Statutory Audit Checklist

Statutory Audit Checklist Software Intro

A statutory audit checklist is all the steps/Tasks &documents required during performing any statutory audit assignment. A statutory audit means an audit mandated and regulated by the laws and statute. Thus, the statutory audit checklist is also mandated by the statute. This checklist has to be thoroughly followed in order to have a smooth statutory audit procedure. Banks, brokerage businesses and insurance companies must provide with a detailed statutory audit at the end of a fiscal year. Content in the statutory audit checklist depends upon the type of organization that means every company has different points in the statutory audit checklist according to the nature of its operation or work.

Statutory Audit Checklist Areas

A statutory audit checklist however is always based on the statutes and provisions related to audits in India but there are four main areas on the basis of which a statutory audit checklist has to be made-

  • Cash flow in the organization
  • Stocks
  • Receivable items
  • Statutory records and requirements and payables

Steps & Sub-Steps to be Checked Under a Statutory Audit Checklist

Audit Planning Control Testing Substantive Testing
Task Assignment Internal Financial Control Share Capital
Business Briefing SSC Reserve & Surplus
Ratio Analysis Share Application Money Pending allotment
Variance Analysis Long Term Borrowings
Walk through Short Term Borrowings
Deferred Tax
Other Long Term Liabilities

Substantive Testing Substantive Testing Substantive Testing
Employees Benefits Investments Fixed Deposits with Less than 3 months Maturity
Others Loans & Advances (Assets) Other Current Assets
Trade Payables Other Non-Current (Assets) Prepaid Expenses
Other Current Liabilities Inventories Revenue From Operation - Manufacturing
C.W.I.P. Trade receivables Revenue From Operation - Trading
Depreciation / Amortisation Cash at Bank Revenue From Operation - Service
Fixed Assets Cash on Hands Other Operating Revenue

Substantive Testing Substantive Testing Substantive Testing
Other Income Postage & Couriers Repair & Maintain ace
Purchase Printing & Stationary Misc. Expenses
Employee Benefits Telephone Expenses 789
Finance Cost Conveyance Provision for Tax
Rent Insurance Tax Status
Freight Electricity & Power
Business Promotion Professional Charges

Substantive Testing - Notes Substantive Testing - Notes
Capital Commitments Related Party Transaction
Contingent Liabilities Segment Reporting
Earning in Foreign Currency (Accrual Basis) Value of Imported & Indigenous Raw Materials, Stores and Spares consumed
EPS & Deferred Tax Value of Imports (on CIF Basis)
Expenditure in Foreign Currency (Cash Basis)
Lease Disclosure Requirements
Other Material Disclosures