N. Betharia & Associates

Chartered Accountants

Audit Preparation Guide

A Comprehensive Checklist for Audit Readiness

Last Updated: August 4, 2025

Professional Disclaimer

This guide is prepared for general information and audit preparation assistance only. Specific audit requirements may vary based on company size, nature of business, and applicable standards. This document is prepared in accordance with the Companies Act, 2013, applicable Accounting Standards, and professional guidelines issued by ICAI. For specific audit matters and professional advice, consult qualified Chartered Accountants. N. Betharia & Associates does not assume responsibility for audit outcomes based solely on this guide. This document adheres to ICAI professional and ethical standards.

🏢 Statutory Audit Preparation

1. Books of Accounts & Records

Maintain proper books as per Section 128 of Companies Act, 2013
Ensure all transactions are recorded
Vouchers should be numbered and filed systematically
Bank reconciliation statements updated
Stock registers and stock verification records

2. Financial Statements Preparation

Trial Balance as on year-end date
Profit & Loss Account for the financial year
Balance Sheet as per Schedule III format
Cash Flow Statement (if applicable)
Notes to Financial Statements

3. Supporting Documents

Copy of Memorandum and Articles of Association
Board resolutions and minutes
Agreements and contracts
Insurance policies and claims
Fixed asset register with depreciation schedule
Investment certificates and statements

4. Compliance Certificates

ROC filings and acknowledgments
Tax compliance certificates
Statutory dues payment proofs
Environmental clearances (if applicable)
Labor law compliance certificates

📊 Tax Audit Preparation

5. Income Tax Related Documents

Computation of total income
Details of disallowances under various sections
Depreciation working and block-wise details
Details of brought forward losses
TDS certificates and advance tax payments

6. Transaction Analysis

Related party transactions schedule
High-value transactions analysis
Expense analysis and supporting vouchers
Revenue recognition policies and application
Foreign exchange transactions (if applicable)

🔍 GST Audit Preparation

7. GST Records and Returns

All GST returns filed during the year
Input tax credit reconciliation
E-way bills and e-invoices
GST payment challans
Purchase and sales registers

8. GST Compliance Verification

Rate of tax applied on supplies
Place of supply determination
Time of supply verification
Value of supply calculation
Reverse charge mechanism compliance

📋 General Audit Checklist

Area	Key Points	Documents Required
Cash & Bank	Reconciliation, Cash counts	Bank statements, Cash book
Inventory	Physical verification, Valuation	Stock sheets, Valuation methods
Fixed Assets	Physical verification, Depreciation	Asset register, Invoices
Investments	Valuation, Classification	Certificates, Market values
Debtors	Aging, Provisions	Ledgers, Confirmations
Creditors	Confirmations, Provisions	Ledgers, Outstanding bills

⚖️ Key Audit Standards

9. Applicable Standards

SA 200: Overall Objectives of Independent Auditor
SA 300: Planning an Audit of Financial Statements
SA 315: Identifying and Assessing Risks
SA 330: Auditor's Responses to Assessed Risks
SA 500: Audit Evidence
SA 700: Forming an Opinion on Financial Statements

📅 Important Audit Dates

Statutory Audit Report: Within 30 days of AGM
Tax Audit Report: 30th September (for companies)
Annual Return Filing: Within 60 days of AGM
ROC Filing: Within 30 days of AGM

✅ Best Practices

Maintain regular internal audit processes
Document all accounting policies clearly
Ensure board oversight on financial reporting
Regular review of internal controls
Keep audit documentation organized and accessible

N. Betharia & Associates

Chartered Accountants
FRN: 117991W
Nagpur, Maharashtra

For professional audit services:
Email: ca.nbetharia@gmail.com
Phone: +91 712 2777 044