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chapter-vi.pdf - CHECKLIST FOR AUDIT REPORT UNDER CARO...

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65Audit Checklist – For CompaniesClient’s Name:____________________________________Period ended: ______/ _____ / 200____Y/N/NA/RemarksPreliminaryA.For all representations made to auditors on the basis of which thecheck-list is filled up, written confirmation from the client should beobtained, so far as is practicable.B.All certificates, representations, working papers on the basis of whichchecklist has been completed should be attached to this checklist andsuitably referenced.C.Detailed working note as to why auditors have come to suchconclusion should invariably be attached to this statement.D.All important observations must be properly documented and crosslinked to the individual working papers.E.Where there are exceptions; i.e., adverse conclusions, such factshould be adequately highlighted.FSignature of the Auditor should contain the name of the proprietor/partner and his membership No. of ICAIG.ApplicabilityVerify that CARO is applicable to the companyExclusions1.a banking company2.an insurance company3.a company under section 25 of the Companies Act4.private limited company having:turnover of less than Rs. 5 crores,EE±paid-up capital and reserves not > Rs. 50 lakhs,EEE±loan outstanding less than Rs. 10 lakhs from banks and FI,EL±not accepted public deposits.(In other words, CARO applicable when ANY of the abovecondition is not fulfilled) If CARO is not applicable to thecompany, state the fact in the main report.CHAPTER VIChecklist forAudit Report under CARO
66Audit Checklist – For CompaniesCHECKLISTORAUDITREPORTUNDERCAROY/N/NA/Remarks1Fixed assets1.1.1Does the company maintain fixed asset Register/Cards1.1.2Do these give the following particularsi)Description of the asset;ii)Accounts classification;iii)Location;iv)Identification No;v)Quantity;vi)Original cost;vii)Depreciation rate, amount;viii)Details regarding disposal;ix)Year of purchasex)Adjustment for revaluation (including AS 11 effect)1.1.3Does the company maintain proper records showing full particularsincluding quantitative details and situation of fixed assets1.2.1Has physical verification of the assets been conducted based onwritten instructions by the management at reasonable intervals. If yes:i)What is the frequency thereofii)What is the percentage in value thereofiii)Is there sufficient evidence thereof1.2.2Have the results of the verification been reconciled with the fixedasset record and if so:i)Has a list of discrepancies been prepared and placed on auditfileii)Are these discrepancies significantiii)How have the discrepancies been dealt with the accounts1.2.3Did the auditors observe all or any part of the verification1.2.4Has the asset register been reconciled with the financial records1.3(a)Whether there have been sale/disposal of fixed assets of thecompany?(b)What is percentage of fixed assets sold/disposed of?

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CARO

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