abhishreshthaa
Abhijeet S
Audit
What is the basic objective of audit?
To promote compliance with the provisions of the Act.
What is audit? What is contemplated in the process? What is the purpose of audit?
Basically, the audit is of the business. The audit contemplates:
i. Examination of the books of accounts.
ii. Examination and verification of various claims, deductions, set off etc claimed I the return.
iii. Examination and verification of stocks and cash.
iv. Examination and verification of such other information as may be relevant.
Thus, the purpose is the verification of the return, in all respects and, its scope seems to be wide.
It is not an assessment.
The Commissioner has the power to order for an audit.
In whose cases the audit can be ordered or what are the requirements for selection of the dealers for an audit?
The following dealers may be selected for the audit in the following circumstances:
i. Returns are not filed by the prescribed dates.
ii. Claim for refund of tax.
iii. The commissioner is not prima facie satisfied with the correctness of the return.
iv. The commissioner is not satisfied with any claim or deductions or turnover disclosed.
v. Application of any criteria
vi. Random selection basis.
vii.The commissioner has a reason to believe that detailed scrutiny of the case is necessary.
The audit can be carried out by any officer to whom the powers and the duties have been delegated in writing.
What is the procedure to be followed during an audit?
During an audit, the officer may enter and search the place of business and:
i. Verify the books of accounts for the current year or 2 proceeding years with reference to any information of the business available with him;
ii. Verify the correctness of the claims of set – off and tax calculations; and
iii. Verify the stock of goods with reference to the invoices, documents and books.
The dealer may request the presence of his authorized representative during the audit.
What are the obligations of the auditee, in the course of audit?
To facilitate the audit and in that:
1. Give facilities to inspect books or documents, as may be available at such place,
2. Give facility to verify cash or stock which may be found therein, and
3. Furnish any such information as to any matter useful or relevant for any proceedings.
The officer cannot remove any books or documents or cash or stock.
What is the basic objective of audit?
To promote compliance with the provisions of the Act.
What is audit? What is contemplated in the process? What is the purpose of audit?
Basically, the audit is of the business. The audit contemplates:
i. Examination of the books of accounts.
ii. Examination and verification of various claims, deductions, set off etc claimed I the return.
iii. Examination and verification of stocks and cash.
iv. Examination and verification of such other information as may be relevant.
Thus, the purpose is the verification of the return, in all respects and, its scope seems to be wide.
It is not an assessment.
The Commissioner has the power to order for an audit.
In whose cases the audit can be ordered or what are the requirements for selection of the dealers for an audit?
The following dealers may be selected for the audit in the following circumstances:
i. Returns are not filed by the prescribed dates.
ii. Claim for refund of tax.
iii. The commissioner is not prima facie satisfied with the correctness of the return.
iv. The commissioner is not satisfied with any claim or deductions or turnover disclosed.
v. Application of any criteria
vi. Random selection basis.
vii.The commissioner has a reason to believe that detailed scrutiny of the case is necessary.
The audit can be carried out by any officer to whom the powers and the duties have been delegated in writing.
What is the procedure to be followed during an audit?
During an audit, the officer may enter and search the place of business and:
i. Verify the books of accounts for the current year or 2 proceeding years with reference to any information of the business available with him;
ii. Verify the correctness of the claims of set – off and tax calculations; and
iii. Verify the stock of goods with reference to the invoices, documents and books.
The dealer may request the presence of his authorized representative during the audit.
What are the obligations of the auditee, in the course of audit?
To facilitate the audit and in that:
1. Give facilities to inspect books or documents, as may be available at such place,
2. Give facility to verify cash or stock which may be found therein, and
3. Furnish any such information as to any matter useful or relevant for any proceedings.
The officer cannot remove any books or documents or cash or stock.