CLIENT NAME

DOCUMENT NAME Risk & Response

PERIOD END
DOCUMENT #

Instructions:
As per requirements of revised audit methodology, Engagement Team shall document those audit procedures which will address risk identified and assessed by the Engagement
team in addition to Supplemental Substantive Procedures (SSP's). Accordingly, engagement teams should ensure that they appropriately update the working paper to clearly
demonstrate risks identified and work performed to address such risks. Also ensure appropriate cross referencing is done in working paper.

Risk No. in APT Risks Description RMM Level FSA Assertions OSP / TOCAudit Response to WP/ Tab Reference
address identified risks
Significant/ Elevated/ Moderate/ Low/ No RMM

Conclusion:

M S K A & Associates/ M S K C & Associates

V.1.2024
Chartered Accountants
CLIENT NAME
DOCUMENT NAME Evaluate Control
PERIOD END
DOCUMENT #

Instructions:
As per requirements of revised audit methodology, Engagement Team shall document those audit procedures which will address risk identified and assessed by the Engagement
team in addition to Supplemental Substantive Procedures (SSP's). Accordingly, engagement teams should ensure that they appropriately update the working paper to clearly
demonstrate risks identified and work performed to address such risks. Also ensure appropriate cross referencing is done in working paper.

IMPORTANT - CONTROL NEED TO BE ADDED AND TESTED AGAINST EACH ASSERTION FOR WHICH RISK IS IDENTIFIED

CARA No. in APT CARA Description Control Risk Level Audit Response to address identified WP/ Tab Reference
risks (TOC)
Maximum/ High/ Moderate/ Low

Conclusion:

M S K A & Associates/ M S K C & Associates

V.1.2024
Chartered Accountants
CLIENT NAME
DOCUMENT NAME Overview of work performed
PERIOD END
DOCUMENT #

IMPORTANT NOTE:
1. PROCEDURES THAT ARE PLANNED AND PERFORMED IN THE TOC AND OSP SECTION OF THESE WORKING PAPERS SHOULD BE CONSISTENT WITH THE PROCEDURES PLANNED IN AUDIT
STRATEGY SECTION OF THE APT FILE AT THE STAGE OF PLANNING AND DOCUMENTED IN THE EXECUTION STAGE OF APT.
2. TOC AND OSP DOCUMENTED IN THE WORKING PAPER SHALL BE ALIGNED WITH THE APT.

Instructions:
As per requirements of revised audit methodology, Engagement Team shall document those audit procedures which will address risk identified and assessed by the Engagement team in addition to Supplemental
Substantive Procedures (SSP's). Accordingly, engagement teams should ensure that they appropriately update the working paper to clearly demonstrate risks identified and work performed to address such risks.
Also ensure appropriate cross referencing is done in working paper.

Index Summary of work performed Reference CARA and OSP Reference from APET Response
TOC

1 ADD TESTING OF RELEVANT CONTROLS CARA 1'!A1 CARA 1

2 ADD TESTING OF RELEVANT CONTROLS TO BE ADDED BY ET CARA 2
3 TO BE ADDED BY ET TO BE ADDED BY ET CARA …

OSP

1 Prepared the lead sheet and agreed the current year numbers from the trial Lead Schedule'!A1
balance to the lead sheet and also verified prior year numbers with the signed
financial statements
2 Performed the analytical review of differences vis a vis previous years and obtained Variance Analysis'!A1
reasons for significant variations which were further corroborated in substantive Variance - Support working'!A1
testing
3 Reconciled Inventory amount as per inventory report with general ledger Reconciliation with Ledger'!A1
evidencing the completeness of inventory.

4 Obtained sufficient appropriate audit evidence about the completeness of the Qty Reco - RM'!A1
5 quantity of inventory of various types (Raw Material, Finished Goods, WIP, Qty Reco - FG'!A1
6 Consumables etc.) outstanding at year end. Qty Reco - Traded'!A1
7 Qty Reco -WIP, Stores etc.'!A1
8 Obtained and verified supporting documents evidencing the appropriateness of cost Cost of Inventory'!A1
of Raw materials.
9 Verified the nature, basis of allocation and amount of overhead expense for Overhead Allocation'!A1
determination of Cost of Inventory.
10 Obtained and verified supporting documents evidencing the appropriateness of FG Valuation'!A1
valuation of Finished Goods.
11 Obtained and verified supporting documents evidencing the appropriateness of WIP Valuation'!A1
valuation of WIP.
12 Obtained sufficient appropriate audit evidence to verify the components of costs BOM Testing'!A1
taken in FG and WIP by verifying cost records (such as bills of material, product or
job cost summaries, etc.
13 Obtained sufficient appropriate audit evidence to test the NRV NRV Testing'!A1
14 Evaluated and Documented the need for a provision for inventory. Provision!A1
15 Obtained and verified supporting documents evidencing the accuracy and Inventory Ageing'!A1
completeness of Inventory ageing as of the balance sheet date.
16 Obtained and verified supporting documents evidencing the complteness and Roll Back,Forward'!A1
accuracy of inventory rolled backed or rolled forward to year-end when the
inventory count is performed at a date other than year end date.
17 Obtained and verified supporting documents evidencing the correctness of Cut off Testing'!A1
accounting period in which the inventory is recognised.
18 Obtained and verified the supporting documents evidencing the completeness, Inventory Confirmation Tracker'!A1
existence and accuracy of the Inventory lying with third party as of the balance
sheet date.
19 Verified CARO compliance with respect to physical verification of inventory Physical verification-Mgmt'!A1
20 Conducted physical verification of inventory on sample basis to obtain sufficient Refer "Annexures to Physical Inventory Count Observation Checklist" attached XX in APT
appropriate audit evidence over existence of inventory and reconciled the inventory
as per physical verification and as per books.
21 Reconciled the information of stock as per books of account and those as per stock Comparison with Stock Statement'!A1
statements submitted to bank.
22 Verified compliance with reporting requirements in CARO report with regard to: CARO Compliance'!A1
1. Conducting physical verification of inventories
2. Submission of statements to Banks/ Financial Institutions for working capital
limits

23 Add/ Modify as per professional judgement of ET

Conclusion:

M S K A & Associates/ M S K C & Associates

V.1.2024
Chartered Accountants
CLIENT NAME
DOCUMENT NAME Testing of Controls
PERIOD END
DOCUMENT #

IMPORTANT NOTE:
Engagement teams are encouraged to follow this template (detailed documentation mentioned here for reference example. The same level of
documentation should be maintained for each controls tested (CARA) for TOC.

Control/ CARA Number

CARA Description

Control Owner

Control Risk Level

What does control owner do to

execute control?

What is the criteria used by the

control owner to identify
deviations requiring
investigation (i.e., what triggers
the control owner to ask a
question)?
What actions occur to investigate
and resolve the identified
deviations?

What, if any, is the level to which

the control is disaggregated?

What are the important

characteristics of the control?

What are the key sources of

information used in the control?

For each of the key sources of

information produced by the
entity, what is the nature of the
information and the company's
controls over the completeness
and accuracy of such
information?

M S K A & Associates/ M S K C & Associates

V.1.2024
Chartered Accountants
How did the audit team test the
controls over the key sources of
information produced by the
entity used in the control?

What tests will be performed

over the important
characteristics of the control?

Through what date was the

testing performed

Frequency of Control

Estimated population of control

instances:

Number of Samples as per TOC

Calculator

Planned reliance on control for

financial statement audit?

Testing of Operating Effectiveness

Contract Approval
A B C D E
Commenc Test Test Test Test TCV (As per contract Name of Authorized
Customer Control Test
Sr. No. ement Attribute Attribute Attribute Attribute Test Attribute 5 checklist) (INR in Signatory and
Name Passed?
Date 1 2 3 4 '000s) Designation
1
2
3…

Tick marks explanations:

A
B

D
E

Contract Register
J K L
Commenc Test Test
Customer ACV (GBP
Sr. No. ement End Date Attribute Attribute Test Attribute 3 Control Test Passed?
Name in '000s)
Date 1 2

Tick marks explanations:

J

M S K A & Associates/ M S K C & Associates

V.1.2024
Chartered Accountants
 K

Testing Conclusion

Were there any testing exceptions noted?

If yes, reference to the item number on the

Summary of Control Deficiencies

Is the period of time adequate, even for

controls remediated during the year, to
determine whether the controls necessary
for achieving the objectives of the control
criteria are operating effectively?

Based on the testing performed above, is

the control operating effectively?

M S K A & Associates/ M S K C & Associates

V.1.2024
Chartered Accountants
Remarks

M S K A & Associates/ M S K C & Associates

V.1.2024
Chartered Accountants
CLIENT NAME
DOCUMENT NAME Groupings
PERIOD END
DOCUMENT #

Guidance:
1. Columns herein are illustrative in nature, audit team may add or delete columns, if required.
2.'Account Code' - Applicable to clients which operates in an ERP computer environment.

Illustrative Legends:
a Traced to the financial statements as on March 31, 20XX
f Traced to the previous year signed financial statements

Account code Description Current Year Previous Notes in the Audit Procedure /
Amount Year amount Financial Working Paper
Statements Reference

a f

Conclusion:

M S K A & Associates/ M S K C & Associates

V.1.2024
Chartered Accountants
CLIENT NAME
DOCUMENT NAME Lead Schedule
PERIOD END
DOCUMENT #

Objective:
To agree the current year numbers from the trial balance to the lead sheet and also verify prior year numbers with the signed financial statements and
ensure disclosure as per requirements of Ind AS 2 - "Inventories" and Schedule III to the Companies Act, 2013.

Work Done:(OSP Procedures and Results to be well incorporated in APT as well)

1. Prepared the lead sheet and agreed to the current year trial balance.
2. Verified the previous year figures from the signed financial statements.
3. Ensure disclosure requirements as per requirements of Ind AS 2 and Schedule III to the Companies Act, 2013.
4. Add/ Modify as per professional judgement of ET

Illustrative Legends:
a Traced to the financial statements as on March 31, 20XX
f Traced to the previous year signed financial statements

Accounting Policy: (REPRODUCE AS PER FINANCIAL STATEMENTS)

Note XX (Give Note Reference and reproduce Note from Final Financial Statements)

Inventories * 20XX-XX 20XX-XX

Raw material (At cost) - -
Raw material in transit (At cost) - -
Work in progress (At cost) - -
Finished goods (At lower of cost and net realizable value) - -
Finished goods in transit (At lower of cost and net realizable value) - -
Stock in Trade (At lower of cost and net realizable value) - -
Store and spares parts (At cost) - -
Total (Gross) - -
Less:- Provision for Non Moving/ Slow moving/ Obsolete Inventory - -
Total (Net) - -
a f
*Hypothecated as charge against short term-borrowings. Refer note XX.
During the year ended 31 March 20XX, INR XX (31 March 20XX: INR YY) was recognized as expense for inventories recognized at net realizable value.

Note:
1. Goods-in-transit shall be disclosed under the relevant sub-head of
inventories.
2. Mode of valuation for each class of inventories should be disclosed.

Conclusion:

M S K A & Associates/ M S K C & Associates

V.1.2024
Chartered Accountants
CLIENT NAME
DOCUMENT NAMEAnalytical review
PERIOD END
DOCUMENT #

Objective: To inquire and corroborate the reasons for variance between current year amounts and comparative information as per financial statements

Work Done: (OSP Procedures and Results to be well incorporated in APT as well)
1. Classify all the inventory from the trial balance and reconcile it with the financial statements
2. Analyse the variances from the comparative figures and documented the reasons for variances above [Define Threshold in terms of value and % of variances as compared to previous year]
3. Inquire with [Name and Designation of relevant authority] and obtained for reasons for all the significant variances.
4. Corroborate the reasons for significant variances with the underlying documentation obtained during our substantive testing. [ET to document this in detail as relevant and applicable]
5. Add/ Modify as per professional judgement of ET

NOTE
This review does not provide us with any persuasive audit evidence and hence no assurance can be taken from this. The variances noted and explanations obtained are helpful
for understanding and corroborating significant movements and ensuring they have been covered by our audit procedures.

Sr No. Account code Particulars Classification Current Year Previous Variation Detailed Analysis/ Reasons
Amount Year for variance
Amount
Amount %
1 0.00 #DIV/0!
2 0.00 #DIV/0!
3 0.00 #DIV/0!
4 0.00 #DIV/0!
5 0.00 #DIV/0!
6 0.00 #DIV/0!
7 0.00 #DIV/0!
8 0.00 #DIV/0!
9 0.00 #DIV/0!
10 0.00 #DIV/0!
etc. 0.00 #DIV/0!

Conclusion:

M S K A & Associates/ M S K C & Associates

V.1.2024
Chartered Accountants
CLIENT NAME
DOCUMENT NAME Analytical Review
PERIOD END
DOCUMENT #

Guidance:
1.The Audit team may adopt other analytical procedures as applicable to the assignment.
2. List of other ratios which can be used for analysis by the Audit Team:
i) reconciliation of quantities of opening stocks, purchases, production, sales and closing stocks.
ii) comparison of closing stock quantities and amounts and Gross Profit Margin Ratio with those of the previous year.
iii) Comparison of relationship between current year stock quantities and amounts with current years sales and purchases, with corresponding figures of previous year.
iv) comparison of the composition of the closing stock (e.g., raw materials as a percentage of total stocks, work-in-process as a percentage of total stocks) with the
corresponding figures for the previous year.
v) comparison of actual stock, purchase and sales figures with the corresponding budgeted figures, if available.
vi) comparison of yield with the corresponding figure for the previous year.
vii) Other significant ratios relating to inventories with similar ratios for other firms in the industry and with industry norms.

Current Year Previous Year

Particulars
Value Value
Opening Inventory
- Raw Material
- Stores & Spares
- WIP
- FG
- Slow moving items
- Obsolete items

Analysis 1

Current Year Previous Year Current Year Previous Year

Particulars % of Total Stock
Value Value Value % of Total Stock Value
Closing Inventory
- Raw Material #DIV/0! #DIV/0!
- Stores & Spares #DIV/0! #DIV/0!
- WIP #DIV/0! #DIV/0!
- FG #DIV/0! #DIV/0!
- Slow moving items #DIV/0! #DIV/0!
- Obsolete items #DIV/0! #DIV/0!
Total - - #DIV/0! #DIV/0!

Analysis 2
Current Year Previous Year
Particulars
Value Volume Closing rate per Value Volume Closing rate per
Raw Material Consumption unit unit
- Type 1
- Type 2
- Type 3

Current Year Previous Year

Particulars Variance Reasons for variance
Average price per unit Average price per unit

- Type 1
- Type 2
- Type 3

Analysis 3
Current Year Previous Year
Particulars Average Price per Average Price per
Value Volume unit Value Volume unit
Production of Finished Goods
- FG 1
- FG 2
- FG 3

M S K A & Associates/ M S K C & Associates

V.1.2024
Chartered Accountants
 Current Year Previous Year
Particulars Variance Reasons for variance
Average price per unit Average price per unit

- FG 1
- FG 2
- FG 3

M S K A & Associates/ M S K C & Associates

V.1.2024
Chartered Accountants
Illustrative Ratios for Analytical Review
Ratio Formula Industry Standard Current Year Previous Year

Inventory Turnover Cost of Goods Sold / 5 to 6 times XX XX

Average Inventory

Obsolete Inventory Cost of inventory Varies from to Industry to XX

percentage items with no recent Industry
usage / XX
Total
Inventory Cost
This formula is used
to determine the
proportion of
inventory that may
require an
obsolescence
reserve. It is a highly
judgmental
calculation, since the
“no recent usage”
part of the
calculation can refer
to any time period
that one may choose.

M S K A & Associates/ M S K C & Associates

V.1.2024
Chartered Accountants
CLIENT NAME
DOCUMENT NAME Reconciliation of inventory with general ledger
PERIOD END
DOCUMENT #

Objective:
To obtain sufficient appropriate audit evidence about the completeness of the inventory.

Work Done:
1. Obtain reconciliation of detailed listing/ report of inventory* with ledger
2. Check arithmetic accuracy of the reconciliation
3. Trace adjustments to appropriate entries in general ledger
4. Agree significant reconciling items to supporting documentation/client explanations, corroborating explanations received
5. Add/ Modify as per professional judgement of ET

*ET to obtain clearance from ITRA team in case reliance is being placed upon any report generated from system and perform IPE testing.

Amount as per
Account Type of Inventory listing/ Reference to testing of
Account code Description inventory Amount report Difference Reasons reconciling items
[pivot from below
listing]

As provided by client
Material Code Material DescriptioLocation Rack ReferenceMeasurement Unit Classification/ Type pf Quantity Cost per unit Total Value

Total - -

Conclusion:

M S K A & Associates/ M S K C & Associates

V.1.2024
Chartered Accountants
CLIENT NAME
DOCUMENT NAME Quantity Reconciliation - Raw Material
PERIOD END
DOCUMENT #

Objective:
To obtain sufficient appropriate audit evidence about the completeness of the quantity outstanding at year end.

Work Done:
1. Obtain quantity reconciliation/ movement from client
2. Ensure accuracy of reconciliation/ movement by tracing the respective figures with other data/ information received as per legend defined below
3. Inquire and corroborate reasons for differences, if any
4. Add/ Modify as per professional judgement of ET.

Illustrative Legends:
d Traced to previous year valuation working
l Traced to purchase register, also refer "Purchases WP" [ADD APT Reference]
f Traced to the consumption listing, also refer "COGS WP" [ADD APT Reference]
l Traced to current year valuation working/ system report etc.*
a Recomputed

*ET to obtain clearance from ITRA team in case reliance is being placed upon any report generated from system and perform IPE testing.

Per Inventory Listing/ As provided by client Quantity Value

Component Component Location Measurement Opening Purchase Consumption Closing Closing Opening Purchase Consumptio Closing Value Per unit
Code Description Unit (Qty) (value) n (Recomput (As per valuation
ed) working)

d l f a l
0

Total - - - - - - -
As per Current year financial statement
Difference

Conclusion:

M S K A & Associates/ M S K C & Associates

V.1.2024
Chartered Accountants
Value
Total Value Difference Difference Remarks
(Qty) (Value)

a
- - -

-
-
-

M S K A & Associates/ M S K C & Associates

V.1.2024
Chartered Accountants
CLIENT NAME
DOCUMENT NAME Quantity Reconciliation - Finished Goods
PERIOD END
DOCUMENT #

Objective:
To obtain sufficient appropriate audit evidence about the completeness of the quantity outstanding at year end.

Work Done:
1. Obtain quantity reconciliation/ movement from client
2. Ensure accuracy of reconciliation/ movement by tracing the respective figures with other data/ information received as per legend defined below
3. Inquire and corroborate reasons for differences, if any
4. Add/ Modify as per professional judgement of ET.

Illustrative Legends:
d Traced to previous year valuation working
l Traced to input output working/ system report* etc. [Add APT Reference]
f Traced to the sale register, also refer "Revenue WP" [Add APT Reference]
l Traced to current year valuation working/ system report* etc.
a Recomputed

*ET to obtain clearance from ITRA team in case reliance is being placed upon any report generated from system and perform IPE testing.

Per Inventory Listing/ As provided by client Quantity Value

Material Code Material Location Measurement Opening Production Sale Closing Closing Opening Production Sale Closing Value Per unit Total Value Difference Difference
Description Unit (Qty) (value) (Recomput (As per valuation (Qty) (Value)
ed) working)

d l f a l a
0 - - -

Total - - - - - - - -
As per Current year financial statemen -
Difference -

Conclusion:

M S K A & Associates/ M S K C & Associates

V.1.2024
Chartered Accountants
 Remarks

M S K A & Associates/ M S K C & Associates

V.1.2024
Chartered Accountants
CLIENT NAME
DOCUMENT NAME Quantity Reconciliation- Traded Inventory/ Stock in Trade
PERIOD END
DOCUMENT #

Objective:
To obtain sufficient appropriate audit evidence about the completeness of the quantity outstanding at year end.

Work Done:
1. Obtain quantity reconciliation/ movement from client
2. Ensure accuracy of reconciliation/ movement by tracing the respective figures with other data/ information received as per legend defined below
3. Inquire and corroborate reasons for differences, if any
4. Add/ Modify as per professional judgement of ET.

Illustrative Legends:
d Traced to previous year valuation working
l Traced to purchase register, also refer "Purchases WP" [ADD APT Reference]
f Traced to the sale register, also refer "Revenue WP" [Add APT Reference]
l Traced to current year valuation working/ system report* etc.
a Recomputed

*ET to obtain clearance from ITRA team in case reliance is being placed upon any report generated from system and perform IPE testing.

Per Inventory Listing/ As provided by client Quantity Value

Material Code Material Location Measure Opening Purchase Sale Closing Closing Opening Purchase Sale Closing Value Per unit Total Value
Description ment (Qty) (value) (Recomput (As per valuation
Unit ed) working)

d l f a l a
0 -

Total - - - - - - - -
As per Current year financial statement -
Difference -

Conclusion:

M S K A & Associates/ M S K C & Associates

V.1.2024
Chartered Accountants
 Difference Difference Remarks
(Qty) (Value)

- -

M S K A & Associates/ M S K C & Associates

V.1.2024
Chartered Accountants
CLIENT NAME
DOCUMENT NAME Quantity Reconciliation- WIP and Store and spares parts
PERIOD END
DOCUMENT #

Objective:
To obtain sufficient appropriate audit evidence about the completeness of the quantity outstanding at year end.

Work Done:
1. Obtain quantity reconciliation/ movement from client.
2. Ensure accuracy of reconciliation/ movement by tracing the respective figures with other data/ information received as per legend defined below.
3. Inquire and corroborate reasons for differences, if any.
4. Add/ Modify as per professional judgement of ET.

ET to document testing of quantity reconciliation of WIP, Stores and Spares or any other specific category as applicable
Difference

Conclusion:

M S K A & Associates/ M S K C & Associates

V.1.2024
Chartered Accountants
 #REF!

M S K A & Associates/ M S K C & Associates

V.1.2024
Chartered Accountants
CLIENT NAME
DOCUMENT NAME Cost of Inventory - Raw Material
PERIOD END
DOCUMENT #

Objective:
To verify the inventories are carried at an appropriate value in the financial statements in accordance with the Ind AS 2. Verification of
appropriate cost ascertained for valuation.

Work Done:
1. Obtain a priced out raw materials list showing total quantities, cost and unit cost per item
2. Test the mathematical accuracy of the schedule and ensure that the totals reconcile to the general ledger and the quantities reconcile
with the related quantity summaries tested during the physical observation procedures performed (if performed at year end).
3. Select sample of inventory items from the final inventory listing to test.
4. Apply OSP calculator on the total population. Refer "[Add APT Reference where OSP Calculator is attached]"
5. Use "Idea Software" to select the samples to be tested based on the computed sample size.
6. For each of the items selected in point trace the quantity, unit price and value of closing stock as per the client's inventory systems. Also
refer "Purchase WP" attached in APT.
7. Identify relevant purchases with respect to inventory items selected for valuation.
8. Obtain supplier invoices and supporting receiving slips for the inventory items selected, ensuring coverage of inventory on hand for each
selected inventory item.
9. Trace the quantity, purchase price, taxes & duties (not recoverable) from the supplier invoices & supporting.
10. Basis relevant purchase, calculate value of closing stock as per cost method adopted by the client (FIFO / Weighted Average Cost).
11. Ensure costs include freight- or carriage-in costs, duties, taxes, and any discounts/vendor rebates. Where applied, separately test
accumulation/allocation of charges to raw materials if material. Consider impact of exchange rates where goods are purchased
internationally.
12. Determine correct inventory costs have been recorded using the appropriate costing method.
13. Add/ Modify as per professional judgement of ET.

THIS IS FOR ILLUSTRATION PURPOSE ONLY

Costing Method: FIFO

As per Inventory Listing As per Engagement Team

Material Code Material Description Total Unit Cost per Total Supplier Vendor Invoice Date Purchased Unit Duty, Rebate/ Extende Quantity Closing Stock Closing Stock Error Remark
Inventory Client Listing Inventory Name Invoice # Date Received Units Price Tax, & Trade d Remaining (FIFO) (Weighted s
Quantity (A) Value Shippin Discoun Invoice Average)
g ts Cost

A … 100 10 1000 XYZ Ltd. 1112 3/10/2023 3/10/2023 60 10 0 0 600 60

30 11 0 0 330 30
20 12 0 0 240 10
110 1170 100 1050 0 50

0 0
0
0
0 0 0 0 0 0

0 0
0
0
0 0 0 0 0 0

0 0
0
0
0 0 0 0 0 0

0 0
0
0
0 0 0 0 0 0

0 0
0
0

M S K A & Associates/ M S K C & Associates

V.1.2024
Chartered Accountants
 0 0 0 0 0 0

0 0
0
0
0 0 0 0 0 0

0 0
0
0
0 0 0 0 0 0

Total 1000 Total Error 50

Error % 5%
Total Inventory Value
Extrapolated Error 0
Conclusion

M S K A & Associates/ M S K C & Associates

V.1.2024
Chartered Accountants
CLIENT NAME
DOCUMENT NAME Overhead Allocation
PERIOD END
DOCUMENT #

Objective:
To verify the overhead expense are appropriately charged to inventories for determination of Cost of Inventory.

Work Done:
1. Trace all the expenses from Trail Balance.
2. Determine nature of expense and identify if the same is related to production cost of Finished Goods/WIP and requires allocation.
3. Check the amount to be allocated has been correctly identified.
4. Check appropriate basis of allocation has been used.
5. Where standard cost is used or where overheads are charged at standard rates or percentages, examined the variances from actuals and, where these are significant, ensure that
appropriate adjustment is made to the inventories.
6. Determine treatment of overhead expenses as a part of cost of inventories is appropriately done.
7. Add/ Modify as per professional judgement of ET.

S. No. Descriptio Nature of Expense Amount as Allocation Amount to be Amount not Basis of Corroborating the Reason for
n of (Production/ per Trial (Not Allocable/ allocated to to be Allocation basis of allocation partial
Expense Administrative/Selling Balance Fully inventory allocated (How is (Please describe allocation
Expense Allocable/Partially expense and add testing)
Allocable allocated)

1 0

Total 0 0 0

Conclusion:

M S K A & Associates/ M S K C & Associates

V.1.2024
Chartered Accountants
CLIENT NAME
DOCUMENT NAME FG Valuation Testing
PERIOD END
DOCUMENT #

Objective:
To verify the inventories are carried at an appropriate value in the financial statements in accordance with the Ind AS 2. Verification of appropriate
cost ascertained for valuation.

Work Done:
1. Obtain a finished goods list showing total quantities, cost, overheads allocated and total cost per item
2. Test the mathematical accuracy of the schedule and ensure that the totals reconcile to the general ledger and the quantities reconcile with the
related quantity summaries tested during the physical observation procedures performed (if performed at year end).
3. Select sample of inventory items from the final inventory listing to test.
4. Apply OSP calculator on the total population. Refer "[Add APT Reference where OSP Calculator is attached]"
5. Use "Idea Software" to select the samples to be tested based on the computed sample size.
6. For each of the items selected trace suppliers' invoices for raw materials included in the sample. Also refer "Purchase WP" and also "cost of
inventory Tab" attached in APT.
7. Obtain Labour and overhead application schedules to ensure labour and overhead were applied correctly
8. Verify costs included in labour and overhead calculations and assess reasonableness
9. Where standard costs are used, compare standard costs with those for prior year and agree to standard costing calculations/values.
Ensure price variances are properly accounted for under the applicable financial reporting framework

10. Add/ Modify as per professional judgement of ET.

Error % #REF!

ET to document testing of quantity testing of FG as applicable Total Inventory Value

Extrapolated Error #REF!

Conclusion

M S K A & Associates/ M S K C & Associates

V.1.2024
Chartered Accountants
CLIENT NAME
DOCUMENT NAME WIP Valuation Testing
PERIOD END
DOCUMENT #

Objective:
To verify the inventories are carried at an appropriate value in the financial statements in accordance with the Ind AS 2. Verification of appropriate
cost ascertained for valuation.

Work Done:
1. Obtain a WIP list showing total quantities, cost, overheads allocated and total cost per item
2. Test the mathematical accuracy of the schedule and ensure that the totals reconcile to the general ledger and the quantities reconcile with the
related quantity summaries tested during the physical observation procedures performed (if performed at year end).
3. Select sample of inventory items from the final inventory listing to test.
4. Apply OSP calculator on the total population.Refer "[Add APT Reference where OSP Calculator is attached]"
5. Use "Idea Software" to select the samples to be tested based on the computed sample size.
6. Check that cost records (such as bills of material, product or job cost summaries, etc.) from which assigned costs were taken conform to actual
stages of completion observed (or reported) during physical inventory count observation.
7. For WIP costs, select a sample from lists of jobs in progress. Document sample size and selection. Obtain detailed analysis of costs incurred to
date and test to supporting documentation:
a) For materials costs, trace to supplier invoices;
b) For labour costs, trace to wage records; c) Compare overhead rates used to supporting data;
d) Test calculations and arithmetic accuracy of detailed analyses;
e) Determine whether abnormal costs such as scrap and labour inefficiencies have been removed;
f) Determine whether partial shipments have been treated properly.

8. Inquire any differences and corroborate explanations.

9. Add/ Modify as per professional judgement of ET.

Error % #REF!

ET to document testing of quantity testing of FG as applicable Total Inventory Value

Extrapolated Error #REF!

Conclusion

M S K A & Associates/ M S K C & Associates

V.1.2024
Chartered Accountants
CLIENT NAME
DOCUMENT NAME Cost of Inventory
PERIOD END
DOCUMENT #

Objective:
To verify the inventories are carried at an appropriate value in the financial statements in accordance with the Ind AS 2. Verification of appropriate cost ascertained for valuation.

Work Done:
1. Apply OSP calculator on the total population. Refer "[Add APT Reference where OSP Calculator is attached]"
2. Use "Idea Software" to select the samples to be tested based on the computed sample size.
3. For the samples selected, verify the BOM in the system*.
4. Compare quantities and cost as per BOM with valuation working provided by client
5. Add/ Modify as per professional judgement of ET.

*ET to obtain clearance from ITRA team in case reliance is being placed upon any report generated from system and perform IPE testing.

As per BOM Report

Whether to be
Component
S. No. Material Code Material Description Classification Material Unit Component Component description Quantity Cost as per BOM Testingconsidered as BOM
unit
?
1 20XXX11 …... Finished Goods Number YYYY11 …. 1.00 Number
1 YYYY22 …. 2.00 Number
1 YYYY33 …. 4.00 Number
1 YYYY44 …. 0.11 KG
1 YYYY55 …. 0.83 KG

2 20XXX12 …... Finished Goods Number YYYY44 …. 2 KG

2 YYYY66 …. 3 Number
2 YYYY77 …. 1 Number
2
2

Conclusion:

M S K A & Associates/ M S K C & Associates

V.1.2024
Chartered Accountants
As per FG Workpaper

Quantity as per FG/ Cost as per FG

Difference Difference Remarks
WIP Valuation working Valuation working
1.00 -
2.00 -
4.00 -
0.11 -
0.83 -

2.00 -
3.00 -
1.00 -

M S K A & Associates/ M S K C & Associates

V.1.2024
Chartered Accountants
CLIENT NAME
DOCUMENT NAME NRV Testing
PERIOD END
DOCUMENT #

Objective:
To verify the inventories are carried at an appropriate value in the financial statements in accordance with the Ind AS 2 and compare of Cost
ascertained with net realizable value to determine, stock is not carried at value above net realizable value.

Work Done: (OSP Procedures and Results to be well incorporated in APT as well)
1. Obtain NRV working from client and ensure completeness and accuracy of the same.
2. Apply OSP calculator on the total population. Refer "[Add APT Reference where OSP Calculator is attached]"
4. Use "Idea Software" to select the samples to be tested based on the computed sample size.
5. Select sample of inventory items from the final inventory listing to test.
6. For each of the items selected in point (1), trace the quantity, unit price and value of closing stock as per the client's inventory systems.
7. Determine the market value of inventory by verifying the latest sales invoice of the same inventory item sold after the year-end. Also, deduct cost to
sales to arrive at net realizable value.
8. Where above information is not readily attainable, consider following alternatives for approximations of market value:
a. Estimates based on fluctuations of market price or cost of manufacturing similar items;
b. Invoices for new purchases made after the year-end from the original supplier of the inventory item, if sales prices are not available ('replacement cost');
c. Advertised prices on product brochures, also considering possible discounts, costs to complete and sell, and saleability.
9. Determine necessary write-downs or provision by comparing book value of inventory to market value.
10. Assess if management has made appropriate provision against such inventory where realisable value is less than book value
11. Add/ Modify as per professional judgement of ET

Per Inventory Listing As per M S K A/ M S K C Testing

Material Code Material Total Unit Cost per Total Inventory Customer Invoice No. Invoice Invoice Qty Base Taxes Total Unit Sales Price as Estimated Cost to Net
Description Inventory Client Listing Value Name Date Amount Invoice per invoice Sell Realisable
Quantity (A) Amount (Refer Note below) Value
A12 … 100 10 1000 ABC 002 4/4/2023 - 10 1 9
0
0
0
0
0
0
0
0
0
Total 100 1000

Note:
Document how management has determined and ET has verified estimated cost to sell. For example it can be determined through by proportionately allocating the total selling expense (including freight outward) with invoice value or quantity as appropriate.

Conclusion:

M S K A & Associates/ M S K C & Associates

V.1.2024
Chartered Accountants
 Difference Error (A * B)
if NRV <
Cost (B)
1 100
0 0
0 0
0 0
0 0
0 0
0 0
0 0
0 0
0 0
100

quantity as appropriate.

M S K A & Associates/ M S K C & Associates

V.1.2024
Chartered Accountants
CLIENT NAME
DOCUMENT NAME Provision
PERIOD END
DOCUMENT #

Objective: To Consider the need for a provision for inventory

Work Done: (OSP Procedures and Results to be well incorporated in APT as well)
1. Document management’s considerations when evaluating the need for a provision over inventory (lower of cost or net realisable value).
2. Evaluate management’s procedures and conclusion, including considerations of the following (where relevant):
a. Age of inventory
b. Inventory turnover rate including significant changes to turnover in the period or compared to prior period
c. Projected sales forecasts, additions and deletions from sales catalogues, policy changes or other key factors
d. Current, prior period and post period-end gross profit by product type,
e. Product performance, compliance with government regulations
f. Analysis of sales returns and allowances.
3. Also complete and refer "SA 540 Auditing Estimates Workbook"
4. Add/ Modify as per professional judgement of ET

ET Documentation of work done

Conclusion:

M S K A & Associates/ M S K C & Associates

V.1.2024
Chartered Accountants
CLIENT NAME
DOCUMENT NAME Inventory Ageing
PERIOD END
DOCUMENT #

Objective: To obtain audit evidence about the accuracy of Inventory ageing as of the balance sheet date are free of material misstatement.

Work Done: (OSP Procedures and Results to be well incorporated in APT as well)
1. Obtain ageing of closing inventory and test the completeness of the ageing analysis by reconciling the ageing analysis to the inventory listing in total.
2. Check arithmetic accuracy of the Ageing schedule.
3. Verify the accuracy of the ageing by verifying date.
4. Add/ Modify as per professional judgement of ET

Illustrative Legends for tracing:

a Verified accuracy of date from underlying supporting documents
q Recomputed

Ageing Analysis as per books of accounts

Sr No Material Code Material Type of Inventory Quantity Value Per Closing Balance Date Less than 30 Days 30-90 days 90-180 days 180-365 Days
Description RM/ FG/ WIP/ SIT unit
a

1
2
3
4
5
6
7
8
Contd…

Conclusion:

M S K A & Associates/ M S K C & Associates

V.1.2024
Chartered Accountants
per books of accounts Ageing Analysis as per audit team Differe
1-2 years 2 - 3 years More than 3 years Less than 30 Days 30-90 days 90-180 days 180-365 Days 1-2 years 2 - 3 years More than 3 Less than 30 30-90 days
years Days
q q q q q q q

M S K A & Associates/ M S K C & Associates

V.1.2024
Chartered Accountants
 Difference
90-180 days 180-365 Days 1-2 years 2 - 3 years More than 3 years Remarks

M S K A & Associates/ M S K C & Associates

V.1.2024
Chartered Accountants
CLIENT NAME
DOCUMENT NAME Inventory Ageing Analysis
PERIOD END
DOCUMENT #

Objective: To analyse ageing of Inventory as of the balance sheet date

Work Done: (OSP Procedures and Results to be well incorporated in APT as well)
1. Inquire and corroborate reasons for long outstanding inventory balances . Refer below
2. Consider the following:
a) Information noted during the physical observation,
b) Whether the related equipment is still being used in operations,
c) The company's ageing process for the inventory and how the provision is calculated and ensure its consistency with prior periods.

3. Select a sample of items in the analysis and test the movement by reviewing usage activity.
4.Consider the impact of subsequent movement of items selected.
5. Perform assessment to make provision with regard to balances of inventory which have been outstanding for a longer period.
6. Add/ Modify as per professional judgement of ET

Sr No Ageing Material Code Material Type of Inventory Quantity Per unit Total Value Management ET Assessment Subsequent Status Is Provision warranted
Description RM/ FG/ WIP/ SIT value Remarks/ (Sold, written off etc.)
Explanations for
long outstanding
balances

1 Inventory outstanding for XYZ

more than 1-2 years
2 Inventory outstanding for ABC
more than 1-2 years
3….
4 Inventory outstanding for
more than 2-3 years
5 Inventory outstanding for
more than 3 years

Conclusion:

M S K A & Associates/ M S K C & Associates

V.1.2024
Chartered Accountants
 Subsequent Sale
Amount of provision Sale invoice number Sale invoice date Party Name Quantity Value Base Amount Taxes Total Invoice Amount
created

M S K A & Associates/ M S K C & Associates

V.1.2024
Chartered Accountants
 Verified from Bank Statement
Bank Name Cheque Date of Cheque/ Amount Authorised by
No./ Bank Date as per Bank
Reference Statement

M S K A & Associates/ M S K C & Associates

V.1.2024
Chartered Accountants
CLIENT NAME
DOCUMENT NAME Inventory Cost Working
PERIOD END
DOCUMENT #

Objective:
To test the existence and accuracy of inventory rolled forward to year-end when the inventory count is performed at a date prior to the year end date.

Work Done:
1. Obtain the inventory subledger balance prior to the date of the inventory count.
2. Obtain listings of purchases, sales and other adjustments for the intervening roll back/ forward period.
3. Test the reliability of the entity's reports (IPE) used to complete this roll back/ forward working .
4. Test the roll forward / roll back procedures performed by client, the source of information used, and investigate any large/unusual items and unexpected fluctuations in the inventory balance.
5. Verify the transactions during intervening roll back/ forward period.
6. Based on the information collected above, determine the completeness and accuracy of inventory at year end by performing reconciling procedures below.
7. Add/ Modify as per professional judgement of ET

Summary of Roll forward Balances - A34

THIS IS FOR ILLUSTRATION PURPOSES ONLY

Roll forward Dates

Period End Date 31/03/2024

Inventory count date 29/03/2024
# of Days in the Roll forward Period 2

Description Qty Value Notes

Inventory balance at [ Provide reference to the WP of

Balance inventory count date - - [A] physical verification]

Less: subsequent cost of sales

General Journal-ADJ - -
Cost of Sales per Sales Journa - -
Cost of Sales per Sales Journa - -
Extra row - -
Roll forward period cost of sa - - [B]

Add: subsequent purchases

This need to be supported by detailed item
General Journal-ADJ - -
wise working for each type of inventory (FG,
Purchases Journal 1 - - Raw material, WIP, consumables etc.)
Purchases Journal 2 - -
Inventory in transit - -
Extra row - -
Extra row - -
Roll forward period purchases - - [C]

Less: write-offs during the roll forward period - - [D]

Roll forward balance - - [E] = [A] - [B] + [C] - [D]

Adjusted balance at year-end:

Per Roll forward - - [E]
Per General Ledger/ Listing - -

Difference, if any - -

M S K A & Associates/ M S K C & Associates

V.1.2024
Chartered Accountants
Analysis of Variance

Document explanations for any differences between roll forward balance and G/L. Any differences should be corroborated, and if necessary, be adjusted or taken to
the Summary of Misstatements.

Document Testing on IPE Used to Complete Roll forward Procedures

Document audit procedures over the completeness and accuracy of reports from which values in the above reconciliation were obtained.

Conclusion:

M S K A & Associates/ M S K C & Associates

V.1.2024
Chartered Accountants
CLIENT NAME
DOCUMENT NAME Cut off Testing
PERIOD END
DOCUMENT #

Objective:
To ensure the inventory is recognised in the correct accounting period.

Work Done:
1. Obtain MIGO, MIRO, Gate inward and gate outward register etc. [engagement team to insert number based on lead time] for each type of inventory.
2. Verify dispatch notes prior to and subsequent to year-end and ensure that they are accounted for in inventory in the appropriate accounting period.
3. Verify goods received notes prior to and subsequent to year-end and ensure that they are accounted for in inventory in the appropriate accounting period.
4. Add/ Modify as per professional judgement of ET

Gate Inward Testing

As provided by client As per M S K A/ M S K C Testing
S. No. Name of Party MIGO Number MIGO Date Quantity Gate Inward No. Gate Inward Date Quantity as per Invoice Number Invoice Date Party Name
Gate inward

Gate Outward Testing

As provided by client
S. No. Name of Party Sale invoice number Sale invoice date Quantity Value per unit Total Value Taxes Total Sales Value Gate Outward No.Gate Outward Date

ET TO ADD TESTING AS RELEVANT

Conclusion:

M S K A & Associates/ M S K C & Associates

V.1.2024
Chartered Accountants
As per M S K A/ M S K C Testing
Quantity Value per unit Base Amount Taxes Total Amount Period to which Period in Whether
it pertains which it is accounted in
accounted correct period
for

As per M S K A/ M S K C Testing
Quantity Invoice Invoice Date Party Quantity Value per unit Base Amount Taxes Total Sale Period to Period in which Whether
as per Number Name Amount Terms which it it is accounted accounted in
Gate pertains for correct period
Outward

M S K A & Associates/ M S K C & Associates

V.1.2024
Chartered Accountants
CLIENT NAME
DOCUMENT NAME Inventory lying with third party - Confirmation Tracker
PERIOD END
DOCUMENT #

Objective:
To obtain audit evidence about the completeness, existence and accuracy of the Inventory lying with third party as of the balance sheet date are free of material misstatement.

Work Done: (OSP Procedures and Results to be well incorporated in APT as well)
1. Obtain listing of Inventory lying with third party as on year end with quantity and value and ensured completeness of the same.
2. Determine the samples to be verified with direct confirmation based on audit strategy.
3. Circulate direct confirmation (Email/ Post) to the samples selected
4. Independently verify the address/ e-mail id to which confirmation was circulated
5. Reconcile the balance as per books of accounts and balance as confirmed by the party
6. Add/ Modify as per professional judgement of ET

Illustrative Legends:
a Verified from Trial Balance/
Current year financial
statements
f Verified from direct confirmation received

Sr.No. Party Name Relationship Volume of Cost Balance as Volume of Cost Balance as on Difference Reconciling Net Whether a Reconciliation Remarks
with the Inventories Price on March 31, Inventorie Price March 31, 2024 Amount Difference Statement prepared and
Party held by the 2024 as per s as per as per (Attach separate provided by the client
Third Party books of confirmati confirmation sheet as explaining the reasons for
accounts on received required) Variances
a f
1 - - - - -
2 - - - - -
3 - - - - -
4 - - - - -
5 - - - - -
- - - - -

Conclusion:

M S K A & Associates/ M S K C & Associates

V.1.2024
Chartered Accountants
 In case confirmation sent by POST

Direct Confirmation Mode of Name of Concerned Contact Number POD No. POD Date APT Reference of Courier Name Address to which Address verification Reference to Tab
Sent confirmation Person POD confirmation sent performed where Address
(Yes/No) (Email/By post) verification is
performed

M S K A & Associates/ M S K C & Associates

V.1.2024
Chartered Accountants
 In case confirmation sent by E-mail Confirmation Received

Date of Email Sent E-mail Id E-mail id Reference to Tab where E- Domain Testing APT Reference of Direct Confirmation Date of Mode of APT Reference of
verification mail Id verification is email sent Received Confirmation Confirmation Direct confirmation
performed performed (Yes/No) Received received received
(Email/By post)

M S K A & Associates/ M S K C & Associates

V.1.2024
Chartered Accountants
nfirmation Received In case Confirmation not received

Email ID from Alternate Procedures Brief description of Remarks/

confirmation Performed alternate procedure Supporting's/ Working Papers for
received Alternate Procedures Performed

M S K A & Associates/ M S K C & Associates

V.1.2024
Chartered Accountants
CLIENT NAME
DOCUMENT NAMEAddress/ Email -Id Verification
PERIOD END
DOCUMENT #

Objective:
To independently verify the address of the party to whom confirmation is circulated.

Work Done: (OSP Procedures and Results to be well incorporated in APT as well)
1. Obtain the complete address/ E-mail id of the party to whom confirmation is to be circulated from client.
2. Independently verify the address/ E-mail id of the party from appropriate source (such as Website of the Company, web Search etc.)
3. In case confirmation is sent by email, independently verify the domain of the email id to which confirmation is sent.
4. Ensure the address/ email id as verified by us and to which confirmation is sent are consistent.
5. Add/ Modify as per professional judgement of ET

S. No. Party Name Address as As per our Is confirmation sent Any E-mail Id E-mail and Is Is confirmation Any
provided by independent to Correct address exception and Domain Domain as Domain sent to Correct E- exception
client verification as per official s noted as provided per our correct mail ID and Domain s noted
website by client independent as per official
verification website

Party 1 FOR ILLUSTRATION PURPOSE ONLY

Conclusion:

M S K A & Associates/ M S K C & Associates

V.1.2024
Chartered Accountants
CLIENT NAME:
DOCUMENT NAME: POD Tracking
PERIOD END:
DOCUMENT #:

FOR ILLUSTRATION PURPOSE ONLY

Party Name
POD Number
CLIENT NAME
DOCUMENT NAME Physical verification by Management
PERIOD END
DOCUMENT #

Objective:
To obtain evidence on management compliance with the requirements of the CARO 2020 in respect of physical verification of inventory.

Work Done: (OSP Procedures and Results to be well incorporated in APT as well)
1. Understand management process on conducting physical verification of inventory during the year including periodicity, coverage etc.
2. Obtain and verify the Company's policy and procedures for conducting physical verification of PPE and ensure compliance with requirements of CARO.
3. Ensure Physical verification was conducted as per Company's policy and procedures.
4. Obtain and verify the physical verification report on count conducted by Management. Refer Table 1 below
5. Reconcile the inventory as per physical verification report and as per inventory listing/ stock register, Refer Table 2 below
6. Add/ Modify as per professional judgement of ET.

Guidance:
1.Columns herein are illustrative in nature, audit team may add or delete columns, if required.

Table 1

Particulars Response

1. Obtain Company's Policy for physical verification

(Attach policy and document relevant details)
2. Management count conducted on
3. Inventory count instructions issued by and date
(Attach instructions and document relevant details)
4. Types of inventory covered
5. Locations covered
6. Coverage in terms of value and %
7. Assess and document the requirement to involve expert during the count
8. Is Expert involved by Management during the count
9. Physical verification Done by
10. Physical verification report approved by
11. Inventory count sheets signed by
(Attach signed inventory sheets etc.)

12. Physical verification report

(Attach verification report and document relevant details such as
observations noted, differences identified etc.)
13. Observations noted
14. Differences Identified, if any
14A. any discrepancies of 10% or more in aggregate for each class
of inventory were noticed (in terms of value) in the stock records/
register as compared to books of account

15. Management Action on differences identified, if any

16. Other Remarks

Table 2 - Reconciliation of physical verification report with inventory listing/ stock register

Sr No Inventory Type Material Material Location As per As per Differenc Reconciled unreconcile Remarks As per As per Differen Reconci unreconci
Code Description books physical e d books physical ce led led
count/ count
physical
verification
QTY QTY QTY QTY QTY (Obsolete/ INR INR INR INR INR
Scrap etc.)
1 Finished Goods 12345 Calibration alignmePune factory 100 90 10 0 10 10 200,000 180,000 20,000 - 20,000

2
3
4
5

M S K A & Associates/ M S K C & Associates

V.1.2024
Chartered Accountants
Conclusion:

Guidance:
1. Columns herein are illustrative in nature, audit team may add or delete columns, if required.
2. The physical verification report carried out by management/ management expert is attached here -- refer ----->
3. Refer page ____ of the Physical verification carried report where the above discrepancies have been identified/ noted --
4. The date of physical verification report shared by the expert is dated _____

M S K A & Associates/ M S K C & Associates

V.1.2024
Chartered Accountants
 Entry Differe Remarks
posted nce if (Obtain and
any document
management's
response to the
INR INR

20,000 - 20 items identified

as scrap, entry
posted by
management

M S K A & Associates/ M S K C & Associates

V.1.2024
Chartered Accountants
CLIENT NAME
DOCUMENT NAME Comparison with Stock Statements to ensure compliance with CARO reporting
PERIOD END
DOCUMENT #

Objective:
To compare details of stock as per books of account with stock statements submitted with bank.

Work Done:
1. Obtain the stock or similar statements filed by the Company with the lender and take the same on record
2. Obtain and verify the sanction letters in regard to working capital limits and take the same on record
3. Trace the Quantity & Values of Stock from the inventory records.
4. Trace the Quantity & Values of Stock from the Stock Statements submitted to lenders.
5. Compute Discrepancies between Stock as per inventory & stock statement submitted.
6. Enquire management for Discrepancies & record reasons for the same
7. Ensure reporting in CARO accordingly.
8. Add/ Modify as per professional judgement of ET.

Stock as per book Stock as per Stock StatementDiscrepancies Inquire with

Management
Particulars Remarks
Quantity Value Quantity Value Quantity Value for
Discrepancies

Conclusion:

M S K A & Associates/ M S K C & Associates

V.1.2024
Chartered Accountants