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 NAMEOverview 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 ET Response
APT
TOC

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

2 TO BE ADDED BY ET 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 Lead Schedule'!A1
from the trial balance to the lead sheet and also verified prior
year numbers with the signed financial statements

2 Tested the reconciliation of purchase register with ledger to Pur Reg Reco'!A1
ensure completeness and accuracy of the purchases.

3 Tested COGS reconciliation to ensure completeness and COGS Reconciliation'!A1

accuracy of the cost of material consumed.

4 Analysed Gross Margin year on year and quarter on quarter. GM Analysis'!A1

Inquire and corroborate the reasons for variance

5 Verified purchases during the year with underlying supporting Purchase Testing'!A1
documents to verify existence and accuracy of the purchases
made during the year

6 Analysed purchases at product level current year vis a vis Purchases- Products-Analysis'!A1
previous year. Inquired and corroborated the reasons for
variance.

7 Analysed raw material purchases current year vis a vis previous Purchases -RM-Analysis'!A1
year. Inquired and corroborated the reasons for variance.

8 Analysed purchases at party level current year vis a vis previous Partywise-Analysis'!A1
year. Inquired and corroborated the reasons for variance.

9 Analysed consumption current year vis a vis previous year. Consumption-Analysis '!A1
Inquired and corroborated the reasons for variance.

10 Verified purchases returns during the year with underlying Purchase returns- debit note'!A1
supporting documents and analysed reasons for the same.

11 Analysed purchase returns current year vis analysis'!a vis Purchase returns-analysis'!A1
previous year. Inquired and corroborated the reasons for
variance.

12 Verified purchases near to year end to ensure they are Cut off Procedures - Pre'!A1
accounted for in the correct accounting period

13 Verified purchases subsequent to year end to ensure they are Cut off Procedures - Post'!A1
accounted for in the correct accounting period

14 br

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?

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

V.1.2024
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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?

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

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Chartered Accountants
 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

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
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Illustrative purchase analytics cases industry wise :

ICAI has recently released Technical Guide on Digital Assurance to give more impetus to digital tr
to make use of external information and ensure the reliablity and relevance of this external informatio
cases which audit teams can apply in their audits across various phases of audit. Refer Guide in the be

Technical Guide on Digital Assurance

The below are illustrative cases provided in Technical Guide. ET can devise their own Data analytics p

Illustrative list Accounts

of use cases
& which audit teams can make apply in their audits :
Process Assertions
Procure to Pay Purchase- completeness

Procure to Pay Acconts Payable -

Identifying struck-off
companies and other
company details

Procure to Pay Procure to pay – GST

Input tax credit
cs cases industry wise :

nical Guide on Digital Assurance to give more impetus to digital transformation in audit. This guide contains how
tion and ensure the reliablity and relevance of this external information to be used in audit, also it has illustative use
ply in their audits across various phases of audit. Refer Guide in the below link

provided in Technical Guide. ET can devise their own Data analytics procedures using external information

which audit teams can make apply in their audits :

Objective
To reconcile the full population of the purchase ledger of an entity with the
corresponding London Metal Exchange (LME) rates received from source site.

To compare vendor master of the entity to identify as to whether the transacting

Company are within the list of struck off companies from the respective ROCs
files from the MCA portal and report those transactions in the financial
statements, as required basis.

Auditor can identify fictitious GSTINs in the vendor master wherein, no details of
such GSTINs are available on the GST portal. Similarly, to identify cancelled and
suspended GSTINs from the portal.
n in audit. This guide contains how
d in audit, also it has illustative use

sing external information

Industry
Metals & Mining ( Trading)

All

All
CLIENT NAME:
DOCUMENT NAME: Grouping
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 enviornment.

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 Year Note in the Audit Procedure /
Amount Amount Financial Working Paper
Statements Reference

a f a

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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 1 - "Presentation of financial statements" and Schedule III
to the Companies Act, 2013.

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

1. Prepare the lead sheet and agreed to the current year trial balance.
2. Verify the previous year figures from the signed financial statements.
3. Ensure disclosure requirements as per requirements of Ind AS 1 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

Cost of Material Consumed 20XX-XX 20XX-XX

A. Raw Materials Consumed

Opening Stock
Add: Purchases
- -
Less: Closing Stock
- -

B. Packing Materials Consumed

Opening Stock
Add: Purchases
- -
Less: Closing Stock

C.Other material Consumed

- -

a f

Purchases of Stock-in-Trade 20XX-XX 20XX-XX

Purchases of Stock-in-Trade

a f

Changes in inventories of finished goods, Stock-in -Trade and work in- 20XX-XX 20XX-XX
progress or Decrease in Stock
(Increase)
Opening Stock:
WIP
Finished Goods

Closing Stock :
WIP
Finished Goods

a f
Conclusion:

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V.1.2022
Chartered Accountants
 M S K A & Associates/ M S K B & Associates LLP/ M S K C & Associates
V.1.2022
Chartered Accountants
CLIENT NAME:
DOCUMENT NAME: Purchase register reco and summary
PERIOD END:
DOCUMENT #:

Objective:
To ensure completeness of purchase register by reconciling the same with ledger.

Work Done:
1. Obtained the invoice-wise purchase register for the period April 2023 to March 2024 extracted from SAP/ [me
2. Summarise the purchases into various categories. Refer below.
3. Reconcile the purchases as per purchase register with the ledger.
4. Inquire with [Name and Designation of relevant authority] and obtained for reasons for all the differences.
5. Corroborate the reasons for significant variances with the underlying documentation obtained during our subs
6. Add any other procedure as per professional judgement of engagement team.

As per purchase register

Particulars Type Quantity Amount
Packing Raw Material

XXXX Raw Material

YYYYY Raw Material

ZZZZZ Stock in Trade

SSSSSS Stock in Trade

Consumables Raw Material

Accessory Raw Material

Chemical Raw Material
Obsolete Raw Material
Mix Raw Material

Capital Expenditure Fixed Assets

IT Consumables Fixed Assets
Tools Fixed Assets
Others Others
Total - -

As per ledger

Reconciling Item 1
Reconciling Item 2
Reconciling Item 3
Reconciling Item 4
Net Difference -
arch 2024 extracted from SAP/ [mention the ERP] using t code ____ We have ITGC comfort on SAP [mention the ERP].

r reasons for all the differences.

mentation obtained during our substantive testing. [ET to document this in detail as relevant and applicable]

As per purchase register Q1 Q2

Remarks Quantity Amount Quantity
ention the ERP].

Q2 Q3 Q4 Total
Amount Quantity Amount Quantity Amount Quantity
Total
Amount
CLIENT NAME:
DOCUMENT NAME: COGS Reconciliation
PERIOD END:
DOCUMENT #:

Objective:
To perform reconciliation of cost of goods sold.

Work Done
1. Obtain the reconciliation of COGS with financial statements
2. Verify the reconciliation items with underlying supporting documents.
3. Inquire with [Name and Designation of relevant authority] and obtained for reasons for all the differences.
4. Corroborate the reasons for significant variances with the underlying documentation obtained during our s
5. Add any other procedure as per professional judgement of engagement team.

Reconciliation

Particulars Amount

Opening Stock
Add: Purchase
Less: Closing Stock

Consumption recomputed -
Add: Manual Entries in COGS GL
Add: Local Freight Inward
Less: Manual issue of RM (550052)
Less: Cash discount on purchases adjusted
Less: [Add Nature]
Less: [Add Nature]
Derived Consumption -

Consumption as per financials -

Consumption as per MB51 -

Total Consumption as per Financials -

Net Difference -

Conclusion:
g documents.
y] and obtained for reasons for all the differences.
e underlying documentation obtained during our substantive testing. [ET to document this in detail as relevant and app
of engagement team.

Remarks

Traced to signed financials of previous year.

Traced to purchase register
Refer APT " "

Refer link.
Refer link.
Refer Indirect Consumption WP. APT Ref. - " ".
Refer link.
Refer Indirect Consumption WP. APT Ref. - " ".
Refer link.

Refer link.
Refer Indirect Consumption WP. APT Ref. " "
s in detail as relevant and applicable]
CLIENT NAME:
DOCUMENT NAME: Gross Margin Analysis
PERIOD END:
DOCUMENT #:

Objective:
To inquire and corroborate the reasons for variance in Gross Margin. [ET can perform this at product/ category le

Work Done
1. Trace gross sale for current year and previous year from the respective financial statements.
2. Trace Cost of goods sold from COGS reconciliation and also respective financial statements.
3. Compare gross margin and gross margin % of current year with previous year.
4. Inquire with [Name and Designation of relevant authority] and obtained for reasons for all the variances.
5. Corroborate the reasons for significant variances with the underlying documentation obtained during our subs
6. Add any other procedure as per professional judgement of engagement team.

Gross Margin Analysis

31-March-20XX 31-March-20XX Variance

Gross sale -

Cost of material consumed -

Purchases of stock-in-trade -
-
Changes in inventories of finished
goods, work-in-progress and stock
in trade

Gross Margin - - -

Gross Margin % #DIV/0! #DIV/0! #DIV/0!

Quarter 1 Quarter 2 Quarter 3

Gross sale

Cost of material consumed

Purchases of stock-in-trade
Changes in inventories of finished
goods, work-in-progress and stock
in trade
Gross Margin - - -

Gross Margin % #DIV/0! #DIV/0! #DIV/0!

Variance #DIV/0! #DIV/0!

Conclusion:
orm this at product/ category level as per their professional judgement]

al statements.
l statements.

sons for all the variances.

tation obtained during our substantive testing. [ET to document this in detail as relevant and applicable]

Variance % Remarks

#DIV/0!

#DIV/0!
#DIV/0!
#DIV/0!

Quarter 4 Remarks
#DIV/0!

#DIV/0!
applicable]
CLIENT NAME:
DOCUMENT NAME: Purchase Testing
PERIOD END:
DOCUMENT #:

Objective:
To verify existence, accuracy and completeness of the purchases recorded in the financial statements.

Work Done:
1. Obtained the invoice-wise purchase register for the period April 2023 to March 2024 extracted from SAP/ [mention the ERP] using t code ____ We h
2. Ensure completeness of the ledgers by reconciling with the ledger.
3. 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. For the samples selected, verified following underlying supporting documentation as documented below.
a. Obtain and verify the purchase order/ contract and verify rate, quantity and amount. Ensure the same is valid and rates are appropriately authorise
b. Obtain and verify the bill of entry, test all line items of bill of entry and verify the rate, quantity, taxes/ duties, amount and inco terms.
c. Obtain and verify invoice and test all line item of total invoice amount as each invoice has multiple items which have been billed and verify rate, qu
d. Check if the rate as per invoice is same as rate as per purchase order/ contract. Refer Column " ".
e. Check if the quantity as per invoice is less than quantity as per purchase order/ contract. Refer Column " ".
f. Obtain and verify the Goods Receipt Note (GRN) and verify quantity. Ensure the same is appropriately authorised and quantity reconciles with invoi
g. Trace the payment made against the purchase from the Bank Statement.
6. Add/ Modify as per professional judgement of ET

Sr No Particulars Count Remarks

1 Number of samples a per TOD calculator Refer link
2 Number of samples as tested below 10 Refer link
3 Difference if any -10

As per purchase register

Sr No. Party Name Type of Product/ Purchase Voucher Narration
Item voucher Date
number

1
2
3
4
5
6
7
8
9
10
etc

Conclusion:

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V.1.2022
Chartered Accountants
he ERP] using t code ____ We have ITGC comfort on SAP [mention the ERP].

ates are appropriately authorised.

nt and inco terms.
e been billed and verify rate, quantity and amount billed.

d quantity reconciles with invoice, refer column " ".

Traced from Purchase Order/ Service Contract

Amount Purchase Order Purchase Order / Party Item Qty Rate Amount Taxes
Number/ Service Service Contract Name Descriptio
Contract Reference Date n

0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00

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r/ Service Contract Verified from bill of entry (in case of imports)
Total Purchase Purchase Order Is the person approved Bill of Entry Bill of Entry Party Name
Amount Terms appropriately Agreement / Purchase Number Date
approved by order is authorised as per
(Name and Authority Matrix (i.e.
Designation) Head of Department)

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f imports)
Product Code Product Description Qty Rate Basic Amount

0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00

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 Traced from Invoice
Taxes/ Duties Total Amount Inco terms Date of Invoice Party
invoice Number Name

0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00

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Descriptions of Transaction Product Code Product Quantity Rate Basic Amount Taxes
Description

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 Invoice Difference Remarks Is the invoice in the Invoice Authorised by ? Is the person approved Check 1
Amount name of the Company (Name and Designation) invoice is authorised as
per Authority Matrix (i.e.
Head of Department)

0.00 0.00 True

0.00 0.00
0.00 0.00
0.00 0.00
0.00 0.00
0.00 0.00
0.00 0.00
0.00 0.00
0.00 0.00
0.00 0.00

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 Traced from GRN
Check 2 GRN GRN Date GRN Qty GRN is appropriately Check 3 Whether invoice Whether invoice
Number authorised by Booked In booked in correct
(Name and Correct heads? accounting period ?
Designation)

True True

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 Bank Statement Tra
Whether invoice Cost Code Invoice Bank Name Bank Account Bank Reference Date as per Bank
booked in correct Cost No Accounted Number Statement
centre Code? Correctly?

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Bank Statement Tracing TDS Testing
Amount Difference Payment Advice Is the person approved payment TDS %
Approved by advice is authorised as per (Trace from income tax act,
(Name and Authority Matrix (i.e. Head of 1961 as per nature of
Designation Department) expense )

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TDS Testing
TDS TDS Difference GST % Service VAT % Are taxes
Amount Amount to if any Tax % charged
deducted be appropriate
as per deducted
books/ GL as per
audit
team
Yes

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 Remarks / Supporting/ Remarks
Working paper Reference (Please obtain
explanations/ supporting wherever the
variation is unusual)

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CLIENT NAME:
DOCUMENT NAME: Purchases- Products-Analysis
PERIOD END:
DOCUMENT #:

Objective:
To inquire and corroborate the reasons for variance between current year amounts and comparative information for top products.

Work done:
1. Trace the items wise purchases made during the current year & previous year from the purchase register/ records maintained by client.
2. Compare the item-wise purchases made during the current year with corresponding previous year purchases.
3. Compute variances between current & previous year itemise purchases.
4. Inquire with [Name and Designation of relevant authority] and obtained for reasons for all the significant variances.
5. 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]
6. Add any other procedure as per professional judgement of engagement team.

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

Guidance:
1. This sheet is to be used only if the client is a Trading Company

Sr No. Name of the product Current year's Purchases Previous year's purchases Variance
purchased
Quantity Average Amount Quantity Average Amount Quantity Rate Amount
Purchase Purchase
Rate Rate

1 100 10 1,000 50 20 500 1,000 (500) 500

2 - - -
3 - - -
4 - - -
5 - - -
6 - - -
7 - - -
8 - - -
9 - - -
10 - - -

a f

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Chartered Accountants
ent this in detail as relevant and applicable]

Remarks / Supportings/
Working paper Reference
(Please obtain
explanations/ supporting
wherever the variance is
unusual)

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V.1.2022
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CLIENT NAME:
DOCUMENT NAME: Purchases -RM-Analysis
PERIOD END:
DOCUMENT #:

Objective:
To inquire and corroborate the reasons for variance between current year amounts and comparative information for top raw materials.

Work done:
1. Trace the items wise purchases made during the current year & previous year from the purchase register/ records maintained by client.
2. Compare the item-wise purchases made during the current year with corresponding previous year purchases.
3. Compute variances between current & previous year itemise purchases.
4. Inquire with [Name and Designation of relevant authority] and obtained for reasons for all the significant variances.
5. 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]
6. Add any other procedure as per professional judgement of engagement team.

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

Guidance:
1.This sheet is to be used only if the client is a Manufacturing Company

Sr No. Name of the raw Current year's Purchases Previous year's purchases Variance Remarks / Supportings/
material purchased Working paper Reference
Quantity Average Amount Quantity Average Amount Quantity Rate Amount (Please obtain explanations/
Rate Rate supporting wherever the
variance is unusual)
1 100.00 10.00 1,000.00 50.00 20.00 500.00 1,000 (500) 500
2 - - -
3 - - -
4 - - -
5 - - -
6 - - -
7 - - -
8 - - -
9 - - -
10 - - -

a a a f f f

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CLIENT NAME:
DOCUMENT NAME: Partwise-Analysis
PERIOD END:
DOCUMENT #:

Objective:
To inquire and corroborate the reasons for variance between current year amounts and comparative information for Top vendors.

Work done:
1. Trace the vendor wise purchases made during the current year & previous year from the purchase register/ records maintained by client.
2. Compare the vendor-wise purchases made during the current year with corresponding previous year purchases.
3. Compute variances between current & previous year vendor-wise purchases.
4. Inquire with [Name and Designation of relevant authority] and obtained for reasons for all the significant variances.
5. 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]
6. Add any other procedure as per professional judgement of engagement team.

Illustrative Legends:
a Traced to the current year purchase register
f Traced to the previous year purchase register

Guidance:
1. The details for the top 15 parties from which the client purchases raw materials should be included here.

Sr No. Name of the Name of the Current year's Purchase Previous year's purchase Variance Remarks / Supportings/
party product/raw material Working paper Reference
purchased Quantity Average Amount Quantity Average Amount Quantity Rate Amount (Please obtain explanations/
Rate Rate supporting wherever the
variance is unusual)
1 100 10 1,000 50 20 500 1,000 (500) 500
2 - - -
3 - - -
4 - - -
5 - - -
6 - - -
7 - - -
8 - - -
9 - - -
10 - - -

a a a f f f

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CLIENT NAME:
DOCUMENT NAME: Consumption-Analysis
PERIOD END:
DOCUMENT #:

Objective:
To inquire and corroborate the reasons for variance between current year amounts and comparative information for consumption of top raw materials.

Work done:
1. Trace the items wise consumption of raw material & stores during the current year & previous year from the records maintained by client.
2. Compare the item-wise consumption of raw material & stores during the current year with corresponding previous year consumptions.
3. Compute variances between current & previous year consumption of raw material & stores.
4. Inquire with [Name and Designation of relevant authority] and obtained for reasons for all the significant variances.
5. 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]
6. Add any other procedure as per professional judgement of engagement team.

Illustrative Legends:
a Traced to the current year consumption register/ records
f Traced to the previous year consumption register/ records

Guidance:
1.The details for the top 15 raw materials consumed during the audit period should be included here.

Sr No. Name of the Current year's Consumption Previous year's consumption Variance Remarks / Supportings/
product/raw material Working paper Reference
consumed Quantity Average Amount Quantity Average Amount Quantity Rate Amount (Please obtain explanations/
Rate Rate supporting wherever the
variance is unusual)
1 100 10 1,000 50 20 500 1,000 (500) 500
2 - - -
3 - - -
4 - - -
5 - - -
6 - - -
7 - - -
8 - - -
9 - - -
10 - - -

a a a f f f
Conclusion:

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

V.1.2022
Chartered Accountants
CLIENT NAME
DOCUMENT NAME: Purchase returns- verification
PERIOD END
DOCUMENT #:

Objective:
To verify the reasonableness of the purchases returned by the entity.

Work Done:
1. Obtain the listing of purchases returns/ credit note issued during the year or extract the same from purchase register.
2. Reconcile the amount with trial balance to ensure completeness.
3. 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. Verify the debit note issued and obtain reasons for purchase return/ issuance of credit note.
6. Verify the underlying invoice against which debit note is issued.
7. Verify the new invoice issued against the debit note.
8. Add any other procedure as per professional judgement of engagement team.

Sr. No. Name of the Vendor Amount

vendor code Details verified from relevant d

Reference / Date Vendor

Debit Note Number Name Currenc Quantit
y y

1
2
3
4
5
6
7
8
9
10

Conclusion:

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

V.1.2023
Chartered Accountants
 Details verified from e-mail co
Details verified from relevant debit note
approva
Amount Invoice Invoice Date Invoice Invoice Check 1 Check 2 Reason for
Number against Quantity Amount issue of
against which it is against Debit Note
which it is raised which it is
raised raised

True True
True True
True True
True True
True True
True True
True True
True True
True True
True True

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

V.1.2023
Chartered Accountants
Details verified from e-mail copy of Operation team's Details verified from e-mail copy of
Details verified from new in
approval Vendor (Vendor approval)
Approval on Approver's Approval Approval of Approval Date Number Date
Debit Note Designation Date vendor

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

V.1.2023
Chartered Accountants
Details verified from new invoice (if any)

Currency Quantity Rate Amount Difference Remarks

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

V.1.2023
Chartered Accountants
CLIENT NAME:
DOCUMENT NAME:Purchase returns-analysis
PERIOD END:
DOCUMENT #:

Objective:
Comparing purchase return to purchase ratio for unusual variance.

Work Done:
1. Trace the amount of total purchases & purchase returns for the current & previous year from the purchase register/ records maintained by the client.
2. Compare ratio of purchase returns to purchases for the current year/period with the corresponding figures for previous years/periods.
4. Inquire with [Name and Designation of relevant authority] and obtained for reasons for all the significant variances.
5. Corroborate the reasons for significant variances with the underlying documentation obtained during our substantive testing. [ET to document this in detail a
6. Add any other procedure as per professional judgement of engagement team.

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

Current Year Previous Year Variation

Purchases -

Purchase returns -

Purchase
returns as % of
purchases #DIV/0! #DIV/0!

a f

Conclusion:

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

V.1.2022
Chartered Accountants
ous year from the purchase register/ records maintained by the client.
h the corresponding figures for previous years/periods.
sons for all the significant variances.
tation obtained during our substantive testing. [ET to document this in detail as relevant and applicable]

Remarks

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

V.1.2022
Chartered Accountants
CLIENT NAME
DOCUMENT NAME: Cut off Procedures - Pre
PERIOD END
DOCUMENT #:

Guidance:
Obtain details of sales of goods/products prior to and subsequent to the period end/deliveries with inventory value over Rs. XX in the
months either side of the period end. Verify that sales and receivables were recorded in the appropriate accounting period.

Objective:
To verify that the period end purchases is booked in the correct accounting period as per the inco terms of the Company.

Cut off Date/ Period:

Work Done:
1. Perform cut off procedures i.e. in case of any such purchases/ invoices raised near to year end has been properly recorded as goods in transit.
2. ET to determine average lead time based on purchases during the year.
3. Inquire with Management for the lead time considered by them.
4. Basis above, ET determine the cut off period on which testing is to be performed
5. Consider the population of purchases during last XX days (cut off period as determined above) of the current year. [ET to determine average le
6. Apply OSP Calculator on the total population. Refer "[Add APT Reference where OSP Calculator is attached]"
7. Use "Idea Software" to select the samples to be tested based on the computed sample size.
8. For the samples, verify the underlying invoice, bill of entry, gate inward register to ensure whether the purchases have been accounted in the c
9. Add any other procedure as per professional judgement of engagement team.

As extracted from the Sales Register

Sr. No Date of sale Name of Party Party Dr./Cr. Qty Rate Invoice
Code Amount

Example 10-Oct-20 XYZ Ltd X001 Dr. 100 20 2,000

1
2
3
4
5
6
7
8
9
10

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

V.1.2023
Chartered Accountants
entory value over Rs. XX in the
e accounting period.

s of the Company.

een properly recorded as goods in transit.

current year. [ET to determine average lead time, discuss lead time with management and determine cut off period accordingly]

e purchases have been accounted in the correct period.

GST

80

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

V.1.2023
Chartered Accountants
CLIENT NAME
DOCUMENT NAME: Cut off Procedures - Pre
PERIOD END
DOCUMENT #:

Guidance:
Obtain details of sales of goods/products prior to and subsequent to the period end/deliveries with inventory value over Rs. XX in the
months either side of the period end. Verify that sales and receivables were recorded in the appropriate accounting period.

Objective:
To verify that the purchases subsequent to year end is booked in the correct accounting period as per the inco terms of the Company.

Cut off Date/ Period:

Work Done:
1. Perform cut off procedures i.e. in case of any such purchases/ invoices raised near to year end (subsequent) has been recorded in the correct ac
2. ET to determine average lead time based on purchases during the year.
3. Inquire with Management for the lead time considered by them.
4. Basis above, ET determine the cut off period on which testing is to be performed
5. Consider the population of purchases during first XX days (cut off period as determined above) of the current year. [ET to determine average le
6. Apply OSP Calculator on the total population. Refer "[Add APT Reference where OSP Calculator is attached]"
7. Use "Idea Software" to select the samples to be tested based on the computed sample size.
8. For the samples, verify the underlying invoice, bill of entry, gate inward register to ensure whether the purchases have been accounted in the c
9. Add any other procedure as per professional judgement of engagement team.

As extracted from the Sales Register

Sr. No Date of sale Name of Party Party Dr./Cr. Qty Rate Invoice
Code Amount

Example 10-Oct-20 XYZ Ltd X001 Dr. 100 20 2,000

1
2
3
4
5
6
7
8
9
10

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

V.1.2023
Chartered Accountants
entory value over Rs. XX in the
e accounting period.

he inco terms of the Company.

equent) has been recorded in the correct accounting period.

current year. [ET to determine average lead time, discuss lead time with management and determine cut off period accordingly]

e purchases have been accounted in the correct period.

GST

80

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

V.1.2023
Chartered Accountants