GST AUDIT
=> on the eleventh day of my Internship at the auditor's office I have learn about the ust
in audit.
Introduction to GST audit
⇒ Audit under GAST is the proccess of examination of records, returns and other
documents Maintained by a tasiable person. The purpose is to veriby the correctness of
turnover declared, tastes paid, refund claimed and inpilt tax Credit availed and to
assess the Lompliance with the provisions of GST.
Statutory audit under Section 35[5]:
> Every GST registered tas 21/31 person whose turnover during a financia year exceeds
the prescribed Limit of Rs. 2 (nore was subjected to a statutory audit under Section 35
(5) of the central Croods and services tax [CAST] act.
Audit by Tax authorities under Section (65)
> The Commissioner of CGST/SUST (or any officer authorised by him) Masy conduct an
audit of a tax payer. The period of audit to will be a financial year of part of a tinancial
year Cor multiple financial years)
Special audit under Section (bb):
=> To Investigate specific Transactions or discrepancies, requering a detaited
examination of recads and accounts.
Types of GST audit
Statutory audit Sec 35(5)
Audit by Tax authorities Sec(65)
special audit under see bb.
PREPARE GST IN DEPARTMENTAL AUDIT
> on the Tilth day of my Internship at the auditor's office. That day I have learned the
prepare the GST in Departmental audit.
=> preparing for a GST departmental audit requires meticulous organization and
proactive planning to ensure Compliance with IST Laws. proper preparation can help
bussiness avoid errors, peralties, and delays during the audit process.
Review GST returns-
→ Care fully leamine all GIST returns filed with the authoritie.
⇒ Ensure that turnover, tas payments, and Input tax Credits [ITC] match the financial
records.
organise financial Records.
> Tax Invoices e-way bills, and receipts for Salesa and purchases.
> payment record, Including challans and rebrind Claims.
> Input tax Credit [ITC] registers and ledgers.
=> Bank Statements.
Train Your Staff:
> Ensures that your accounting and finance teams are familiar with GST laws and
compliance requirement.
⇒ Assign responsibilities for department preparation and audit coordination to Specific
team members.
⇒ provide training sessions on GST rules and updates...
Maintain a GST Compliance profile:
=> Tax liability reports.
> Details of exemptions Claimed
⇒ ITC Summaries
Track audit process:
⇒ use a check list or audit tracking tool to monitor the audit Process
> keep records et communication with authorities.
> Track the Status of the deadlines. time line and audit to avoid russing
Review legal positions and opinions
→ maintain copies of regal correspondence or advance rulings to Justify position taken
in tax returns.
→ use Contentiores proffessional opinion to defend issues during audits.
FINAL REVIEW OF AUDIT FILES:
=> on the thirteenth day of my Internship at the auditor's oftue. I was given to
opportunity to observe and assists the final stages of an audit process. This Included a
detailed review of audit documentation, Cross verification of financial data and
Compilling the audit report that would be shared with the went.
> I observed how the audit teams discussed unresolved issues Lommunication with the
client for Uarification, and ensured all neccessary Supporting dowments were attached.
I also observed auditor, ensures the tone of the report is proffessional, neutral, and fact
based, avoiding any blased language
The final review of andet biles typically Involved
Completeness Check
WAT
> Ensuring au neccessary documents and evidence are included.
accuracy verification -
Tan
⇒ periering Calculation, reconciliation, and other critical components.
Complience Cheek
⇒ verifying adherence to auditing Standards, policies, and procedures.
Quality assessment:
> Ellaluating the overall Quality of the audit work and documentation
INCOME TAX AUDIT
=> on the fourteenth day of My Internship at the auditor office. That day I can observe
the Income tax in auditing. that Income yout lan be auditing. Important role play for the
Income tax aurdit under Section 44AB:
⇒ As per the provisions of the Income tax act, 1961 specified persons are required to
get their books of accounts audited before filing a tar return. Businessess and
Individuals with Income from business and proffession, whose turn over exceeds the
specified threshold limits are obligated to comply with tax audit under section (44AB).
The belove. Infographic will help you understand the applicability of tax audit
specified protbession:
=> Total gross receipts exceed so lakh in a year.
Business
> Turn over / Gross receipts>71 Covore
in the lase of business. the turn over limit shall be 2 10 Crores, it.
> cash receipts do not exceed 5%. of the total receipts during of Tax FY.
> Lash payments out of total Payments are up to 5%. during the FY.
<< As per the Income Tax Tax audit is Mandatory act 1961, for bussiness / Proffessions
exceeding a Certain turn over limit to ensure compliance with the law.
ADVANTAGES & DIS ADVANTAGES OF AUDITINGI.
> on the fifteenth day of my Internship at the auditors altaice.
have learned about the advantages and disadvantages of the auditing
Aduantages
→ verification of Books and Statements.
→ Discovery and prevention of Eviors.
⇒ Discovery and prevention of fraud.
=>Moral Check
=> Independent opinion
=> Property value assesment
> use ful for Tax Department
Disadvantages
.........
=> Not Suitable for small frims
> consumes more time and effort.
→ Chances of Errors.
> Imposibility of checking all Transactions.
Conclusion-
15 days Internships at the auditor's office has been an Incredibly enriching and eye-
opening experience. It prounded Me with a strong trudation in practical auditing and
financial procedures far beyond what test books alone lan offer. Throughout the
Internship, I had the opportunity to work on real audit tasks, observe the lot of matters
in auditing field. and understand the Critical role of auditas play is maintaining
transparency and Trust in financial system. I also learned how accuracy, diligence, and
ethical Conduct are Not Just Expecti but veccessities in this fieb
