CHAPTER V CASE STUDY

5.0 AUDIT OF THE COMPANY Planning As per the guidelines of the college, we have approached one of the respected Chartered accountant firm M/s K.P.Angle & Co., Margao-Goa on 2nd November, 2009. Mr. K.P.Angle Chartered accountant was kind enough to call us on the same day in his cabin and explained about his firm and initially what work we will have to carry out in his firm and under whose leadership and how best we have to gain/grasp the knowledge in the Internal Audit and general financial Audit of the company who are registered with him for audit and finalisation purpose. Immediately Mr. K.P.Angle called Miss. Rajal Alvenkar and told her that all necessary guidelines of audit to be conducted in the required firm. Accordingly we have started our work under Miss. Rajal. Mr. K.P.Angle & Co. has given us engagement letter for conducting Internal Audit of M/s Shirodkar Shipyard Pvt Ltd. Vasco, for the financial year 2008-09.

On the basis of the above letter we the Audit assistant planned to Audit in the following way: A. Audit Programme Time period for the completion of Internal Audit of the 6 months from April 2009 to September 2009 was one month or working day of the month was (24 working days) for the Shirodkar Shipyard Pvt Ltd, Vasco which is running there three more concerns as under: Shrimanguesh Shipping Pvt Ltd Thirthraj Shipping Co. Pvt Ltd. Precision Dredging Pvt Ltd.

B. Audit Plan Name of the organisation: M/s Shirodkar Shipyard Pvt Ltd & their branches. Type of audit: Internal audit Time period: from 1st April to 30th September 2009.

The details of the Audit plan is as mentioned below: 1st week verification of cash balances, petty cash book, main cash book, with the interaction through chief accountant of the company and also the vouching of the purchase register. 2nd week verification of the bank statements, reconciliation of bank statements and vouching of the sales register.

3rd week- trial balance verification and salary statement verification and deduction thereon of above mentioned company. 4th week- verification of the final accounts including the statutory requirements. Note: During the end of every week; solving the quarries recorded during the verification with the chief accountant. During the last day of the Audit submission of the report to our principal M/s K.P.Angle & Co. Chartered Accountant about our verification of records and observation etc.

PROCESS OF AUDITING

Period of Audit 1st Dec, 2nd Dec, and 4th Dec. (2009)

WORK DONE We both started our work with the verification of cash balances, main cash book and no discrepancies observed. The vouching of the purchase register with their vouchers and receipts of the co. And their 3 branches. While the verification and the vouching we found some vouchers are missing, wrote down the quires such as voucher and receipts was not found in case of some transactions and also some amount was wrongly entered in the ledger.

7th Dec, 8th Dec, 9 Dec ,10 Dec & 11 Dec.(2009)

th th th

We did verification of sales register with sales vouchers and receipts& also verification of bank Statements with bank book, reconciliation of bank statements of main company and their 3 branches. And wrote down the quires as and when verification was done like dates, amounts entered wrongly etc., and at every last day of week the quires was solved with

14 Dec,15 Dec, presence of accountant of the main companies. 16th Dec, 17th We started verification of trial balance and salaries Dec, 18th Dec.. statement with salary register and deductions thereon. (2009) And every salary receipts and vouchers was checked and also we noted that if it was stamped with signature of the employee, where the amount of salary was 21st Dec, 22nd Dec, 23rd Dec and 24th Dec.. (2009) Rs.5000/- and above, If it was not found we marked it as quires and on last day of week we requested to them to rectify the same. We continued with the verification of final accounts including statutory requirement with statement of income and all entries posted.

th

th