Basic Check List for effective compliance of Tax Audit work

Tax Audit due date is approaching fast and all of us are stretched to make this statutory compliance for our clients in this challenging situation.

 The tax audit is conducted as per provisions of Income Tax Act and as per guidance notes issued by ICAI. In supplement to same, I have prepared a very Basic Check List of some important points which may be handy and useful in your audit tax audit compliance work which is as follows-


1) Letter of appointment and acceptance thereof.

2)NOC from previous auditor wherever applicable.

3)Digital signatures of Client and Chartered Accountant and validity of digital signatures. Updation of digital signatures on web site in case new digital signatures.

4)Login to Income Tax site using client’s login prior to uploading Tax audit forms so that contact details updation problem does not arise.

5)Keep the passwords of digital signatures and Income Tax website ready.

6)Availability of Chartered Accountant details like Pan No, Membership No, Address etc.

7)Availability of correct Bank Account details with IFSC Code.   

8)Downloading and Checking 26AS for TDS and other details.

9)VAT, Service Tax Registration Numbers- Assessment and return filing status to be furnished.

10)Comparison with the last year’s Audit Report, if available and audit observations of earlier year.

11)Any inadmissible expenses are to be provided for. Prepare a list, get it signed and keep it in the file for reference.

12)Stock details of client’s business are required- obtain signed stock statement for audit documentation purpose.

13)Obtain a Certificate from the Client with reference to Loans and repayment thereof for compliance with section 269SS and 269T.

14)Confirm that Balance Sheet and Profit and Loss Account are signed along with stamps both by Auditor & Client and these are scanned & converted into PDF.

15)Confirm that data entered in income computation software/ utility for accuracy. Double check is required.

16)Availability of funds in bank account for making self assessment tax payment, especially in last few days of due date.

17)Back up of Tally/Accounting record of client should be taken after finalization.

18)Timely issuance of bill for professional fees and audit fees to clients.

I hope above points will be useful in completing your audit work in time.

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