Checklist for documents to be obtained before starting Statutory Audit
Performing a statutory audit involves a thorough examination of a company’s financial records and statements to ensure accuracy, compliance with relevant laws and regulations, accounting standards, and transparency in reporting.
Documentation is a crucial aspect of the audit process, as it provides evidence of transactions, controls, and financial position. Refer to SA 230 – Audit Documentation for details.
SA 230 provides guidance to auditors on how to prepare audit documentation for an audit of financial statements. The purpose of audit documentation is to provide evidence that the audit was planned and performed in accordance with SAs and applicable legal and regulatory requirements.
Here’s a checklist for documents to be obtained from the auditee before initiating a statutory audit assignment:
- Audit Engagement letter
- List of Directors
- List of Key Managerial Persons (KMPs)
- Details of shareholding pattern
- Complete set of financial statements in accordance with Accounting Standards including BS, P&L, CFS, notes to accounts, and Accounting policies.
- Details of all filings done with MCA during the period till March 2023
- List of Related Parties and transactions made during the FY 2022-23. Reconcile these transactions to the ledgers of the respective related parties.
- Last year’s Statutory and Tax Audit report and copy of ITR
- Management representation letter
- Cash certificate, and
- Bank balance confirmation certificate / Statement signed by respective banks
- Assets and Inventory physical verification report
- Debtors & Creditors balance Confirmation – Direct confirmation as per SA 505 from third parties Banks, Debtor & Creditors
- List of additions and deletions of Fixed Assets during the year (along with a copy of the Invoice)
- Copy of Advance Tax Challan (if any)
- Form 26AS– reconciliation of TDS entries appearing in the books with Form 26AS.
- Explanations for variances
- Aging reports of the debtor and creditors (in revised format Schedule III)
- Bank reconciliation statement for all the banks along with the subsequent clearance date as per the bank statement
- FD Register – Fixed Deposits Schedule and All FD Certificates.
- Details of the capital structure of the Company during the year, along with the copies of statutory forms filed
- The repayment schedule of loans from banks or financial institutions
- Statutory dues payable, Challans for subsequent payment, Reconciliation with the returns filed
- Details of all contingent liabilities along with supporting documents
- GST ITC ledger (Cash and Credit ledger)
- Copy of GSTR 2B, 2A (all month FY 2022-23)
- Details of all Debit Notes and Credit Notes
- Reconciliation of sales and purchases (GST portal 2A vs 2B vs Books)
- Salary sheets, reconciliation and working of ESI, PF, Gratuity, etc. with challan deposited and return filed with respective authorities