CHECKLIST FOR CONDUCTING AUDIT OF ACCOUNTS To review

1. To check implementation of the earlier Financial Audit observations by IA, Statutory Auditors & Govt. Audit. 2. Verification of Audited opening balances received from headquarters, if any 3. Clearance of previous year liabilities. 4. Ageing of debtors, account receivable and corresponding provisioning. 5. Scrutiny of journal Vouchers (Test check). 6. Bank/Cash Payment Vouching for 2 weeks in each Month on test check basis. 7. Bank Reconciliation statements. 8. 14. Recoveries from Government. 15. Foreign Exchange Transactions (AS-11) 16. Accounting of Fixed Assets (AS-10) 17. Depreciation (AS-6) 18. Checking of expenditure allocation through cost cycles, Declaration of Dry wells and accounting treatment thereof. 19. Adjustment of IUT items. 20. Action points as per minutes of the meeting of the Finance Co-ordination Meeting 21. Action points as per the Management Letter issued to C&AG in previous Year 22. Compilation of variation statements (in respect of sales and other items of Expenditure) 23. Cut-off date for accounting of dry wells. 24. Valuation of inventories. (AS2) 25. Product wise P&L Account. (AS17) 26. Balance confirmation from debtors/creditors. 27. Provisions for liabilities 28. A review of the cost cycle design 29. Cash Call received and paid from/to JV partners (wherever applicable) 30. Details of provision for abandonment cost (AS-28). 31. Reconciliation of sub ledger accounts- Advances to employees with GL balances. 32. Verification of Purchase Invoices to verify the VAT amount and to see that Correct amount is submitted to sales section to get the Benefit of VAT on Purchases. 33. Compliance of the Guidance Note on Accounting of Oil and Gas Business issued by the Institute of Chartered Accountants of India. 34. Compliance of the “Income tax on Fringe benefit tax” (FBT) introduced in the Finance Act 2005 till the date it was applicable 35. Compliance of the Cost Accounting & Record Rules. 36. In addition to above the Audit Program of Central Accounts as per the Volume II of IA manual /Compliance of Corporate A/cs circulars should also be followed. 37. Capital work in Progress 38. Contingent Assets & Contingent liabilities & Provisions 39. Open line items in different account Heads & Park documents 40. Booking of expenditures and regular consumption in system & in correct cost centres/WBS 41. Compliance of Statutory auditors points /observations which are placed before A&EC

Calculation of Impairment loss as per As-28 (refer point no 7. Incentives. Bonus. Land & Buildings records 46. Current /Non current classifications 45. if provided at HQ books.42. 43. Debits/Credits for ONGC employees posted at OVL/MRPL. BI module – classification of the balances in BI module 44. Verification of figures of Balance sheet (on sample basis) of few projects/region with figures incorporated in Consolidated Balance sheet. Non uniformity in accounting treatment of expenses. Disclosure requirements with respect to dues to Micro and Small scale Industrial Undertakings in the Balance sheet. if any by various projects/regions.5 of the circular) Checking of Subsidy. Discrepancy/deficiency in process may also be reported. Payables etc. Status of Physical verification of inventory and Fixed Assets. E2-E5 Anomaly) with appropriate supporting documents as per As-15. Points to be covered during audit of the consolidated Accounts Sr Points covered by HQ.4 of the circular) Expense/Liabilities provided at HQ level on adhoc basis on behalf of Projects/Regions. GR/IR. Medical benefits. Leave Encashment. Review of the disclosed accounting policies in previous year and to see whether any changes required in view of further developments 1 2 3 4 5 6 7 8 9 10 Review of the unaudited figueres published in the media 11 Deferred tax assets & Liabilities 12 Provision for taxes 11 Any other points which may come across during the course of audit . Old items lyin gin provisions. Any other points which may come across during the course of audit. 47. (Refer point no 7. receivables. Dehradun in Consolidated Balance sheet: Checking of liabilities provided at HQ level (Gratuity.

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