General Checklist Of Audit Analysis/ Documentations/Evidences (2022)

As all of us are aware about the Standards on Auditing are applicable to the Auditor for establishing the concluding report on financial statements of the company.

Inspite of the above powers exercised satisfactory, due to less importance to working papers file on audit completion to be maintained by practicing unit it seems negligence on part of the practitioner. As the Audit period is in peak now to facilitate the audit documentation and various evidences required while conducting the Audit procedures hope the following checklist with reference to relevant Standards on Auditing will stand handy and useful to one and all.

The Standard on Auditing in relation to Documentation is SA 230 which is briefly described below in flowchart:

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SADescriptionRequired Documentations/ Analysis/EvidencesYes/ No/ NASpecific RemarksSA 200 Specifies the requirement of Sufficient Appropriate Evidences to be obtainedRelevant Papers Collection at each stage of Audit as necessarySA 210Agreeing with Audit Engagement TermsAudit Engagement LetterSA 220Quality Control for an Audit of Financial StatementsQuality Control Policies and Procedures by Auditing Firms for Audit Plans, Personnel, etc.SA 230 Audit Documentation (Most Important)– Audit programmes.- Analyses.- Issues memoranda.- Summaries of significant matters.

– Letters of confirmation and representation.

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– Checklists.

– Correspondence (including e-mail) concerning significant matters.

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The auditor may include abstracts or copies of the entity’s records (for example, significant and specific contracts and agreements) as part of audit documentation. Audit documentation, however, is not a substitute for the entity’s accounting records.

SA 240The Auditor’s Responsibilities Relating to Fraud in an Audit of Financial Statements– Industry specific Risk Identifying factors- Documents on understanding of Internal Control Process- Inquiries and communication with entity’s employees /management––SA 250Consideration of Laws and Regulations in an Audit of Financial StatementsList of Relevant Registration with various states, legislations along with responsible person’s inquiry, Checklist of Compliances for prevention and detection from non compliancesSA 260Communication with those Charged with GovernanceNot necessarily required to be documented unless some specific considerationsSA 265Communicating Deficiencies in Internal Control to those Charged with Governance and ManagementObtaining reply for the same is required.SA 299Responsibility of Joint AuditorsClear bifurcation of scope and responsibility is to be done.SA 300Planning an Audit of Financial StatementsAudit Strategy and Audit PlanUpdate Audit Plans as per need like unexpected events , changes in conditions, Before starting initial audit engagement – Client acceptance and previous auditor communications/correspondenceSA 315Identifying and Assessing the Risks of Material Misstatement through Understanding the Entity and its EnvironmentFactors, Operations, Ownership, Internal Control understanding, as well documenting.SA 320Materiality in Planning and Performing an AuditSelection of Samples , Quantitative and Qualitative factors for materialitySA 330The Auditor’s Responses to Assessed RisksMaterial misstatement addressed to management, test of controls for its effectivenessSA 402Audit Considerations Relating to an Entity Using a Service OrganizationDiffers from Service to ServiceSA 450Evaluation of Misstatements Identified during the AuditNeeds to be documented with proper evaluation and conclusion.SA 500Audit EvidenceReliability of relevant test of evidences, non conflict with other evidences on same matterSA 501Audit Evidence — Specific Considerations for Selected ItemsReliability of relevant test of evidences, non conflict with other evidences on same matterSA 505External ConfirmationsProcedures for confirmation requests from related to third parties – For e.g. Bank, Receivable, Payable, Stock, Loans, InvestmentSA 510Initial Audit Engagements – Opening BalancesRecent financial statements and previous auditor reportSA 520Analytical ProceduresComparison of information for prior period, data reliability, significant fluctuationsSA 530Audit SamplingThe technical analysis for sample selection sustentative procedures, etc.SA 540Auditing Accounting Estimates, Including Fair Value Accounting Estimates, and Related DisclosuresManagement Representation Letter with appropriate assumptions made and its reasonablenessSA 550Related PartiesList of parties transactions entered, minutes books relevant details , Identifications of information provided by management transactions,SA 560Subsequent EventsAdequate disclosure representation from those charged with governanceSA 570Going ConcernRelevant factors of sustainabilitySA 580Written RepresentationsSpecifying each and every item disclosed in balance sheetSA 600Using the work of Another AuditorDivision of ResponsibilitySA 610Using the work of Internal AuditorsReport and Summary of Internal Audit reportSA 620Using the Work of an Auditor’s ExpertReliance and reliability of work performedSA 700Forming an Opinion and Reporting on Financial Statementsdetails mailed earlierSA 705Modification to the opinion in the Independent Auditor’s Reportdetails mailed earlierSA 706Emphasis of Matter Paragraphs and Other Matter Paragraphs in the Independent Auditor’s Reportdetails mailed earlierSA 710Comparative Information– Corresponding Figures and Comparative Financial Statementsneeds to be given and working paper e keptSA 720The Auditor’s Responsibility in Relation to Other Information in Documents containing Audited Financial StatementsFinancial and Non Financial Information required as per law regulation or custom (other than financial statements and auditor’s report) , Inconsistent informationSA 800Special Considerations — Audits of Financial Statements Prepared in Accordance with Special Purpose FrameworksEngagement Letter, Purpose and Intended users, Steps to determine applicable framework by management,Factors having impact on information presented.Interpretation is significant when Adoption of Another reasonable Interpretation would have produced a material difference in the information presented in the financial statementsExamples of special purpose frameworks are:

Cash Receipts and Disbursements – Cash Flow

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Reporting provisions contained in Contract – like loan agreement, project grant or bond indenture

SA 805Special Considerations– Audits of Single Financial Statements and Specific Elements, Accounts or Items of a Financial StatementEngagement Letter with clear scopeIdentifying factors of the matters to be reportedExamples:Single Financial Statement – only cash flow

Element – Account or Group including relevant notes (Account Receivable, Schedule of externally managed assets, etc.)

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SA 810Engagements to Report on Summary Financial StatementsAgreement with management for understanding scope of audit of summary financial statements in event of non acceptance of such agreement this audit reporting shall not be takenEvaluation sheetManagement criteria and its acceptanceAudited Financial Statement

Comparative list of summary with complete set of financial statement

GENERAL LIST OF DOCUMENTS TO CHECK AND FILED IN AUDIT WORKING PAPER FILE:SR NOPARTICULARSYES/NO/NA REMARKSDIRECT TAX REPORTING1Copy Of Computation Of Income of Last Year2Summary of Disallowances to be made and Allowances as per 43B3Deferred Tax Working4Form 26AS5Advance Tax Payments Challans6Invoice Of Addition To Fixed Assets7Invoice Of Sale Of Fixed Assets8TDS Payments Challans9Cash Ledger With Transaction More Than Rs. 20000/-10Status Of Pending Income Tax Assessement11Certificate Under Sec. 40(A)(3) & 269SS & 269T Of Income Tax12List of Parties covered under 40 A 2(b) with relation and transactions13TDS details as per Clause 3414Quantitative DetailsINDIRECT TAX – VAT/EXCISE/ST/CUSTOM15Applicability of VAT/CST16Applicability of Excise17Applicability of ST18Applicability of Customs18Respective Returns Copy19Respective Challans Copy20Respective Order Status, if any21Reconciliation Statement of Turnover declared and booked, wherever requiredCOMPANY LAW21Shareholding Pattern22List Of Directors23List Of KMP24Register Extracts of Transactions with related parties25Minutes Of Meeting26Fixed Assets Register27List Of Related Party As Per As1828Ledger Of Related Party From Tally Having Transaction29Calculation Of Foreign Exchange Profit/Loss30Representation From Director For Qualification31Any Change In MOA/AOA32Copy Of Annual Return Filled With MCA33Calculation Of Director Remuneration As Per Companies Act Checklist as provided below as per CA, 201334CSR – Applicability and Its Compliances35Cash Flow Statement by other than Small and One Person Company36Consolidated Financial Statement preparation applicable37Internal Financial Controls policy and monitoring process38Schedule II – Depreciation Useful life if not the same technical report39KMP appointment and its compliances40Directorship List – Appointment or Disqualification if any41Independent Director and/or Women Director42Deposits repayment other than Directors43Annual return Extracts – MGT 944Number of meetings by BOD (OM, EOM,BM) and its minutes45Vigil Mechanism46List of Contracts or Arrangements with Related Party47Various Committees to be Formed48Interest by directors49Various Forms filed with ROC50Corporate Governance51Secretarial Audit Requirement or Compliance Certificate from Practicing CSCOMPLIANCE IN OTHER ALLIED LAWS52PF Payment Challans and Returns copy, if any53Profession Tax Payment Challans and Returns copy, if any54ESIC Payment Challans and Returns copy, if any55LWF Payment Challans and Returns copy, if any56SEBI compliancesMISCELLANEOUS – OTHERS57Audit Engagement Letter(With Reference to SA 210)58Opening and Closing Trail Balance59Last Year Signed Financial Statement60List of Various Registration Obtained in other laws61List of Branches62List and place of books maintained63Loan Payment Sch. & Loan Confirmation Letter64Cash Balance Confirmation Letter Along With Denomination65Bank Balance Confirmation66Outstanding Entry Passed – Provide Supporting Xerox Copy67Draft Financial Statement68Management Representation Letter
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FAQs

What are the purposes of audit checklist? ›

Checklists help to ensure that an audit is conducted in a systematic and comprehensive manner and that adequate evidence is obtained. 6. Checklists can provide structure and continuity to an audit and can ensure that the audit scope is being followed.

What audit checklist means? ›

An internal audit checklist is the specific instructions or guidelines used by auditors to test a company's financial information, operational information, or IT systems, applications, procedures, and security.

What is GMP audit checklist? ›

A GMP audit is a comprehensive, third-party inspection of a production company. It is meant to identify operational flaws and legal violations. Along with specific inspection results, GMP audits are meant to communicate a set of standards and guidance on how to meet these standards.

What are the 5 process steps to an audit? ›

Internal audit conducts assurance audits through a five-phase process which includes selection, planning, conducting fieldwork, reporting results, and following up on corrective action plans.

What are the 4 common phases in an audit process? ›

Although every audit process is unique, the audit process is similar for most engagements and normally consists of four stages: Planning (sometimes called Survey or Preliminary Review), Fieldwork, Audit Report and Follow-up Review.

What are the 7 steps in the audit process? ›

Audit Process
  1. Step 1: Planning. The auditor will review prior audits in your area and professional literature. ...
  2. Step 2: Notification. ...
  3. Step 3: Opening Meeting. ...
  4. Step 4: Fieldwork. ...
  5. Step 5: Report Drafting. ...
  6. Step 6: Management Response. ...
  7. Step 7: Closing Meeting. ...
  8. Step 8: Final Audit Report Distribution.

What is checklist in internal control? ›

The Internal Control Checklist is a tool for the campus community to help evaluate and strengthen internal controls, promote effective and efficient business practices, and improve compliance in a department or functional unit.

What are benefits and limitations of the checklist in auditing? ›

Advantages of Using an Audit Checklist
  • act as a sampling plan and time manager;
  • be provided to the auditee ahead of the on-site audit;
  • be used as an information base for planning future audits;
  • ensure a consistent audit approach;
  • ensure that adequate evidence is obtained;
  • ensure that the audit scope is being followed;

What documents do auditors usually look at? ›

In a job description, a financial auditor evaluates companies' financial statements, documentation, accounting entries, and data. They may gather information from the company's reporting systems, balance sheets, tax returns, control systems, income documents, invoices, billing procedures, and account balances.

What are the 5 main components of good manufacturing practice? ›

5 Key Components of Good Manufacturing Practices
  • Primary Materials and Products.
  • Premises.
  • People.
  • Procedures.
  • Processes.
6 Jul 2021

What are the basic GMP guidelines? ›

A basic outline of GMP

All guidelines follow a few basic principles: The production and distribution of the drugs must minimize any risk to their quality. Manufacturing facilities must maintain a clean and hygienic manufacturing area, including laboratories and storage.

What are the 7 principles of auditing? ›

observe and comply with any applicable legal requirements; • demonstrate their competence while performing their work; • perform their work in an impartial manner, i.e. remain fair and unbiased in all their dealings; • be sensitive to any influences that may be exerted on their judgement while carrying out an audit.

What are the 5 C's of internal audit? ›

What Are the 5 C's of Internal Audit? Internal audit reports often outline the criteria, condition, cause, consequence, and corrective action.

What is full audit cycle? ›

The audit cycle involves five stages: preparing for audit; selecting criteria; measuring performance level; making improvements; sustaining improvements.

What is the most important part of an audit? ›

Evaluating internal controls

This is arguably the most important part of an audit and where many organizations can find a significant amount of value from having an audit conducted.

What is detailed audit? ›

What is a Detailed Audit? A detailed audit is used to examine a large proportion of the transactions of a business. It is typically used to search for cases of suspected fraud, where there may be a few fraudulent transactions hidden amongst a mass of legitimate transactions.

What auditors look for during the audit process? ›

Individual audit criteria might include:
  • Relevant policies.
  • Processes and standard operating proceudures.
  • Performance objectives and KPIs.
  • Statutory and other relevant regulatory requirements.
  • Management system requirements (e.g. other ISO standards)
  • Risks and opportunities as determined by the auditee.
12 Feb 2020

How do I prepare an ISO audit checklist? ›

Here are six tips to impress the auditor and obtain your ISO certification on the first try.
  1. Be well-prepared. ...
  2. Take internal audits seriously. ...
  3. Implement corrective actions. ...
  4. Don't forget your management review. ...
  5. Correctly monitor objectives. ...
  6. Ensure that everything is clean.

What is a process audit? ›

A process audit is an examination of results to determine whether the activities, resources and behaviours that cause them are being managed efficiently and effectively. A process audit is not simply following a trail through a department from input to output - this is a transaction audit.

What is supplier audit checklist? ›

A supplier audit checklist is used to audit your supplier's facility, record if the supplier meets the criteria, and evaluate its suitability to be your supplier. The checklist can serve as a guide for the inspector to evaluate the following areas: Management Responsibility. Infrastructure, Sanitation, and Maintenance.

What are the stages of audit? ›

However, an audit usually has four main stages:
  • The first stage is the planning stage. ...
  • The second stage is the internal controls stage. ...
  • The third stage is the testing stage. ...
  • The fourth stage is the reporting stage.
5 Mar 2022

How many stages are in the audit cycle? ›

1) Selecting a topic. 2) Agreeing standards of best practice (audit criteria). 3) Collecting data. 4) Analysing data against standards.

What is an internal audit plan? ›

The plan is developed based on an assessment of risk and potential exposures that may affect the organization. Ultimately, Internal Audit's objective is to provide management with information to reduce exposure to the negative effects that may be associated with operations intended to achieve management's objectives.

What are the 5 components of internal control? ›

There are five interrelated components of an internal control framework: control environment, risk assessment, control activities, information and communication, and monitoring.

What are the 3 types of internal controls? ›

Types of Internal Controls
  • Overview. There are two basic categories of internal controls – preventive and detective. ...
  • Preventive Controls. ...
  • Detective Controls. ...
  • Last Reviewed. ...
  • Training. ...
  • Contacts.

What are the most important factors that an internal control checklist should be concerned with? ›

Efficiency and effectiveness of operations. Reliability of reporting. Compliance with laws and regulations.

What are the characteristics of checklist? ›

Universal Characteristics of Effective Checklists
  • All items that need to be included should be included. ...
  • No items should be included if they don't need to be checked. ...
  • Items should be listed in a logical order, so they can easily be found.

What are the benefits of using a checklist? ›

Benefits of Checklists
  • Checklists ensure that the essential tasks get done. ...
  • They help avoid distractions by forcing you to only do the tasks that are on the checklist.
  • Checklists free the mind from having to remember the steps that need to be completed and worrying about the possibility of forgetting to do something.

What are the types of checklist? ›

Here are five types of checklists you can use to make your workplace safer and more efficient:
  • To-do Checklists. This is the most common type of checklist. ...
  • Training Checklists. ...
  • Task Checklist. ...
  • Troubleshooting Checklist. ...
  • Coordination Checklists.

Why is audit important? ›

An audit is important as it provides credibility to a set of financial statements and gives the shareholders confidence that the accounts are true and fair. It can also help to improve a company's internal controls and systems.

Who can perform audit? ›

Who can perform an audit? In India, chartered accountants from ICAI or The Institute of Chartered Accountants of India can do independent audits of any organisation. CPA or Certified Public Accountant conducts audits in USA.

Who prepares an audit report? ›

The auditor prepares the report after taking into account the provisions of the Companies Act, the accounting standards and auditing standards. Also, he lays the report before the company in the annual general meeting.

How do you prepare audit documents? ›

Audit Documentation: The Steps of Conducting an Audit Continued
  1. Receive vague audit assignment.
  2. Gather information about audit subject.
  3. Determine audit criteria.
  4. Break the universe into pieces.
  5. Identify inherent risks.
  6. Refine audit objective and sub-objectives.
  7. Identify controls and assess control risk.
  8. Choose methodologies.
8 Jul 2019

What is Checklist in pharmaceutical industry? ›

What is a Pharmaceutical Checklist? A pharmaceutical checklist is a powerful tool used to assist drug manufacturers in performing systematic safety and quality audits across their facilities, products, and processes.

What is the meaning of GMP? ›

Good manufacturing practice (GMP) is a system for ensuring that products are consistently produced and controlled according to quality standards. It is designed to minimize the risks involved in any pharmaceutical production that cannot be eliminated through testing the final product.

Which audit is performed to assess the GMP and CGMP compliance? ›

A GMP audit is conducted to check whether your company complies with the federal regulations, Code of Federal Regulations (CFR)and to identify if you have full control over your processes, facility and quality management system (QMS). The regulatory authorities will notify you through Form 482: Notice of Inspection.

What are GAMP 5 guidelines? ›

GAMP® 5: A Risk-Based Approach to Compliant GxP Computerized Systems provides pragmatic and practical industry guidance that aims to achieve compliant computerized systems that are fit for intended use in an efficient and effective manner, while also enabling innovation and technological advances.

What are 4 m of GMP? ›

The mainstay of GMP is the 4M principle; Men, machines, material and manufacturing premises. All these 4Ms are equally important.

What is GMP audit checklist? ›

A GMP audit is a comprehensive, third-party inspection of a production company. It is meant to identify operational flaws and legal violations. Along with specific inspection results, GMP audits are meant to communicate a set of standards and guidance on how to meet these standards.

What is GMP documentation? ›

What is GMP documentation? As a component of Good Manufacturing Practices, GMP documentation ensures the quality and traceability of manufacturing processes, maintenance and quality checks. The documents fall into two major categories: procedural or instructional, and compliance records.

WHO GMP guidelines list? ›

General guidelines of WHO useful for pharmaceutical manufacturing.
...
These guidelines cover all the pharmaceutical topics as:
  • Process validation.
  • Cleaning validation.
  • Analytical method validation.
  • DQ, IQ, OQ, PQ of equipment.
  • Water system validation.
  • HVAC validation.
  • Computer system validation.
  • Market complaint handling.

What are the three 3 methods of collecting audit evidence? ›

Audit procedures to obtain audit evidence can include inspection, observation, confirmation, recalculation, reperformance and analytical procedures, often in some combination, in addition to inquiry.

What is audit criteria? ›

Audit criteria are standards against which the actual performance (adequacy of systems and practices and the economy, efficiency and effectiveness of activities) is compared or evaluated.

What is internal audit Mcq? ›

Internal audit means. a) Audit undertaken to ascertain truth and fairness of state of affairs. b) Audit undertaken internally to evaluate management functions. c) Audit undertaken by employees of the organization to check financial irregularities. d) Audit by independent auditor to improve internal affairs.

What are the types of audit findings? ›

There are four types of audit reports: and unqualified opinion, a qualified opinion, and adverse opinion, and a disclaimer of opinion.

What are the 5 process steps to an audit? ›

Internal audit conducts assurance audits through a five-phase process which includes selection, planning, conducting fieldwork, reporting results, and following up on corrective action plans.

What are the 7 steps in the audit process? ›

Audit Process
  1. Step 1: Planning. The auditor will review prior audits in your area and professional literature. ...
  2. Step 2: Notification. ...
  3. Step 3: Opening Meeting. ...
  4. Step 4: Fieldwork. ...
  5. Step 5: Report Drafting. ...
  6. Step 6: Management Response. ...
  7. Step 7: Closing Meeting. ...
  8. Step 8: Final Audit Report Distribution.

Where does auditing begin? ›

Audit starts only when accounting ends.

What is supplier audit checklist? ›

A supplier audit checklist is used to audit your supplier's facility, record if the supplier meets the criteria, and evaluate its suitability to be your supplier. The checklist can serve as a guide for the inspector to evaluate the following areas: Management Responsibility. Infrastructure, Sanitation, and Maintenance.

What documents do auditors usually look at? ›

In a job description, a financial auditor evaluates companies' financial statements, documentation, accounting entries, and data. They may gather information from the company's reporting systems, balance sheets, tax returns, control systems, income documents, invoices, billing procedures, and account balances.

What is checklist in internal control? ›

The Internal Control Checklist is a tool for the campus community to help evaluate and strengthen internal controls, promote effective and efficient business practices, and improve compliance in a department or functional unit.

What is supplier quality audit? ›

A supplier audit inspects a supplier's usage of industry regulation practices, including the health and safety and correct manufacturing processes. Generally, auditing a supplier covers a large area with several practices. Therefore they are usually bespoke to the client's requirements.

How do you audit purchase orders? ›

Auditor Checkpoints

It should always be written. Check whether the Purchase order was made by the assigned persons and approved by the authorized person. Check whether all the terms and conditions mentioned on the Purchase order are satisfied by the vendor.

How do you audit a supplier? ›

Ask to review the supplier's audit findings of its own suppliers; if the supplier doesn't allow that, then ask to see the supplier's incoming inspection of subcontracted materials, as well as any other documentation that will prove the supplier is holding its vendors to quality standards and receiving quality items.

What is the importance of audit documentation? ›

Purposes of Audit Documentation

It provides evidence of auditors' basis for a conclusion about the achievement of the overall objective. It provides evidence showing that audit work was properly planned and performed in accordance with ISAs and other legal and regulatory requirements.

What are the 5 components of internal control? ›

There are five interrelated components of an internal control framework: control environment, risk assessment, control activities, information and communication, and monitoring.

What are the 3 types of internal controls? ›

Types of Internal Controls
  • Overview. There are two basic categories of internal controls – preventive and detective. ...
  • Preventive Controls. ...
  • Detective Controls. ...
  • Last Reviewed. ...
  • Training. ...
  • Contacts.

What are the steps to conduct an internal audit? ›

The basic steps to conduct an internal audit are as follows:
  1. Identify areas that need auditing. ...
  2. Determine how often auditing needs to be done. ...
  3. Create an audit calendar. ...
  4. Alert departments of scheduled audits. ...
  5. Be prepared. ...
  6. Interview employees. ...
  7. Document results. ...
  8. Report findings.
3 May 2021

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