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INTERNSHIP REPORT

Mian Naim Asif Rashid &


Co.
(Chartered Accountants)
Program: BS Commerce
Session: 2014-2018
Submitted to:
Mr. Zahid Ali
Submitted By:

Name: Ahsan Akhter


Roll#: 29
Email address#: ahsansomroo975@gmail.com
Mailing address#: Ahmed Pur East

Contact#: 0305-5444431
Date of Submission: 16-10-2018

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To:
The Incharge internship Programme,
Department of Commerce,
Islamia University Bahawalpur,
Bahawalpur.

Subject: - INTERNSHIP REPORT ON MIAN NAIM ASIF RASHID


& CO. (CHARTERED ACCOUNTANTS)

Respected Sir,

It is a great appraisal for me to present you the internship report as compulsory


for the BS (Commerce) degree programme.
In this respect, Mian Naim Asif Rashid & co, Chartered Accountants have been
very cooperative with me through out my internship programme. They are not
only helpful in providing me information on the subject of the events and
processes in practice but also very keen to use my skills. The report is containing
a collection of information showing there cooperation and help.

Yours truly,

Ahsan Akhter
Roll No. 29
BS Commerce
Session (2014-2018)

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a
b
O GOD OPEN MY EYES
TO SEE WHAT IS BEAUTIFUL,
MY MIND TO KNOW WHAT IS TRUE,
MY HEART TO LOVE WHAT IS GOOD.

Holy Prophet Muhammad (S.A.W)


The Greatest Social Reformer

To My Beloved Parents

And
First step to talk……

To
All those from whom I learnt
Who always remains
In my heart
Through out the whole span of our life and are
nearest, dearest and deepest
to me.

c
d
I am very thankful to the following person who has given me enough

assistance and guidance and spare their valuable time for me during

my Internship Period.

Mr. Mian Naim Principal

Mr. Misbah Audit Supervisor

Miss. Rabia Audit Supervisor

I am also very grateful to all the CA internees and ACCA internees

who make me able to get benefit from them.

e
Internship is the most important part of the BS (Commerce)
studies. In fact internship provides the opportunity to us to
implements our bookish knowledge in practice.

More than the internship is also provides the plate form to us


to assess our strength and grip toward the concepts of the post
graduate knowledge. This report reflects what I have learned during
my internship period.

I have spent my time in different departments of the Mian Naim Asif


Rashid & co., and I tried my best to get the maximum knowledge
during my training period.

I am very thankful to all members of the Mian Naim Asif Rashid & co.,
for their sincere efforts and devotion for the preparation of this
report

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Synopsis:

This report contains a deep walk through in the field of audit, Tax
and Accounts. Audit is very important to keep a close eye on the performance of
the organization. It not only keeps check and balance but also protect the
stakeholders. Mian Naim Asif Rashid & co is one of the oldest firm in Lahore
indulge in the business of auditing. It not only audits the Accounts of the
companies but provide different type of other services as well. These services
may involve Accounts maintenance, Tax, Financial advisory Services and
Investment advisory services etc. It’s my pleasure to work in such a organization
where the real application of bookish knowledge. This report also contains the
different types of tasks performed by me. Although each and every can not be
learnt over night yet I have good experience audit firm. The conclusion part
determines what the learning was and how they are effective. In the last some
recommendations are given in respect to company. In the end of report some
annexure are attached including my work and some others.

g
Me with my Principal Mian Naim and some colleaques in firm

Mian Naim Principal


Mobile Number# 0300-8443223
E-mail Address# info@smnaim.com

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TABLE OF CONTENTS
Page No.
Chapter#1 Introduction 01
1.1 What is Audit? 01

1.2 Types of Audit 02


1.3 Types of Auditor 03
1.4 What is CA? 03
1.5 Major Audit Firms in Lahore 04
1.6 Mian Naim Asif Rashid & co 05
1.7 History 06
1.8 List of Clients 07
1.9 Services 08
1.10 Types of Services 09
1.11 Audit 10
1.12 Risk Advisory Services 11

1.13 Investment Advisory Services 12

1.14 Financial Advisory Services 13

1.15 Tax Advisory Services 13

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Chapter#2 Learning Review 15
2.1 Work involvement 16
2.2 Casting & Vouching 17
2.3 Annual Stock taking 18
2.4 Work on QCR 27
2.5 Verification 30
Conclusion 32
Recommendations 33

References 35
Appendix 36

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WHAT IS AUDIT?

Definition:
“An audit is the independent examination of financial information
of any entity, whether profit oriented or not, and irrespective of its size, or legal
form, when such and examination is conducted with a view to expressing and
opinion thereon.”
“The most general definition of an audit is an evaluation of a
person, organization, system, process, project or product”.
Audits are performed to ascertain the Validity; the term validity
(also called logical truth, analytic truth, or necessary truth) as it occurs in logic
refers generally to a property of particular statements and deductive arguments.
And also provide an assessment of a system's internal control. The
goal of an audit is to the person / organization / system etc. under evaluation
based on work done on a test basis. Due to practical constraints, an audit seeks
to provide only reasonable assurance that the statements are free from material
error. Hence, statistical sampling is often adopted in audits.

The word audit has two meanings. The first is the security audit, whereby a
consulting firm comes in and validates a company’s security profile. This is
similar to how accounting firms review a company's books. The second term is
infosec specific, and means an "auditing" subsystem that monitors actions within
the system. For example, it may keep a record of everyone who logs onto a
system. Such a record is known as an audit trail.

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A person trained and qualified to better individuals through
auditing is called an auditor. Auditor is defined as “one who listens,” from the
Latin audire, meaning “to hear or listen.”

To audit means to go through the process of examining and


verifying a company's financial records and supporting documents.

An audit is an IRS examination of an individual or corporation's tax


return, to verify its accuracy. There are three types of audits: correspondence
audits (the IRS mails a request for additional information), office audits (an
interview is conducted at a local IRS office), and field audits (an interview is
conducted at a taxpayer's place of business, for a corporate tax return). Since
there is always the chance of an audit, experts recommend keeping good records
to support all the information in a return. The reason detailed and accurate
bookkeeping is so important is that the burden of proof is on the filer, not the
IRS.

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Types of Audit
Quality Audits:
Quality audits are performed to verify the effectiveness of a
quality management system. This is part of certifications such as ISO 9001.
Financial audits:
Financial audits, a set of financial statements are said to be true
and fair when they are free of material misstatements - a concept influenced by
both quantitative and qualitative factors.
Internal audit:
This type of audit is conducted by the company itself to keep
check and balance on company performance. It is up to company either he can
conduct internal audit or not.

Types of Auditors:
There are two types of auditors:

Internal Auditors:
Are employees of a company hired to assess and evaluate its
system of internal control. To maintain independence, they present their reports
directly to the Board of Directors or to Top Management. They provide
functional operation to the concern. Internal auditors are employees of the
company so that they can easily find out the frauds and any mishappening.

External Auditors:
Are independent staffs assigned by an auditing firm to assess and
evaluate financial statements of their clients or to perform other agreed upon
evaluations.

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What is Chartered Accountant?

Chartered Accountant:

Becoming a CA involves practical business training second to none


and results in a prestigious qualification. After completing their training, young
C.A.s can go on to build successful careers either within the profession itself or
outside it in senior management in the worlds of industry, commerce or financial
services.

What Do Chartered Accountants Do?

Chartered Accountants are to be found at the heart of nearly all


successful organizations. Their primary role is to evaluate the financial
implications of key decisions and to ensure effective financial management.
From that vantage point, they are in a unique position to advance their careers.
Today’s C.A.’s are expected to give advice to their clients and employers on all
aspects of business and to play a key role in information management. They
become involved in such diverse areas as raising capital, financial planning,
management information systems, taxation and marketing.

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Major Audit Firms In Lahore

A.F. FERGUSON & CO. AAMIR RAZA & ASSOCIATES


506-509,Alfalah Building,Shahrah- 10-F,Fatima Centre 14/A-,Queens
e-Quaid-e-Azam Lahore Road Lahore
Tel: 92 42- 36285085, 36285078 Tel: 92 42- 36366009, 36366008
Fax : 92 42- 36285088

A.S. SHEIKGH & CO. AFTAB NABI & CO.


Suit #40,3rd Floor,Land Mark 25,Al-Shajar,Chowk Nila Gumbad
Plaza,Jail Road Lahore Lahore
Tel: 92 42- 35710523, 35710524 Tel: 92 42- 37358804, 37357750
Fax : 92 42- 35711188 Fax : 92 42- 37358704

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Mian Naim Asif
Rashid & Co.
(Chartered Accountants)

(1982)
History:
Mian Naim Asif Rashid & co is one of the oldest Audit firm in
Lahore engaged in the business of auditing, Taxation, Account maintenance as
well as it is contributing in the field of audit and accounts by encouraging their
trainees and making them perfect in their related field of audit and accounts.
The origins of Mian Naim Asif Rashid & co. Chartered
Accountants. Stretch back as far as 1982 and, through successful growth, the
firm today is in a strong and independent practice. The principle Mr. Mian Naim
is a Chartered Accountant and has registered himself as “FCA” in Institute of
Chartered accountants of Pakistan. As one of the leading accounting practicee in
Pakistan in term of clients, staff and annual turnover, Mian Naim Asif Rashid &
co. Chartered Accountants is well placed to offer a high quality service and wide
range of expertise.

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Mian Naim Asif Rashid & co. Chartered Accountants the member
of ICAP in Pakistan is one of the country’s leading professional services
firms. With Clients located across the Pakistan, Mian Naim Asif Rashid & co.
Chartered Accountants provides Services for,
At this time the firm is not allowed for the audit of listed
companies because the firm is not achieved QCR (Quality Control Review). The
firm now applying for QCR (Quality Control Review) and after achieving QCR the
Mian Naim Asif Rashid & co firm will be able for performing the Audit of listed
companies.
Quality Control Review is the process issued by ICAP for quality
audit. It means the firm which is QCR qualified they show the quality of the firm
audit is awesome. The basic objective of QCR is to establish policies and
procedures for the QCR program that ensures that firms carry out audits in
accordance with the professional standards adopted by the Institute.

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List of Clients

➢ Lahore College of the Educators (Private) Limited

➢ Taj Flour Mills Bahawalpur (Private) Limited

➢ Esa Khail Textile (Private) Limited


➢ Shabbir Chicks (Private) Limited

➢ Metal Packages (Private) Limited


➢ Shabbir Edible Oil & Feed Mills (Private) Limited

➢ Khalid Modern Industries (Private) Limited

➢ Sharif Fabrics (Private) Limited


➢ Polo Club of Lahore
➢ ABCO Technical (Private) Limited
➢ Shadab Industries (Private) Limited

➢ Taj Ghee Mills (Private) Limited


➢ S & S Home Textile Exports (Private) Limited

➢ Husnain Industries(Private) Limited

➢ Lahore Race Club, Lahore

➢ Azad Cotton Factory (Private) Limited

➢ Ahmad Khan Flour Mills (Private) Limited

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Services

We are one of the leading providers of audit, risk advisory, tax and
financial advisory services in Pakistan. With a global approach to service delivery,
we respond to clients' complex business challenges with consistent
methodologies and common tools to provide services across industry sectors
and national boundaries.

The financial statements Audit and the integrity and quality of


our audit opinion is the cornerstone of audit services. Our audit focuses on
business issues and the matters that can impact on the financial statements,
whilst also retaining the basic audit procedures that test the information
contained in the financial statements.

Our Risk Advisory Services recognize that managing risk to


strengthen your business is a key to success

Our Tax Services are focused on finding and leveraging


opportunities to help clients manage and reduce their tax burden. We are able
to develop and deliver strategies for specific business issues in which tax is
incorporated into the overall business strategy and your decision-making
process.

Our Financial Advisory Services can provide valuable insights into


how companies can grow and enhance their shareholder value, and comprise of
Corporate Finance, Transaction Services, Restructuring and Forensic.

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Types of Services:

Audit
• External Audits
• Special Audits
• Statutory Audits
• Internal Audits
• Income Tax Audits

Risk Advisory Services

• Human Capital

• Internal Audit

• Investment Advisory Services

• Outsourcing

Tax
• Corporate Taxation

• Personal Taxation

• Indirect Taxes

• Trade and Customs

Financial Advisory Services

Corporate Finance

Restructuring

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Audit
MIAN NAIM ASIF RASHID & CO CHARTERED ACCOUNTANT’S Audit
practice helps organizations and individuals achieve their objectives and succeed
in the new economy through measuring performance, managing risks, and
leveraging knowledge. Our proprietary software tools and knowledge-based
applications bring the power of knowledge to your audit. Our professionals are
equipped with comprehensive information on industry trends and the business
issues that increase risk to your organization.
We staff each engagement team with professionals who possess
the knowledge, skills, time and experience to perform the engagement. Our
ability to deliver a quality audit depends on our team's strong understanding of
the business processes, accounting policies, internal controls, and financial
reporting issues specific to your industry and your organization. Our engagement
teams include industry-experienced audit professionals and subject matter
professionals who can actively participate in areas requiring special knowledge,
skills, or tools.
MIAN NAIM ASIF RASHID & CO CHARTERED ACCOUNTANTS Audit Methodology
guides our professionals in delivering rigorous audits of your financial
statements.
The audit methodology is designed to meet applicable national
and international standards. The audit methodology also emphasizes the critical
nature of substantive procedures and effective risk assessment and control
testing activities.

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Risk Advisory Services
Advisory services include:
In Pakistan, our consulting practice offers a broad suite of services and solutions
including:
• Human Capital
• Internal Audit
• Investment Advisory Services
• Outsourcing
• Human Capital

Our Human Capital:


Professionals are far more than just HR consultants — they are
broad-based business consultants who specialize in integrating people issues
with business strategy. We have the depth and breadth to assist with large-scale
change in ownership and ERP installations, as well as singular program designs.
By developing new tools and methodologies, our can assist your organization’s
performance, productivity and profitability.
Internal audit has changed dramatically in recent
years, evolving from a traditional auditing role, with a charter of protecting
enterprise value, to that of an internal consultant, with increasing organization
wide pressure to enhance shareholder value.
Our internal audit professionals take a risk-based approach to internal audit to
help clients improve performance and operating efficiency. We work closely and
collaboratively with our clients, providing the full range of services-such as
helping to design a strategic plan for internal audit, reengineering existing
departments, providing specialized resources, or completely outsourcing the
entire internal audit function.

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Our Services Include:
• Complete or partial outsourcing (co-sourcing) of internal audit
departments
• Review and restructuring of internal audit department
• Designing the charter for the Audit Committee and Internal Audit
Department
• Developing risk based internal audit approach based on guidelines
issued by Basel
• Designing detailed audit programs and checklists covering banking
risks.

Investment Advisory Services


What to Advise?

Our Investment Advisory Service professionals specialize in


identifying risks arising from regulation, competition and macro economic forces
and designing strategies to manage it to your advantage. Our range of services
includes:

Advice on analyzing investment prospects and mode of doing


business in Pakistan including advising on the form of legal entity, incorporation,
obtaining of necessary permissions and help in dealing with local regulators.

Methods:

Appraisal through NPV, IRR, Payback and DCF analysis including


cost assessment and revenue projections

• Sensitivity analysis

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Financial Advisory Services

What the Query is?

Corporate Finance services include advice on financing, mergers


and acquisitions to quoted, publicly unlisted, and private limited companies in
the private and public sectors; divestitures; structured and project financing;
leveraged buy-outs; initial public offerings; privatization; and valuations.

Our Financial Advisory Services [FAS] network comprises:

• Restructuring

• Transaction Services

• Forensic Services

• Mergers, acquisitions and disposals

• Valuations and fairness opinions

• Structured and project financing

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Our Services Include:
• Corporate and individual tax planning
• Compliance services including preparation of income tax and sales
tax returns
• Representing clients before tax authorities and assisting legal
counsel in preparing appeals to the higher courts
• International Tax Consultancy including tax on international
transactions and advising on double taxation treaties
• Assisting with sales tax matters including registration, de-
registration and assessment
• Establishing gratuity funds, provident funds and other employees
benefit schemes and their approval from tax authorities
• Providing general tax advice based on current and evolving laws
and rulings.

Expanding the Exposure:


The network of professionals can provide member firm clients
with strategies at national or global or regional level that can help reduce their
exposure to a range of indirect taxes, as well as advising on cost control through
improved administrative efficiency and compliance. Many types of businesses
are exposed to indirect taxes, such as sales tax and excise duty, which can affect
their competitiveness.

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Learning Insight:

What done?

I started my internship in Mian Naim Asif Rashid & co of


Chartered Accountants with my keen interest and consent. My stay during
working there last for 6 weeks. I found Mian Naim Asif Rashid & co a quite
learning organization which enables its trainees not only how to apply the
bookish knowledge into practical field but it also helps them to realize and
understand the professional work and attitude. I am grateful to the organization
that helps me in applying my knowledge and skills.

Not only that I also learnt how to make your own space in the
organization and how to capture the people.

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Works Involvement:

I remained involved in almost all type of services which are


performed by the fir. And the activities closely related to me were:

1. Vouching
• Tech Housing Society
• Lahore Race Club
2. Annual Stock taking and Cutoff procedures of the Client

Companies

• Curatech Pharma (pvt) Limited

3. Verification

• Tech Society
• Tasha Trust

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Vouching:

Vouching is a process of verifying the underlying entries recorded


in the books of accounts and this is the first step in any audit. Here all the entries
are passed in the voucher first and then these are transferred to the Journal,
Ledger, and finally in the Profit and Loss Accounts in the end of the period for
which the report is to be generated. Every voucher contains the debit and credit
of the underlying entry and after wards, the entry is sent to proper books.
I was involved in vouching of these firms:-
• Tech Housing Society
• Lahore Race Club

Annual Stock Taking and Cutoff Procedures of the Client Companies

As I have joined the organization where the audit work was going
to start the very first step in audit is to check the physical appearances of stock
and all things related to audit. For this purpose teams were formed and assigned
them the organizations. Different types of documents are used for stock taking
which are in appendix.
I with my senior member Mr. Abdul Mannan was to visit the firm:-
• Curatech Pharma Pvt. Ltd.

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Necessary Documents:

And we also collect different photocopies of different necessary


documents and signed and stamped from the authorized staff.

• The Detail of these Photocopies are:


• The last gate inward pass
• The last gate outward pass
• The last voucher of General voucher
• The last purchase order
• The cash in hand
• Name and address of legal advisor and tax consultant.
• The last voucher of Cash receipt
• The last voucher of Bank receipt
• The last voucher of Bank payment

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Work on TECH

Tech Housing Society


Requirements
For the Audit Year Ended June 30, 2015

Planning and Finalization Stage


Serial
Particular Status
No.
Walk Trough Test:
• Purchase
1
• Expense
• Cash & Bank Payments
AGM
6
Audit Committee List of Members:
7 • Reporting Procedure
• Responsibilities
8 Representation Letter
11 List of Related Parties

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Tech Housing Society
Requirements
For the Audit Year Ended June 30, 2015

Profit & Loss


Serial No. Particular Status
Telephone Bills:
1
• Mobile & Telephone Bills evidences
2 Detail of Director Remuneration
Fees & Subscription
3
• Ledger Copies
Legal Expense:
4
• Ledger Copies
Donation evidences
9

Verification
Every kind of supporting document is attached to the voucher and
then the vouchers are put back in any file where these can easily and readily be
traced out.
While vouching, we are supposed to verify that all the entries are
properly verified.
And many more.
In my visit to Tech Society I have verified certain vouchers related
to Expenditures, etc. and I have also verified the tax payments, vouchers of inter
SES in connection to direct tax deductions.

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Issues in Accounts

01. The following heads are yet to be finalized.


Note No.5, 8, 9, 10, 11, 12, 15, 16 and 18.
02. Note No. 16 is Nil whereas 16.1 and 16.2 as figures.
03. Note No. 18 Head Tech Club is yet to be incorporated.
04. Note No. 19 Contingencies and commitments to be updated.
05. Note No. 23, Prior year adjustments to be incorporated, if any.
06. Accumulated depreciation is brought forward is yet to be
reconciled.
07. Cash flow statement is to be updated.
08. Changes in equity is to be amended.
09. Notes to Accounts is to be read.
10. Note No.5 Capital work in progress is to be updated and to be
changed.
11. Special Note: Member vise detail of all reserve funds is to be
obtained and put in files
12. TDR interest accrued to be verified.
13. Note No.12.2 Welfare Fund is to be rechecked.

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My Observations:

Through out my working time I learnt about how to file


the return, how to refund the return, direct tax deductions, tax on supplies
ignorable, walk through tests, verification technique, stock taking procedure and
the most important but quite new for me the method of counting the stock.
During my visit to Curatech Pharma Pvt Ltd I checked out how to work and keep
a close check on sub ordinates. In short the firm give me the real opportunity to
learn something.

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Some Pictures Affecting the Performance:

During my stay in Mian Naim Asif Rashid & co chartered


Accountants I have very good time. I have learnt much about the professional
field. The whole of the staff is very cooperative. They make me learn more and
more. The plus points of the organization are :-
• Rules and regulation for all.
• Comfortable environment.
In spite of all these facts some are the dark sides of the picture.
• Strict rules irritating the worker
• Rude behavior.
• Lack of communication between upper and lower management.
• No proper attention on complaints.

These all things are frustrating the employees and affecting their
performance which is ultimately go against the organization goals.
Being a part of the organization part I would like to recommend
some suggestion which in my opinion is helpful in solving problems and
increasing the efficiency of the employees.

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To whom it may be concerned:

I have completed my internship in Mian Naim Asif Rashid & co


chartered Accountant. I work truly for my experience and in the real sense in the
benefit of the organization. All people in the organization were very cooperative
and they make me learn more and more about the audit and accounts.

During my stay there I worked under many people i.e. Principal


and other CA and ACCA students. You may concern

Mr. Mian Naim Principal

Mr. Misbah Audit Supervisor

Miss. Rabia Audit Supervisor

Mr. Faisal ICMAP Student


Mr. Shahid CA Student

I have also take help from internet for my guideline and learning purpose,

http://www.charteredaccountants.com.
http://www.fbr.com
http://www.icap.com.pk

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SIGNIFICANT AUDIT TICKS

Sr # DESCRIPTION AUDIT TICKS

1 Opening Balances B 000.00


2 Closing Balances 000.00 B
3 Vouching 000.00

4 Posting 000.00
5 Casting 000.00
6 Cross Casting 000.00
7 Calculation 000.00
8 Carried Forward 000.00 C/F
9 Brought Forward B/F 000.00
Reconciliation ( Bank Book and Bank
10 000.00
Statement)
Subsequent Clearance ( Bank Book and Bank
11 000.00
Statement)
12 Confirmation Sent ( Banks, Debtors, Creditors ) C.S 000.00
Confirmation Obtained ( Banks, Debtors,
13 000.C00
Creditors )
*
Use green pencil for
1 ticking
Use red pencil for
2 referencing
Use black pencil for lines and comparative
3 figures
4 Use blue pencil for current year figures

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