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Article Training Resource

I.  Training guide

II.  Ethics

III.  Audit

1.  Implementing Standard on Quality Control (SQC) 1: An illustrative checklist

  • Annual Firm Personnel Independence Confirmation

  • Independence Policies

  • Client/Engagement Acceptance

  • Engagement Planning Memorandum

  • Engagement Summary Memorandum

  • Firm Quality Control Inspection Checklist

2.  Risk Based Assessment of Financial Statements: An illustrative checklist

  • Overall Audit Strategy

  • Understanding the Entity

  • Understanding the Information System

  • Risk Assessment Procedure

  • Steps for Risk Identification

  • Overall Response Relating to Financial Statements in General

3.  Guide to Audit Sampling

  • Stratification and value-weighted selection

  • Examples of factors Influencing Sample Size for Tests of Control

  • Examples of factors Influencing Sample Size for Tests of Details

  • Sample Selection methods

4.  SA-230 Audit Documentation: An illustrative Checklist

5.  SA 501: Audit Evidence- Specific conditions for Selecting Item

  • Stock verification Checklist

6.  SA 570: Going Concern

  • Testing of Going Concern Assumption: A Checklist

6.1   Due Diligence

  • Sample Due Diligence: An illustrative Checklist

  • Preliminary Due Diligence: An illustrative Checklist

  • Commercial Due Diligence: An illustrative Checklist

6.2   Environmental Audit

  • Sample Checklist for Environmental Audit

  • Environmental Statement

  • Sample Environmental Audit Report

6.3   Audit of Complex Financial Instruments: Illustrative guidance

7.  Practitioner’s Guide to Audit of Small Entities

A.   General

Small Audit – Model Working Papers
Specimen For Profile / Information About the Auditee
Applicability Checklist
Engagement Letter
Acceptance Formalities Checklist
Representations by Management

B.   Administration

Time Budget

C.   Planning & Control

Understanding the Client’s Business
Understanding the Accounting Policies
General Audit Programme
Analytical Procedures in Planning the Audit
Assessment of Risk
Performance Materiality
Identification of Material Transactions, Account balances and Disclosures
Permanent File Update
Fraud Risk Questionnaire

D.   Audit Program- Balance sheet items

Audit Program – Tangible Assets
Audit Program – Intangible Assets
Audit Program – Investments
Audit Program – Inventories
Audit Program – Miscellaneous Expenditure
Audit Program – Debtors, Loans and Advances
Audit Program – Cash and Bank Balances
Audit Program – Capital and Reserve
Audit Program – Liabilities

E.   Audit Program- Profit & Loss Account

Audit Program – Revenue
Audit Program – Expenses

F.  Working papers

Regrouping Journals
Adjusting Journals
Specimen for Progress Sheet

G.  Reports

Audit Declaration
Matters for Partner’s Consideration
Summary Memorandum
Summary of Unadjusted Errors
Financial Statement Review
Subsequent Event Checklist
Management Letter Points

H.  Appendices

Appendix – I Standards on Auditing Checklist – Control Sheet
Appendix – II Checklist for Disclosures under Accounting Standards
Appendix – III Illustrative Letter of Confirmation of Inventories Held By Others
Appendix – IV Illustrative Letter Confirmation of Account Receivable
Appendix – V Illustrative Letter of Confirmation of Deposits
Appendix – VI Disclosure Requirement Relating of Investment
Appendix – VII Disclosure Requirement Relating to MSME
Appendix – VIII Illustrative Letter of Appointment
Appendix – IX Specimen letter to be obtained from the Company Conveying the Appointment of Auditors at the General Body Meeting
Appendix – X Specimen Letter of Appointment for Tax Audit U/S. 44 AB of The Income Tax Act, 1961
Appendix – XI Illustrative Letter of Communication to Previous Auditor
Appendix – XII Illustrative Guidance for the applicability Checklist

8.   Practitioner’s Guide To Audit Of Tiny Entities

A.  Applicability checklist

B.   General

Specimen for Profile / Information About the Auditee
Assessment of Risk

C.  Audit Program

Analytical Review Procedures
Matters for Partner’s Consideration
Audit Summary Memorandum
Management Letter Points

D.  Appendix-Standards On Auditing Checklist- Control Sheet

9.  Audit of Banks

Draft Bank Branch Audit Program for the year ended March 31, 2014

10.  Concurrent Audit of Banks

Checklist for various items as per RBI guidelines

11.  Revenue Audit, Stock and Debtors and Credit Audit: Checklist

12.  Model Manual of Instructions with Various Reports & Checklist

13.  Manual on Internal Audit

A.  Internal Audit Engagement Management

Initial Introduction Letter
Proposal of Internal Audit Services
Engagement Letter
Scope and Objective
Organization Background
Industry Research
List of files and Contents

B.  Overall planning

C.  Pre Audit Opening

Opening Meeting Control Statement
General Process Understanding
Data Needs Identification and Collection
Data Analysis and Summary Preparation
Previous Audit Report Analysis
Brain Storming Sessions (Internal)

D.  Detailed Walk Through

Selection of sample
Walk Through Tracking
Documentation of Walk Through

E.  Risk, Checklist, Audit Programme

Listing of Risks and Audit Programme (Checklists)

Corporate Risks Review Checklist
Finance and Accounts Risks Review Checklists
Human Resources Process Review Checklists
Inventory Risks Review Checklists
Information Security Review Checklist
Marketing Risks Review Checklists
Purchases Risk Review Checklists
Production Risks Review Checklists
Sale and Dispatch Risks Review Checklists
Statutory Compliances Review Checklists
Administration Risks Review Checklists

Planning and Executive of Audit Programme
Compilation of Observations and Draft Reporting
Quality Check of Evidence Collection

F.  Report Compilation

Draft Audit Report
Covering Letter for Draft Report – by Email/Letter Head
Collection of Management Comment

G.  Exit Meeting

Fixing of the Meeting Time
Presentation and Action Plan Preparation
Updation of the Action Plan into the Draft Report

H.  Report Issue

Final Report Release Checklist
Audit Committee Presentation (Where Applicable)
Audit Feedback Collection

I.  Work paper closure

Work Paper Compilation and Quality Audit Closures
Quality Audit Checklist
Quality Audit Action Plan Statement
Knowledge Bank updation

J.  Close Outs

Invoice Format
Out of Pocket Expenses Tracking
Overall Closure Checklist

K.  General Annexure

Confirmation of Meeting Format
Minutes of Meeting Formats
Agenda of the Meeting

L.  Standards on Internal Audit Issued by the ICAI

14.  Industry Specific Audits

14.1   Automobile Industry

Fixed Assets: Checklist for Identifying & Assessing the Risk of Material misstatement
Inventories: Checklist for Identifying & Assessing the Risk of Material misstatement
Other Assets, Loans & Advances: Checklist for Identifying & Assessing the Risk of Material misstatement
Current Liabilities & Provisions: Checklist for Identifying & Assessing the Risk of Material misstatement
Other Income: Checklist for Identifying & Assessing the Risk of Material misstatement

14.2   Tea Industry : (Standard Internal Audit program)

14.3   Tours and Travels: (Illustrative Internal Audit Checklist)

14.4   Stock Brokers: Internal Audit Checklist

14.5   Treasury functions in Bank: Checklist

14.6    Inventories and Receivables Audit: Checklist

14.7   Mutual Funds: Internal Audit Checklist

14.8   NPO’S: Illustrative Internal Audit Checklist

IV.   Taxation

A.Guidance Note on Tax Audit under Section 44 AB of The Income-Tax Act, 1961

Terms, abbreviations used in this Guidance Note
Provisions of Section 44 AB
Profession and Business explained
Sales, turnover, gross receipts
Liabilities to Tax Audit- special cases
Specified date and Tax Audit
Tax Auditor
Accounting Standard
Audit Procedure
Professional Misconduct
Audit report
Form No 3CA
Form No 3CB
Form No 3CD
Particulars of Assessee (clause 1-6)
Particulars of Members/Partners (clause 7)
Nature of Business of Profession (clause 8)
Books of Accounts (clause 9)
Presumptive Income (Clause 10)
Method of accounting (clause 11)
Valuation of Closing Stock (clause 12)
Conversion of Assets into Stock in Trade (clause 12A)
Items of Income not credited (clause 13)
Particulars of Depreciation (clause 14)
Deduction under sections 35AB-35E (clause 15)
Bonus, Commission, PF recoveries, etc. (clause 16)
Amount Debited to Profit & Loss Account (clause 17)
Capital expenditure (Clause 17(a))
Person Expenses (clause 17(b))
Advertisement expenses [clause 17(c)]
Payments to clubs [clause 17(d)]
Penalty, fine, etc. [clause 17(e)]
Amounts inadmissible u/s 40(a) [clause 17(f)]
Interest, salary, bonus, etc. to partners [clause 17(g)]
Amounts inadmissible u/s 40A (3) [clause 17(h)]
Amounts inadmissible u/s 40A (7) [clause 17(i)]
Amounts inadmissible u/s 40A (9) [clause 17(j)]
Contingent liabilities [clause 17(k)]
Amount inadmissible in term of section 14A [clause 17(l)]
Amount inadmissible under proviso to section 36(1)(iii) [clause 17(m)]
Amount inadmissible u/s 23 of MSME Act, 2006 [clause 17A]
Payments to relatives under section 40A (2)(b) [clause 18]
Deemed profits under section 33AB/33ABA/33AC [clause 19]
Profits chargeable under section 41 [clause 20]
Payments under section 43B [clause 21]
MODVAT credits [clause 22(a)]
Prior period expenditure [clause 22(b)]
Hundi loans [clause 23]
Loans/Deposits accepted [clause 24(a)]
Loans/Deposits repaid [clause 24(b)]
Certificate for loan taken or repayment [clause 24(c)]
Brought forward loss/depreciation [clause 25(a)]
Change in shareholding [clause 25(b)]
Deductions under Chapter VIA [clause 26]
Tax Deducted at Source [clause 27]
Quantitative details of a trading concern [clause 28(a)]
Quantitative details of a manufacturing concern [clause 28(b)]
Tax on distributed profits [clause 29]
Cost Audit Report [clause 30]
Excise Audit Report [clause 31]
Accounting ratios [clause 32]
Statement of particulars to be annexed to Form No. 3CD
Code of Ethics and other matters
Format of Financial Statements
Circular No. 452 dated 17.3.1986 (Para 5.10)
Circular No. 4/2007, dated 15th June, 2007 (Para 5.13)
Mandatory Communication - Relevant Extracts from the Code of Ethics (Para 9.8)
Council Guidelines No.1-CA(7)/02/2008, dated 8th August,2008 (Para 9.8, 9.9, 9.10, 9.23)
Relevant extracts from the Code of Ethics (Para 9.18)
Form of tax audit particulars to be furnished by members/ firm (Para 9.26)
Revision of recommended scale of fees chargeable for the work done by the members of the Institute (Para 9.27)
Criteria for classification of non-corporate entities as decided by the Institute of Chartered Accountants of India & Criteria for classification of companies under the Companies (Accounting Standards) Rules, 2006 (Para 10.3 & 10.8)
Circular No. 561, dated 22nd May, 1990 (Para 13.12)
Circular No. 739, dated 25-3-1996 (Para 18.1 & 36.7)
The relevant extracts of the Micro, Small and Medium Enterprises Development Act, 2006 (Para 43.9)
Chart of persons specified in Section 40A(2)(b) (Para 44.1)
Circular No. 208, dated 15th November, 1976 & Circular No. 221, dated 6-6-1977 (Para 50.1)
Recommended form of financial statements for non-corporate manufacturing entities (Para 13.8 & 67.3)
Recommended form of financial statements for non-corporate trading entities (Para 13.8 & 67.3)
Form No. 3CA, 3CB and 3CD

V.   Information Technology


A. XBRL Concepts
B. XBRL Mandate
C. Indian Gaap Taxonomy (viewer based) and Business Rules
D. XBRL Validation tool filing manual Ind AS
E. General FAQs on XBRL
F. FAQs for financial statements filing
G. Standard Training material on XBRL

VI.   Others

A. Links to MCA21 (forms and circulars)
B. The Companies Act 2013
C. What is PAN
D. Apply for TAN
E. TDS/TCS statement- AN Overview
F. Filling Income Tax Return
G. Digest of CBDT Notifications and Circulars

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