INTERNSHIP REPORT ON AUDIT PROCEDURES

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Internship Report
On
“Audit procedures of a GAGAN CO-OPERATIVE
HOUSE CONSTRUCTION SOCIETY LTD.”
Firm
A Study on “H.L SHAH & ASSOCIATES”

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CS MALA UPADHAYAY
Professor
Faculty of Commerce Department
St. Xavier’s College of Management & Technology
Prepared By:
Ravi Kumar
B.com (professional)
(Major in Accounting)
Department of Commerce
Date of Submission: 15 October 2016
Prepared Under the Supervision of

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Letter of Transmittal
OCTUBER 15, 2016
Ms. Mala Upadhayay
Lecturer
AKU University
Subject: Submission of Internship report.
Respected Madam,
It is a pleasure to be able to handover the report of my internship
program to you on “Audit procedure in GAGAN CO-OPERATIVE
HOUSE CONSTRUCTION SOCIETY LTD. : A case study on H.L
SHAH & ASSOCIATES”.
The internship program has provided me the opportunity to work with
the employees of H.L SHAH & ASSOCIATES which gave me valuable
insights about the life in an organization. This really helped me
significantly to enhance my practical knowledge.

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This task has also given me the opportunity to explore the activities of
audit firms. The report contains a working procedure of Chartered
Accountants. It was a great pleasure for me to have the chance to work
on the firm which remains good position in Patna.
I, therefore, convey my thanks to you for your kind cooperation,
supervision and advice in conducting and preparing this report. I have
completed the whole program with great passion.
I appreciate you will assess my report considering the limitations of the
study.
Sincerely,
_________________
Ravi Kumar
Roll no. 108
BCP VTH
SEM

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Letter of Approval
This is to certify that Ravi Kumar, a student of AKU University of St.
Xavier’s College of Management & Technology has completed the
internship report titled “ Audit Procedure in GAGAN CO-OPERATIVE
HOUSE CONSTRUCTION SOCIETY LTD.: A Case Study on H.L
SHAH & ASSOCIATES”, under my supervision. His internship
placement was at H.L SHAH & ASSOCIATES Chartered Accountant
Firm. I am pleased to state that he has worked hard in preparing this
report and he has been able to present a good picture of the
concerned organization. The data and findings presented in the report
seem to be authentic.
I wish his every success in life.
………………….. ..…………………
MS. Mala Upadhayay CA. Pravind Kumar Singh
Lecturer Chartered Accountant
AKU University

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Acknowledgement
It is indeed a great pleasure and honor on mine to have the opportunity
to submit this report after One month of practical orientation on H.L
SHAH AND ASSOCIATES.
I convey my deepest appreciations to my honorable supervisor
Professor Mala Upadhayay for her continuous guidance and whole-
hearted supervision and supporting me in preparing this internship
report. I thank her for being a constant source of inspiration.
I would like to convey my utmost appreciation to CA Pravind Kumar
Singh for his sincere guidance and supervision. My successful
completion of internship program in H.L SHAH AND ASSOCIATES
would not have possible without the help of some kind-hearted people.
My sincere gratitude goes to Mr. Deepak Kumar, Manager, H.L SHAH
AND ASSOCIATES, for reviewing the whole report so carefully and for
giving me valuable advices and suggestions to complete the whole
thing in a right manner. Last but not the least; I would like to express
my deepest gratitude to the officers and personnel of H.L SHAH AND
ASSOCIATES for their continuous support and valuable suggestions,
cooperation and assistance in the preparation of this report.
I would like to show my gratitude towards some of my friends who gave
their selfless effort to conduct the study. Finally, I thank my college,

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ST. XAVIER’S COLLEGE OF MANAGEMENT AND TECHNOLOGY
and Office of Career Services for giving me the opportunity of self-
development through practical experience.

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Executive Summary
This report titled “Audit of GAGAN CO-OPERATIVE HOUSE
CONSTRUCTION SOCIETY LTD. – A Case Study on H.L SHAH &
ASSOCIATES” is an outcome of BCP internship program. Such
programs facilitate us to apply our understanding of the theoretical
knowledge in the practical field. This report contains the details of the
audit practice followed by H.L SHAH & ASSOCIATES.
H.L SHAH & ASSOCIATES- as my first experience to professional
world. H.L SHAH & ASSOCIATES has established a close working
relationship with many national consulting firms for providing services to
clients in Patna,Ranchi & Mumbai. In this way H.L SHAH &
ASSOCIATES has enriched its professional base for serving the clients
interest in best manner.
In these four weeks internship program, I was allocated in the Gagan
apartment as an Audit staffs. I have worked in this report followed by
the knowledge that I have gained from working, trainings and my
personal experiences.
The first part of the report consist a study background of the project.
The second part of the report contains of organization’s profile of H.L
SHAH & ASSOCIATES. In the third part I have tried to discuss about

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literature review of the audit procedure in India and in the sub-division
of third part about the audit procedures followed by H.L SHAH &
ASSOCIATES in details. In the fourth part the client’s audit procedure
& I have introduced my learning in the sixth part. Followed by this in
the next sections I have tried my best to include my recommendations
from my point of view to carry out audit engagement in H.L SHAH &
ASSOCIATES and to minimize such problems. In part eight, I have
drawn an overall conclusion.

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TABLE OF CONTENTS
TITLE
TITLE PAGE 1
LETTER OF TRANSMITTAL 3
LETTER OF APPROVAL 5
ACKNOWLEDGEMENT 6
EXECUTIVE SUMMARY 8
TABLE OF CONTENTS
CHAPTER - 1: STUDY BACKGROUND
INTRODUCTION 14
ORIGIN OF THE REPORT 15
OBJECTIVES OF THE STUDY 15
SCOPE OF STUDY 16
METHODOLOGY OF COLLECTION OF INFORMATION 17
LIMITATIONS OF THE STUDY 18
CHAPTER - 2: ORGANIZATION’S PROFILE
FIRM’S PROFILE 20
PROFILE OF THE FIRM 20
BACKGROUND 21

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OUR COMMITMENT 22
VISION 22
REGISTRATION OF FIRM 22
OUR TEAM 22
PROFILE OF CA PRAVIND KUMAR SINGH 24
CHAPTER -3: LITERATURE REVIEW
3.1 AUDIT PROCEDURE IN INDIA
GENERAL DEFINITION OF AUDIT PROCESS AND PROCEDURE 28
AUDIT PROCESS AND PROCEDURES IN INDIA 29
3.2 AUDIT PROCEDURES FOLLOWED BY H.L SHAH & ASSOCIATES
ENGAGEMENT PROCEDURES 33
NEW CLIENTS 34
EX-CLIENTS OR CLIENTS FROM LAST YEAR 36
AUDIT PROCEDURES 37
CHAPTER -4 CLIENT’S AUDIT PROCEDURE 39
CHAPTER -5 SOME OTHER WORK
TDS RETURN PREPARATION. 45

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ONLINE REGISTRATION OF PAN IN INCOME TAX E-FILLING PORTAL 47
ONLINE CHECKING OF MASTER DATA UNDER COMPANIES ACT THROUGH WEBSITE. 50
CHAPTER -6 LEARNING PART
INTRODUCTION 54
NATURE OF THE JOB 55
SPECIFIC RESPONSIBILITIES OF THE JOB 56
CRITICAL OBSERVATION 56
CHAPTER -7 RECOMMENDATIONS 60
CHAPTER -8 CONCLUSIONS 61
CHAPTER -9 APPENDIX 63
CHAPTER -10 REFERENCES 66

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STUDY BACKGROUND
Introduction
Origin of the Report
Objectives of the study
Scope of study
Methodology of collection of information
Limitations of the study

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INTRODUCTION
In today’s world academic education is not adequate to enable a
student to compete with confidence and reach his/her goal without
having experience with the outside world. In order to have an idea and
gain experiences, we, the students of Faculty of Commerce, St.
Xavier’s College of Management & Technology have to undertake four
weeks internship program at any organization.
As a part of my BCP Program, the four weeks internship program gave
me the opportunity to have a practical knowledge on auditing
procedure. The assignment was how a chartered accountancy firm
performs an audit and also to gain a knowledge and practical
experience on how audit work is performed in corporations, companies
and non-profit making organizations.
To face much more complex and challenging business world in the
challenging business areas, practical knowledge is essential to expand
our theoretical base. To gather this practical knowledge, we were
forwarded different organization after completing BCP Program. As I
have an intention to become a chartered accountant, I was forwarded
to H. L. Shah & Associates, a prominent chartered accountancy firm in
Patna.
This study gave me an opportunity to observe and perform real
world knowledge about the audit procedure, which is followed by the

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chartered accountancy firm. In the internship period I could relate the
theoretical knowledge of auditing to practical exposure.
Origin of the Report
The internship program is mandatory requirement for the student who
are graduating from the BCP program under the faculty of Commerce
of Aryabhatt Knowledge University. In the internship program I was
engaged in a host firm named H. L. Shah & Associates. For four
weeks period. I have learned how an audit is conducted. I also learned
about the audit procedures of chartered accountant firm and how the
engagement is done in case of an annual audit. As a result I have
decided to write a report about the audit procedures of H. L. Shah &
Associates from practical knowledge that I have observed.
OBJECTIVES OF THE STUDY
 To have an overall idea about the audit procedures of H. L.
SHAH & ASSOCIATES.
 To gain practical knowledge and experience on how H. L. SHAH
& ASSOCIATES performs an audit and how audit work is

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performed in corporations, companies and non-profit making
organizations.
 To identify about how to accumulate and process evidences to
make an audit report.
SCOPE OF STUDY
I have been assigned in H. L. SHAH & ASSOCIATES that gave me
tremendous scope to familiarize with the audit procedure of the
organization. Major parts of scope are point out below:
a) Background of the host organization and also their position.
b) Audit procedure, which is followed by the organization for
performing any audit.
c) Nature and importance of it has depicted in this study.
d) Audit methodology of the firm, which is followed by the
organization for performing any audit.

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e) Audit administration of the firm, which is followed by the organization
for performing any audit.
METHODOLOGY OF COLLECTION OF INFORMATION
In order to prepare the assigned project paper I have collected
necessary information from two types of source as follows:
1) Primary sources information.
2) Secondary sources information.
Primary sources information
1. I have collected primary information by working with two audit team.
2. Discussing with engagement partner, audit manager, audit staff and
articled student.
Secondary sources information
1. I have also collected secondary information like annual audit report,
management audit report, accounting system & audit working papers.

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2. The information was obtained from various corresponding files of the
firm.
LIMITATIONS OF THE STUDY
The study is conducted with an objective to make a thorough study of
external audit procedure. I have availed many facilities and faced some
obstacles during my study. These obstacles may be termed as
limitation of the study. These limitations are as follows:
a) Scheduled time span was not sufficient to cover all information.
b) As an independent audit firm the information of the case study is not
adequate for this study.
c) To some extend the exact audit procedure is not followed due to
time and other constrains.
d) As the internship was the first practical experience, it was not
possible for me to know all and everything of audit procedure.

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Firm’s Profile
Profile of the firm
Background
Our commitment
Vision
Registration of Firm
Our team
Profile of CA Pravind Kumar Singh

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Firm’s Profile
PROFILE OF THE FIRM
Name of the Firm: H. L. Shah & Associates
Date of Registration: February 1988
Address: F - 57, Dreams Mall, LBS Marg,
Bhandup(west), Mumbai - 400 078.
Fax: 022-2166 3065
Phones: 09820952337
E-mail: hlshah.fca@gmail.com
Web: www.hlshahfca.com
Patna Office: 401, A Block, Gagan Apartment,
Exhibition Road, Patna 800001

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Background
H. L. Shah & Associates was established in Feb 1988. It is a leading
chartered accountancy firm rendering comprehensive professional
services which include audit, management consultancy, tax
consultancy, accounting services, manpower management, H. L. Shah
& Associates is a professionally managed partnership firm. The Team
consists of distinguished Chartered Accountants, corporate financial
advisors and tax consultants. The firm represents a combination of
specialized skills, which are geared to offers sound financial advice and
personalized proactive services. Those associated with the firm have
regular interaction with industry and other professionals which enables
the firm to keep pace with contemporary developments and to meet the
needs of its clients.
Our commitment
We are committed to provide consistent, customized and workable
solutions to our clients and strive to support our services with the
highest level of professionalism, efficiency and technology.

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Vision
To accomplish the assignment through the experience of firm’s
partners & professional staff and also to arrange specific technical
expertise from our associates of various streams of professions.
Registration of Firm
H. L. Shah & Associates Chartered Accountants Firm is registered
under the Institute of Chartered Accountants of India in the year 1988.
OUR TEAM
 CA H. L. SHAH is Fellow Chartered Accountant, Commerce
Graduate, Law Graduate, Fellow of Insurance Institute, & DISA
(ICAI) is a member of the Institute of Chartered Accountants of
India (ICAI) since Feb, 1988. He has vast experience in
accounts, audit, project finance, management consultancy,
consultancy of direct and indirect taxes and expert opinion on
various matters and handling corporate affairs in different areas.

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 CA PRAVIND KUMAR SINGH is Associate Chartered Accountant,
Commerce Graduate and DISA (ICAI) and is a member of
Institute of Chartered Accountants of India since Feb, 2008. He
has quality experience in accounts, audit of all kinds and
consultancy of various nature.
 CA BINAY KUMAR is Associate Chartered Accountant, Master in
Commerce and is a member of Institute of Chartered Accountants
of India since June, 2010. He has quality experience in accounts,
audit of all kinds and consultancy of various nature.

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Profile of CA Pravind Kumar Singh
CA. PRAVIND KUMAR SINGH is providing a Cost- Effective
Alternative for book-keeping and accounting needs of our valuable
clients. We are processing day-to-day accounting transactions and
handling reporting needs (MIS) of all types and sizes of business
organization by our trained professionals, having expert knowledge of
various laws & computer applications, SAP & other software, giving us
the edge to handle complex & challenging job thus ensuring the
highest degree of standard in providing these kind of services & it
includes:-
1 Assistance in maintenance of necessary books of accounts of the
company.
2 Transactions Management (IT¬ enabled processing of financial
transactions)

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like accounting transaction processing including accounts receivable,
accounts payable, payroll processing, expenses, bank reconciliation,
assets accounting, leases and credit appraisal.
3 Finalization of Accounts on monthly, quarterly, half-yearly & annual
basis.
4 Translation of foreign currency transactions into INR and accounting
thereof.
5 Conversion of Financial Statements from foreign currency into INR
and vice-versa.
6 Financial reporting on monthly, quarterly, half¬ yearly & annual
financial
statements including performance analysis (variance in budget &
actual) &
forecasting.
7 Liaison with auditors for finalization of accounts.
8 Supervision of the accounting transactions to ensure compliance with
best accounting practices.

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9 Application & implementation of suitable internal control system &
procedures as per the requirement of the organization.

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LITERATURE REVIEW
AUDIT PROCEDURE IN INDIA
 General Definition of audit process and procedure
 Audit process and procedures in India

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AUDIT PROCEDURE IN INDIA
General Definition of audit process and procedure
Auditing is a significant part of the company’s compliance efforts.
Properly executed, audits will enable to identify conduct which may
violate the federal and state laws or detect weaknesses in the claim
development and submission process. Audits also will enable to
appropriately target and measure the effectiveness of its educational
efforts, ensure that appropriate corrective actions have been taken and
quickly identify problems in the claim development and submission
process which give rise to civil or criminal exposure.
Audit process
It is a sequential order of steps followed by the auditor in the
examination of client records. The audit process may vary depending
upon the nature of the engagement, its objectives, and type of audit
assurance desired. The process includes understanding the particular
client's environment, conducting the auditing procedures and tests,
appraising the audit results, and communicating the results to
interested parties.

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Auditing procedure
It is auditor technique in gathering auditing evidence to substantiate the
reliability of the accounting records. The auditor evaluates whether the
information presented is logical and reasonable. Examples of auditing
procedures are observing assets to verify existence and amount (e.g.,
fixed assets), collecting independent confirmations from external parties
(e.g., bank confirmation), evaluating internal control, appraising
management's activities, and obtaining management representations.
The audit procedures to be followed on an engagement are indicated in
the audit program. The work papers indicate what has been done on
the audit.
Audit process and procedures in India
The audit firm India are regulated and guided by the Institute of
Chartered Accountants Of India. ICAI has suggested and provided the
firm with different subject regarding auditing. Like others it has
suggested auditing procedures that can be followed by the audit firm in
India in its Audit Practice Manual.
Audit process suggested by Audit Practice Manual (APM) may be
summarized as follows.
1. Planning.

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2. Collection of evidence.
3. Controlling and recording.
4. Review and opinion.
Audit Process
Planning
In order to assist in a disciplined approach to planning and to ensure
compliance with Indian Standards on Auditing (ISA), the APM provides
documentation enabling a record of planning to be kept, demonstrating
the approach adopted for each audit and the reasons for that approach.
Collection of audit evidence
The APM audit programs are comprehensive and designed to deal with
most eventualities. However, it is crucial that the programs are tailored
to meet particular circumstances of the client.
Controlling and recording
Planning Controlling &
recording
Collection of
evidence
Review and
opinion.

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This section provides detailed guidance on the use of the
documentation, including the way in which the forms should be
completed for the preparation of a well-documented audit file.
Review and opinion
This section deals with how partner can review the overall audit and
form an opinion. APM provides some checklists which can be used to
review the overall performance of the client.

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LITERATURE REVIEW
Audit procedures followed by H.L SHAH &
ASSOCIATES
Engagement Procedures
 New clients
 Ex-clients or clients from last year
 Audit Procedures

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Audit procedures followed by H.L SHAH & ASSOCIATES
The primary goal of H.L SHAH & ASSOCIATES at the time of involving
in any audit engagement is to provide the opinion on Financial
Statements in accordance with Indian Standards on Auditing (ISA) as
well as International Standards on Auditing (ISA). H.L SHAH &
ASSOCIATES also seek to provide auditing and management
consultancy services that are innovative, efficient and most importantly
responsive to the client’s needs.
It is another fact that before starting the audit procedure there presents
a series of more procedures. For example audit engagement letter,
audit clearance letter, team meeting etc.
Engagement Procedures
Before discussing the Audit Procedures followed by H.L SHAH &
ASSOCIATES, I will try to focus on the engagement procedures
through which H.L SHAH & ASSOCIATES is engaged/ recruited by
the client to perform the audit. Before starting the audit work, some
letters are exchanged between H.L SHAH & ASSOCIATES and clients.

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H.L SHAH & ASSOCIATES faces three kinds of situations in
engagement process:
 Engagement with new client.
 Engagement with existing client
 Directly appointed by the client.
NEW CLIENTS
In case of new clients, four letters are exchanged between H.L SHAH
& ASSOCIATES and client including acceptance letter of appointment
at the time of involving with the new client. Following stages are
followed by both H.L SHAH & ASSOCIATES and client:
 STAGE – 1: Client requires for technical and financial proposal
from the H.L SHAH & ASSOCIATES
Client generally gives circular with the newspaper or directly wants
proposal for audit from the audit firm. In case of direct offer they
request to the audit firm to submit a quotation for the cost of conducting
audit of the client. They also mention the specific date to confirm the
decision taken by the audit firm and completion date for audits. The
client firm mentions here the key areas of the audit in the form of

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attachment. It assures that if H.L SHAH & ASSOCIATES audits client’s
firm, they will supply the formal terms of reference/audit mandates to
govern the conduct of audit.
STAGE – 2: The technical and financial proposal is sent by H.L
SHAH & ASSOCIATES to the client
After reviewing the client letter or paper’s circular, audit firm drafts a
proposal letter to the client. The proposal letter contains technical and
financial proposal for carrying out the subject of audit. H.L SHAH &
ASSOCIATES estimates its personnel costs after considering the
mandates to be utilized and using the minimum hourly rate of fees as
prescribed by The Instituted of Chartered Accountants of India (ICAI).
The firm also mentions that as it is an estimate, the cost may vary with
variation in number of mandates estimated to be utilized for the job.

STAGE – 3: Acceptance by the client on the basis of proposal of H.L
SHAH & ASSOCIATES – A letter of contract
After receiving proposal letters from various audit firms, client then
selects the one which is favorable to them, and it appoints the audit
firm for audit purpose. From the technical and financial proposal of the
H.L SHAH & ASSOCIATES the client company understands the nature
of the audit (such as independent, external) to assess the

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organization’s internal control system in administering the matter of
audit.
STAGE – 4: A letter is sent by H.L SHAH & ASSOCIATES to the
client confirming to work with the client – Confirmation Letter
After receiving the acceptance letter from the client, H.L SHAH &
ASSOCIATES provides confirmation letter describing the firm’s
willingness to work with the client.
EX-CLIENTS OR CLIENTS FROM LAST YEAR
Three letters are exchanged between the H.L SHAH & ASSOCIATES
and client:
 Willingness letter for reappointment: In this letter H.L SHAH &
ASSOCIATES wants to audit this year. It can request to increase
audit fee or change some other conditions.
 Client sends appointment letter.
 H.L SHAH & ASSOCIATES accepts this appointment.

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Audit Procedures
There are seven steps involved in the procedures that come one after
another. The procedures followed by the H.L SHAH & ASSOCIATES
are basically inspired by the approaches suggested by ICAI in Audit
Practice Manual. Steps are as follows:
1. Identity Overall Goals
2. Gather & Evaluate Initial Information
3. Assess General Risks
4. Assess Account Specific Risk
5. Develop Efficient And Effective Audit Plan Program
6. Conduct Audit Testing
7. Evaluate And Communicate Audit Results.

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CLIENT’S AUDIT PROCEDURE

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CLIENT’S AUDIT PROCEDURE
In the course of my Internship period I was assigned as an audit staff
for performing the audit of GAGAN CO-OPERATIVE HOUSE
CONSTRUCTION SOCIETY LTD. H.L SHAH & ASSOCIATES was
being engaged to audit the apartment for a period of four weeks. There
they send an audit team where I was one of them. I am giving a small
overview on the audit of GAGAN CO-OPERATIVE HOUSE
CONSTRUCTION SOCIETY LTD.
Audit procedures of RWL
Identify Firm’s Overall Goal
GAGAN CO-OPERATIVE HOUSE CONSTRUCTION SOCIETY LTD.
engaged H.L SHAH & ASSOCIATES in conducting an audit and to
expressing an opinion as to whether the financial statements are
prepared and presented fairly in accordance with Generally Accepted
Accounting Principles (GAAP). Our audit team considered these
standards in formulating an opinion taking into accounts the errors,
irregularities and efficiency of this Commercial building.

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Gather & Evaluate Initial Information
After our audit team got engaged in Commercial building audit project,
we have collected some basic information of the shops inside in the
Gagan Co-operatives. We went through what their basic business are,
to understand their operations, considered their internal control
structure and also identified their expectations.
Assess General risks of clients
During audit planning and risk assessment, we obtain initial audit
evidence in order to:
 Effectively assess the inherent risk of potential financial statement
misstatements,
 Identify indicators of possible going concern problems, and
 Identify account specific risk and design an overall audit approach
to provide reasonable assurance of detecting material
misstatements.
Risks Area
 CASH
Risks
 Cash transactions may not be recorded accurately

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 Cash may not exist
 Review confirmation replies
 Test accounts where there is no confirmation
ACCOUNT RECEIVABLE
Risks
 The accounts receivable listing or individual balances may be
inaccurate
 Accounts receivable may not be collectible
 Sales transactions may be processed in the wrong period
Steps
 Agree a detailed listing of accounts receivable to the summary
 Review confirmation replies
 Test accounts where there is no confirmation

INVENTORY
Risks
 Inventory items may not exist
 Inventory carrying values may not be realizable
Steps
 Observe physical inventory
 Examine receiving and issuing activity
 Test obsolete, slow-moving, scrapped or damaged listing

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ACCOUNTS PAYABLE
Risks
 The accounts payable listing may not be accurate
 There may be unrecorded accounts payable balances
 Accounts payable transactions may be processed in the wrong
period
Steps
 Agree detailed accounts payable listing to summary
 Test for unrecorded liabilities
NOTE: - AFTER COLLECTING ALL THE INFORMATION WE DID THE
AUDIT OF GAGAN CO-OPERATIVE HOUSE CONSTRUCTION SOCIETY
LTD. & PREPARED THE FINANCIAL STATEMENTS OF THAT
COMMERCIAL BUILDING.SO FINALLY I MADE THE FINANCIAL
STATEMENT ON THE EXCEL SHEET AND ATTACHED IT IN THE
APPENDIX CHAPTER AT THE END OF THIS REPORT.

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SOME OTHER WORK
 TDS return preparation.
 Online registration of PAN in income tax e-filling portal
 Online checking of master data under companies act
through website.

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SOME OTHER WORK
I have tried my best to enhance my abilities and apply the
knowledge that I gained during the studies. On my first few days at
firm, company manager Mr .Deepak Kumar gave me training session
about TDS returns. Mr. CA Subham Kumar (CA-Practice) also
shared his practical experience with us and gave me some
techniques of this process.
Different task that I performed during my internship
1. Maintenance of accounts/ book keeping.
2. TDS return preparation.
3. Online registration of PAN in income tax e-filling portal
4.Online checking of master data under companies act through
website.
Software used during internship:
1. MS-excel

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Overview of TDS
Tax deducted at source (TDS) is a tax that is deducted from
income that a company in India pays to a recipient or supplier
if the income amount exceeds a specific statutory limit in a
financial year.
The types of income that are subject to TDS include:
„ Salary.
„ Interest and dividends.
„ Winnings from the lottery.
„ Insurance commission.
„ Rent.
„ Fees from professional and technical services.
„ Payments to contractors and subcontractors.
The withholding amounts for TDS can be deducted from an
invoice submitted by a supplier or from the payment that is
issued to the recipient or supplier. Examples of recipients and

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suppliers include contractors, providers of professional services,
employees, and real estate landlords. Companies submit a TDS
certificate to each supplier on a monthly or yearly basis. The
certificate includes the payments, as well as information about
the company and supplier. Companies must also submit an
annual return to the government for each recipient or supplier
for the financial year. TDS certificate can be either Form 16
(R75I10A) or Form 26Q-P2P-IND (R75I122EQ). Form 16 is the
TDS certificate which an individual submits and Form 26Q is
the TDS certificate which a company submits to the tax
authorities.
TDS must also be deducted from payments issued to third
parties by both corporate and non-corporate entities. The entity
must deposit the amount owed for withholding at any of the
designated branches of banks that are authorized to collect
taxes on behalf of the government of India. The entity must
also submit the TDS returns, which contain details about the
payments and the challan for the tax deposited to the
Income Tax Department (ITD).

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For electronic TDS, companies must generate the Form 26Q
for each financial quarter. This is a statutory requirement for
the ITD.
Online registration of Pan in Income tax e-filling portal
Registration process
Type in the URL of e-Filing application (https://incometaxindiaefiling.gov.in )
 Click on the 'Register Yourself' tab and select 'Individual'
against the radio button found under “Individual/HUF”.

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 The user will be directed to the registration page and the user will fill the
following fields for further validation.
1. Click on the “Continue” button. The registration details page should be
displayed.

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2. Click on “SUBMIT‟. If it is success, user will be navigated to
the “Registration successful” screen.

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The user receives a confirmation e-mail with an activation link to the
registered Email ID. An SMS along with OTP (One time Password) is also
sent to the registered Mobile number.
In order to activate the account, the user should click on the Activation link
and enter the Mobile PIN.
On success, the user account is activated and the database is updated. For
Non-Resident Indian, Mobile PIN is exempted.
Online checking of master data under companies act through
website
Step by step process :
 To access Master Company/LLP Data click “View Company/LLP
Master Data” link; to view Index of Charges, click 'View Index of

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Charges'; and to access signatory details, click on ‘View Signatory
Details’ on the left hand side of this page.
 Enter the Company/LLP Name or CIN/LLPIN of the Company/LLP.
 Click the Submit button in case CIN is entered.
 In case CIN/LLPIN is not available Press the “Search” button after
entering the first few characters in Company/LLP Name field.
 List of companies/LLPs would appear. Select your company/LLP by
clicking the ‘Select’ button.
 CIN/LLPIN of the Company/LLP with Company/LLP Name shall be
displayed on the screen.
 Click the Submit button once CIN/LLPIN is displayed.
 System shall display the required data.
 To take printout of the same, click on ‘Print’ button given on the
page.
 On clicking the same, the required data shall be displayed in a
tabular form. Take the print out of the same.

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NOTE:-I attached one master data of a company that I
did during my internship period. In the Appendix
chapter at the end of this report.

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LEARNING PART
Introduction
Nature of the Job
Specific Responsibilities of the Job
Critical Observation

P a g e | 54
LEARNING PART
Introduction
In four weeks of internship I was assigned at the audit learner, from the
firm H.L SHAH & ASSOCIATES Chartered Accountants for the audit
of: GAGAN CO-OPERATIVE HOUSE CONSTRUCTION SOCIETY LTD
to complete my internship program as an audit staff. During my
internship program most importantly I realized how to work under the
pressure of responsibilities maintaining chain of commands and working
in a team. CA Pravind sir, taught me to work with rules and
regulations, where I have gained the understanding on how to reach a
mutual understanding between different people while working together.
This practical orientation is necessary for the development and
preparation of a person before entering into the corporate world. The
things that I have learned at H.L SHAH & ASSOCIATES Chartered
Accountants are:
 Meaning of responsibility
 Responsibility to the profession
 Necessity of commitment
 Auditing and Reporting responsibilities

P a g e | 55
 Working with ethics
 Working Independently
 Client dealings
 Working with Generally accepted auditing standards
 Punctuality and regularity is very important
 Ability to interact with different sorts of people
Nature of the Job
My job in H.L SHAH & ASSOCIATES was to work in probed the
audited part of GAGAN CO-OPERATIVE HOUSE CONSTRUCTION
SOCIETY LTD.I was assisting an audit learner. The team consisted of
two people including me.
First few days I do not have to do anything except observing them and
I was asked to learn by communicating and staying with them. At the
first week my primary work was to learn how to operate an ms-excel
customize software which is used for maintaining company account.
Then, I practically involved in work with the auditor’s team. I was
mainly handling cheque register book where I kept record of each
cheque received from client. In addition I had to make a notification

P a g e | 56
report every day according to the cheques drawing date. It is worth to
mention that, I had great opportunity to be a part of audit of the
company at the end of the year. As a result, I had to extend my
internship period. At that time my responsibility was to find out the total
account receivable of the year 2011 and 2012 with detail break up.
To be part of the team it is responsible for maintaining an efficient and
accurate Accounting function.
Specific Responsibilities of the Job
Basically, I had to verify calculations, maintained cheque book register
and prepared cheques for payment.
Critical Observation
The Working environment is very friendly and employees/staff are
ready to help all the time. There is a good chain of command always
followed. Moreover, H.L SHAH & ASSOCIATES has software to
maintain their total accounting system while company is not relying on

P a g e | 57
that software rather then keeping record of transaction manually. This
manual method is time consuming and laborious. From my point of
view I think the company should more efficiently use the customize
software that they have. By upgrading and using software might fruitful
for the firm.

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Recommendations
Working at H. L. Shah & Associates, Corporate Office was a great
experience for me. I have learnt many things throughout my internship
period. From my little knowledge what I have some recommendations
as follows:
H. L. Shah & Associates have a very few employee at account
management department whereas the work pressure is high. So the
firm could increase their workforce and share the work together.
Secondly, to increase the rate of work efficiency they need faster
computer with user friendly operating system. There is customized
accounting software in the firm which is not beneficial. The company
should update or add more features in that software and appoint a
professional operator so that it might save time, money, labor and
execute an impact for the long run.

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CONCLUSION
GAGAN CO-OPERATIVE HOUSE CONSTRUCTION SOCIETY LTD.
Audit Procedure describes the step by step instructions of a financial
statement audit. This procedure is sufficient for H.L SHAH &
ASSOCIATES. If all these steps are followed properly, it is possible to
ensure a proper conduct of financial statement audit. But as I stated
above, in some cases the auditors of H.L SHAH & ASSOCIATES
violates some audit standards and not carry out their audit tasks
properly. As a result, the quality of audit work cannot be ensured all the
time. But if all these problems can be removed, H.L SHAH &
ASSOCIATES will be able to maintain its present status and improve
its position to the client. So all the partners and the articled students of
H.L SHAH & ASSOCIATES must be conscious about this matter.

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PROFIT AND LOSS ACCOUNT OF GAGAN CO-OPERATIVE HOUSE CONSTRUCTION SOCIETY LTD.

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BALANCE SHEET OF GAGAN CO-OPERATIVE HOUSE CONSTRUCTION SOCIETY LTD.

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REFERENCES
 Audit Manual, ACNABIN & Co., Chartered Accountants.
 www.hlshahfca.com
 Bangladesh Accounting Standards(BAS)
 www.icai.org/
 http://en.wikipedia.org
 www.google.com

INTERNSHIP REPORT ON AUDIT PROCEDURES

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INTERNSHIP REPORT ON AUDIT PROCEDURES