Checklist for Auditors Departmental Auditor would be looking forward to these things while doing audit (Happy GST series – 30) by CA Rajender Arora
Departmental Auditor would be looking forward to these Documents, Returns and
things while doing audit.
1. List the documents required for Audit?
Following are the documents which a tax authority can seek while audit by them:
I. Financial statements
1. Balance Sheet
2. Profit and Loss Account
3. Trading Account
4. Directors/Auditors Report
5. Trial Balance
6. Ledger entry and Journal Entry
7. Income tax audit report and Income tax returns
8. Cost audit report
9. Purchase book
10.Purchase return book
11.Debit Notes
12.Credit Notes
13.Monthly Stock statement
14.Fixed Asset Register
II. Other Documents
1. Purchase Orders
2. Price Circulars
3. Delivery Challans
4. Material transfer note
5. Sales Book
6. Outward supply book
7. Any agreement/MOU
8. Stores Ledger
9. Goods Receipt Note (GRN)/Material Receipt Note/Inspection cum
Receipt Report (ICRR)
10.Material Return Note
11.Rejected Goods Register
12.Waste Register
13.Physical Stock Verification Statement
14.Job work/Sub-contract Register
III. Returns under GST:
1. GSTR3B filed monthly details of liability, ITC and Payment.
2. GSTR 1 details of outward supplies
3. GSTR 4 details of supplies by composition tax payer filed quarterly.
4. GSTR 9/9A/9C and reconciliation statement or GST audit report
5. GSTR 7 Tax deducted at source
6. E way bills (Generated and accepted both)
2. How should be the Auditor’s outlook towards Audit?
The auditors are required to keep in view, the prevalent trade practices, the economic
realities as also the industry and business environment in which the registered person
operates. Therefore, the auditor should take a balanced and rational approach while
conducting the audit.
Confidentiality should be maintained in respect of sensitive and confidential
information furnished to an auditor during the course of audit.
3. What to check in Audit?
I. Scrutiny of Financial Statements
1. Director’s Report
2. Auditor’s Report
3. Trial Balance
4. Cost Audit Report
5. Profit and Loss Account
6. Balance Sheet
7. Notes to the Accounts
8. Scrutiny of Tax Deducted at Source (Income Tax TDS) Certificates
9. Tax Audit Report
10.Income Tax Returns
11.Ledger
a. Debtor’s Ledger
b. Creditor’s Ledger
c. General Ledger
12.Debit Notes
13.Credit Note
14.Journal Voucher (JV)
15.Internal Audit Report
II. Scrutiny of other documents
1. INVOICING PATTERN
2. STOCK VERIFICATION
3. Purchase order/Agreements/MOUs
4. Sales / outward supply Book
5. Stores Ledger
6. Sub contract Register / Job Work Register
7. Purchase/Inward supply Book
8. Purchase Return Book
9. Fixed Assets Register
10.Waste Register
11.Price Circular
12.Delivery Challan
13.Material Transfer Note
14.Materials Receipt Note/Goods Receipt Note (GRN)/Inspection cum
Receipt Report (ICRR)
15.Material Return Note
16.Material Requisition Note (MRN) and Material Issue Note (MIN)
III. Admissibility of Input tax credit-
1. Pre-Requisites to claim Input Tax Credit (ITC)
2. Documents and forms required to claim Input Tax Credit
3. Certain special conditions under which Input tax credit will be available
as mentioned in Sec 18 of the CGST Act
4. Claiming Input Tax Credit Against Inputs Sent for Job Work
5. Input Tax Credit on Supply of Capital Goods
6. ITC Provided by Input Service Distributor (ISD)
7. ITC in case of imports
8. ITC is Not Available to be claimed in the Following Cases, u/s17 (5)
9. Reversal of Input Tax Credit
10.ITC verification in the light of fake invoicing
11.Transitional verifications
IV. Applicability of correct rate of tax
V. Applicability of correct classification of supplies
VI. Application of correct valuation, place of Supply rules and Point of Taxation
rules
1. VALUATION
2. PLACE OF SUPPLY
VII. Anti-Profiteering rules
VIII. Scrutiny of returns
1. Time of filling and payment
2. Reconciliation of returns with E way bills and Financial statements
IX. OTHER CHECKS
Source: Handbook for Departmental Officers Audit/Scrutiny in GST Era by Radhe
Krishna IRS
DISCLAIMER: This publication is merely a general guide meant for knowledge purposes
only. All the references or content are for educational purposes only and do not
constitute a legal advice. We do not accept any liabilities whatsoever for any losses
caused directly or indirectly by the use/reliance of any information or conclusion
contained in this publication. Prior to acting upon this publication, you're suggested to
seek the advice. This work is entirely in the interest of profession and to contribute into
my beloved subject of GST.
