial Statements

VI.   Others A. Links to MCA21 (forms and circulars) B. The Companies Act 2013 C. What is PAN D. Apply for TAN E. TDS/TCS statement- AN Overview F. Filling Income Tax Return G. Digest of CBDT Notifications and Circulars

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