Engagement Details
Property, Plant & Equipment (PPE)
- 1.
Obtain Fixed Asset Register (FAR) and reconcile with books
- 2.
Verify additions with purchase invoices, board approvals and capitalisation date
- 3.
Verify deletions/disposals with sale invoices and gain/loss computation
- 4.
Physically verify sample of high-value assets
- 5.
Recompute depreciation as per Schedule II / Ind AS 16
- 6.
Check impairment indicators as per AS 28 / Ind AS 36
Investments
- 1.
Obtain schedule of investments and reconcile with books
- 2.
Verify existence through physical/demat statements or confirmations
- 3.
Check classification (Current / Non-Current, FVTPL / FVOCI / Amortised)
- 4.
Check valuation as per AS 13 / Ind AS 109 / Ind AS 28
- 5.
Verify permanent diminution / impairment in value
Inventory
- 1.
Attend physical verification of inventory at year end
- 2.
Reconcile physical count with book stock and investigate variances
- 3.
Verify valuation as per AS 2 / Ind AS 2 (lower of cost or NRV)
- 4.
Obtain confirmations from inventory held at third-party locations
- 5.
Verify inventory ageing and provision for slow-moving / obsolete items
Trade Receivables
- 1.
Obtain ageing analysis and reconcile with general ledger
- 2.
Send balance confirmations to sample debtors
- 3.
Verify subsequent receipts from bank statements
- 4.
Check ECL / provision for doubtful debts as per Ind AS 109 / AS
- 5.
Verify write-offs with management approval
Cash & Bank Balances
- 1.
Obtain bank confirmations for all bank accounts
- 2.
Review Bank Reconciliation Statements at year end
- 3.
Verify physical cash on hand by surprise count
- 4.
Check fixed deposits with original certificates / bank confirmations
Equity & Reserves
- 1.
Verify authorised and issued capital from MCA master data
- 2.
Obtain list of shareholders / partners as at year end
- 3.
Verify movement in reserves and surplus
- 4.
Check dividend declared and DDT / TDS compliance
Borrowings
- 1.
Obtain loan confirmations from all lenders
- 2.
Verify sanction letters and terms of borrowings
- 3.
Check interest computation and TDS on interest paid
- 4.
Verify security / charge creation with MCA (CHG-1 filings)
- 5.
Check classification between Current and Non-Current
Trade Payables & Other Liabilities
- 1.
Obtain ageing analysis of trade payables
- 2.
Send balance confirmations to sample creditors
- 3.
Verify subsequent payments from April bank statement
- 4.
Identify MSME parties and verify 43B(h) disallowance for delayed payment
- 5.
Verify statutory dues (GST, TDS, PF, ESI) with returns filed