Académique Documents
Professionnel Documents
Culture Documents
Area/Requirement
Fixed Assets
Fixed Assets
Fixed Assets
Inventories
Inventories
Inventories
Loans granted
Loans taken
4(iii)(b)
Loans granted
Loans taken
4(iii)( c)
Loans granted or taken
4(iii) (d)
Loans granted or taken
4(iv)
Internal Controls
4(v)(a) & (b) Register under Section 301etc.,
4(vi)
Fixed Deposits
4(vii)
Internal Audit
4(viii)
Cost Records
4(xi) (a) & (b) Statutory dues
4(x)
Accumulated losses etc.,
4(xi)
Dues to Banks & Fis etc.,
whether securities have been created in respect of
debentures issued?
4(xii)
Loans and Advances granted
4(xiii)(a)
Chit Fund company
4(xiii)(a) to (d) Nidhi/mutual benefit fund/society
whether the funds raised on short-term
basis haveDealing
been used for long
4(xiv)
or term
Trading in Securities
investment and vice versa; If yes, the nature and amount is to be indicated
4(xv)
Guarantees
4(xvi)
Term Loans whether the management has disclosed on the end use of money raised
4(xvii)
Funds raised by public issues and the same has been verified;
4(xviii)
Allotment of shares
4(xix)
Debentures
4(xx)
Money raised on public issue
4(xxi)
Fraud
4(i) (a)
4(i) (b)
4(i)( c)
4(ii) (a)
4(ii) (b)
4(ii) ( c)
4(iii) (a)
I have staisfied myself that the above checklist has been properly completed ( refered Statement on CARO whereever relevant)
and all matters requiring the attention of the Audit Partner are set forth in the Issue sheet.(Refer the No. of the issue sheet).
Completed by:
Date:
I have reviewed the work done by the assistant-in charge and have satisfied myself that the above checklist has been
satisfactorily completed in line with the Statement on CARO issued by ICAI. Working papers were reviewed and agree with
Reviewed
by:
Date:
the conclusions
above.
No Reportable I
Refer Issue She
N/A
General Instructions
1 The home page contains the detailed description of the requirements of CARO under the respective clauses.
2. Please select the name of the audit firm from the dropdown menu on the home page.Please fill in other details
like name of the client, audit period etc., The home page also contains affirmations as to work done, review made
etc., Please fill in necessary details on completion and review of the checklist.
3. Critical matters and matters for reporting to management and other exceptions should be summarised in the
Issue sheet' (last work sheet in the workbook). Issue sheet can also be accessed through the link on home page.
4. Please click on the respective clause under the 'Guidance and Audit Procedures' column on the home page
for the detailed checklist containing audit steps to be performed, notes, responses and space for comments, if any,
for the respective clauses.The conclusion column on the home page has a drop down menu for choosing the appropriate
option.
5. Please complete the details as to prepared/reviewed by etc., on the individual checklist sheets. You can get back to
home page from the individual checklist sheet.
6. The Responses column contains a drop down menu with possible responses. Please select the appropriate response
from the options as applicable. Create a Working paper for work done under individual clauses or link to working papers,
if any, created in MYClient in this regard. Specific representations, where required, should be obtained as a part of
firm's standard representation letter.
7. This checklist cannot be construed as a substitute for the Statement on CARO issued by ICAI. Reference should
be made to the Statement for guidance and help in specific cases.
8. The words 'Act' as used in the checklist refer to the Companies Act,1956 unless otherwise stated.
Introduction
Applicability of the Order
1.This order applies to all the companies includinga. Companies incorporated outside India, which established a place of business in India;
b. All the Branches of Companies (section 228 (3) (a) of the Act).
2. This order does not apply to Banking Companies, Insurance Companies,
Companies licensed to operate under section 25 of the Act and Private companies
fulfilling the following criteriaa. having paid up capital and reserves less than Rs 50 lakhs;
(beginning of the year or at anytime during the year);and
b. no deposits are accepted from the public; and
c. no outstanding loans in excess of Rs25 lakhs from banks and financial
institutions; (at anytime during the year); and
d. turnover less than Rs 5 crores ( not to exceed the limit either in the year or in the
immediately preceding year).
Audit Procedures
Home
Fixed Assets
Response Remarks
Yes
Yes
Yes
d).Location
e).Quantity,i.e number in units.
Yes
Yes
f).Original cost
g).Adjustment for revaluation or for
Yes
Yes
Yes
Yes
Yes
Yes
N/A
N/A
N/A
N/A
Yes
N/A
N/A
N/A
Home
Audit Procedures
Home
Fixed Assets
Response
Yes
Yes
Remarks
Since company has been taken over by
Bharti this February, Bharti's
management want to carry the Fixed
assets valuation & verification in near
future, hence same as not been
conducted during the year.
Yes
No
N/A
Done
Price Waterhouse & Co
Choksey Bhargava & Co
Lovelock & Lewes
Home
Fixed Assets
Response Remarks
Audit Procedures
No
any
adverse
implications
Done
on
Done
Audit Procedures
Home
Inventories
Response
Remarks
Yes
N/A
Yes
iv) Work-in-Progress
v) Maintenance Supplies
N/A
Yes
N/A
Done
Home
Inventories
Audit Procedures
Response
Yes
Yes
Yes
Yes
No
No
Remarks
Audit Procedures
Home
Inventories
Response
Remarks
Yes
Yes
Yes
Yes
Yes
(vi) location;
(vii) particulars of the item, like nomenclature, nature, etc.
Yes
Yes
Yes
Yes
Yes
No
Done
Audit Procedures
Loans granted
Response
No
N/A
Remarks
N/A
N/A
N/A
Number of Parties
Amount involved
(In Rupees)
Year end
balance (In
Rupees)
Notes : 1. The requirement of this clause also covers advances which are in the nature of loans.
2. Loan transactions that have been squared up during the year also would get covered under the requirement.
Audit Procedures
Home
Loans taken
Response
Remarks
No
N/A
N/A
Amount
involved
(In
Notes:1. The requirement of this clause also covers advances which are in the nature of loans.
2. Loan transactions that have been squared up during the year also would get covered under the requirement.
Home
Repayment of Loans
Response
Audit Procedures
Remarks
interest
should
be
Done
Done
Overdue
Principal
(In Rupees)
Overdue
Interest
Notes: 1. If a due date for payment of interest is not specified, it would be reasonable to assume that it falls due
on each anniversary of the loan.
2. Where no stipulations have been made for repayment of the loan, the auditor should state his inability to make
comments in the absence of terms of repayment.
Audit Procedures
Home
Loans overdue
Response
Done
Done
Remarks
Audit Procedures
Yes
Done
No
Done
Notes: 1. Ordinarily, any weakness in internal controls that may result into a significant loss to the
company or may result in a material misstatement in the financial statements is considered a major
weakness.
2. Continuing failure should be judged with reference to the weakness that existed at the time of
previous year's audit.
3. If any major weakness is corrected by the date on which the audit report is issued the fact of such
N/A
No
N/A
N/A
Completed by:
Date: 7th April, 2005.
Reviewed by:
Date:
Audit Procedures
Home
Public Deposits
Response Remarks
No
N/A
N/A
N/A
N/A
N/A
Audit Procedures
Internal Audit
Response
Remarks
No
N/A
N/A
N/A
N/A
audit department;
-Reports submitted by the internal audit and follow
up
N/A
procedures thereof.
N/A
Notes: 1. The date of the balance sheet must be considered in reckoning the listing status of the company.
2. While evaluating the adequacy of internal audit system, existence or otherwise of other forms of internal controls must also
be taken into account.
Completed by:
Date: 7th April, 2005.
Reviewed by:
Date:
Audit Procedures
Home
Maintenance of Cost Records
Response Remarks
Home
Statutory Dues
Response
Audit Procedures
Remarks
Yes
understanding
obtained
underlying
documents
records.Compile the
and
and
Yes
Yes
Yes
Yes
Yes
Yes
Yes
Yes
Yes
Yes
Yes
Completed by:
Date: 7th April, 2005.
Reviewed by:
Date:
Audit Procedures
Home
Accumulated Losses etc.,
Response
No
N/A
N/A
Notes: 1.The impact of qualifications which can be quantified must be adjusted in computing the accumulated losses and
net worth, as at the balance sheet date and in arriving at the cash losses. The fact of such adjustment must be indicated
in reporting under this clause.Where the qualifications are not quantifiable, the report should state the fact that the
effect of such unquantified qualifications has not been taken into consideration in computing the above amounts.
2. Net worth is the sum total of paid up capital and free reserves after deducting the provisions or expenses as may be
prescribed. Free reserves means all reserves created out of profits and share premium account but does not include
revaluation reserve, write back of depreciation provisions and amalgamation.
3. Loss shown by the profit and loss account is adjusted for the effects of transactions of a non-cash nature such as
Depreciation, amoritisation, any deferrals or accruals of past or future cash receipts or payments in determining the cash losse
Home
holder,
the
of
subsequent
N/A
N/A
Notes: 1. The requirement covers all the defaults exisiting on the balance sheet date, irrespective of when the
defaults have occurred.
2. Dues cover all amounts including interest and principal.
3. Applications for reschedulement/resturcturing will not be binding unless approved.
4. Dues not paid by the company on account of unilateral disputes tantamount to default.
No
N/A
Notes: 1. The requirement of this clause does not extend to other forms of security like
hypothecation, guarantee etc.,
2. Other securities may be construed to mean bonds or promissory notes issued by a government
or semi-government authority.
Completed by:
Date: 7th April, 2005.
Reviewed by:
Date:
Audit Procedures
Home
Chit Fund Company
Response
Remarks
No
Completed by:
Date: 7th April, 2005.
Reviewed by:
Date:
Home
Nidhi/mutual benefit fund/societies
Audit Procedures
Response
Remarks
No
2. Check complaince with the followinga) whether the net ownedfunds to deposit
liability ratio is more than 1:20 as on the
date of balance sheet;
N/A
N/A
N/A
N/A
N/A
N/A
Notes: 1. Net owned funds means the aggregate of paid up equity capital and free reserves as reduced
by accumulated losses and intangible assets appearing in the last audited balance sheet of the company
i.e. balance sheet of the current year.
2. Deposit liability would mean aggregate of deposits accepted by the company.
Audit Procedures
Home
Dealing or Trading in Securities
Response Remarks
No
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
Notes:1. The requirement does not apply to companies which are not dealing or trading in investments but purchase
investments with a view to hold such investments and earn income from dividend or interest.Factors to consider to decide
in this regard include-objects of the company, period for which investments are normally held, reasons for purchase/sale,
internal approvals covering such purchase and sale, method of valuation-cost or lower of cost or market value, treatment
of profits/gains in the tax assessments etc.,
Comsat:
Confirmation for this to
be obtian form the BOD
Audit Procedures
Home
Guarantees given
Response Remarks
Yes
Yes
Yes
Yes
Audit Procedures
Home
Utlisation of Term Loans
Response
Remarks
No
N/A
N/A
N/A
N/A
Audit Procedures
Home
Utlisation of Funds
Response Remarks
N/A
N/A
N/A
N/A
Notes: 1. Long-term sources of funds would include share capital, reserves and surplus, provision
for depreciation, long term debt securities, long term loans. Long term application of funds would
include investment in fixed assets, long term investments and other assets of similar nature,
repayment of long term loans and advances or redemption of debt securities, use for core working
capital etc., Short term sources of funds include temporary credit facilities like cash credits,
overdraft, reduction in current assets or increase in current liabilities etc., Short term application of
funds includes all application otherwise than for long term use, increase in current assets or
decrease in current liabilities etc.,
2. The requirement has to be determined on the basis of the overall picture of the sources and
application of funds based on the balance sheet of the company unless a one to one direct
relationship can be established between a particluar source and application.
Completed by:
Date: 7th April, 2005.
Reviewed by:
Home
Date:
Audit Procedures
No
N/A
N/A
N/A
N/A
6.If in the judgement and conclusion it was eastablished that the price
charged is not fair, obtain a representation from the management as to
why such price charged is not prejuducial to the interest of the
company and consider appropriately in reporting.
N/A
N/A
N/A
Audit Procedures
Home
Securites for Debentures
Response
Remarks
Home
End use of Public issue Monies
Audit Procedures
1. Has the company made any public issue or made
utilisation during the year?
Response
No
N/A
N/A
N/A
N/A
N/A
N/A
Remarks
Home
Fraud
Audit Procedures
Response
Remarks
Done
Yes
Done
Statements"
implications
on
Done
our reporting.
Note: The following are the indicative sources relating to identification of Fraudi. the reports of internal reviews conducted, if any.
ii.Inquiries of the management about any frauds on or by the company that its has noticed or that have
been reported to it.
iii. discussions with other employees of the company.
iv. Examination of the minutes book of the meetings of Board, audit committee etc.,
Clause No.
4(i) (a)
4(i) (b)
Area/Requirement
Fixed Assets
Fixed Assets
4(i)( c)
4(ii) (a)
Fixed Assets
Inventories
4(ii) (b)
4(ii) ( c)
4(iii) (a)
Inventories
Inventories
Loans granted
4(iii)(b)
Loans taken
Loans granted
4(iii)( c)
Loans taken
Loans granted or taken
4(iii) (d)
4(iv)
Fixed Deposits
Internal Audit
4(viii)
Cost Records
4(xi) (a) & (b) Statutory dues
4(x)
Accumulated losses etc.,
4(xi)
4(xii)
4(xiii)(a)
Dealing or Trading in
Securities
4(xv)
4(xvi)
Guarantees
Term Loans
4(xvii)
4(xviii)
4(xix)
Funds raised
Allotment of shares
Debentures
4(xx)
4(xxi)
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