Question

The author lists a number of "quick win" areas for audit functions. Discuss two of them.

Answer 1

Following are the two quick wins areas in an audit:

1. Matching total sales and purchases with GST returns: The GST returns are submitted monthly or quarterly depending on the sales turnover of the assessee..While comencing an audit if the audit team firstly and foremostly tally the entire year's Sales and Puchases with those reflected in the Trading and Profit & Loss Account,then an almost clear picture comes that the primary entries have been done properly..

2. Matching previous year's closing balance with current year's opening balance: The closing balance shown in the previous year's Financial Statement should be accurately be shown as the current year's opening balance.If both the figures matches then we could have a clear picture that the Primary posting of opening balance has been correctly done..