Sip report

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A
SUMMER INTERNSHIP PROJECT
ON
AUDIT PROCEDURES OF
“ECOVIS R.KABRA CORPORATE ADVISORS LTD.”
SUBMITTED
IN PARTIAL FULFILLMENT OF THE REQUIREMENTS FOR THE DEGREE
OF
BACHELOR OF COMMERCE (HONOURS)
B.COM (H)
OF
AMITY UNIVERSITY, MUMBAI
SUBMITTED BY
SUNITA JAISWAR
A70004616002
BCOM1602
(2016-19)
UNDER THE GUIDANCE OF
DR. JANAKI NAIK
AMITY BUSINESS SCHOOL
AMITY UNIVERSITY, MUMBAI - PUNE EXPRESSWAY,
BHATAN- PANVEL, MAHARASHTRA 410206

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CERTIFICATE FROM THE SIP ORGANISATION

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DECLARATION
I “Sunita Jaiswar” declare that, I have completed a project report titled as Audit
Procedures at “ECOVIS R. Kabra Corporate Advisors Ltd” which is submitted in
partial fulfillment of the requirements for the degree of Bachelor of Commerce (Honours)
of Amity University, Mumbai during 2016-2019.
The information presented in this project is original work and does not form any part of
the project undertaken previously to the best of my knowledge.
DATE: Signature
SUNITA JAISWAR
BCOM1602

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CERTIFICATE
This is to certify that Ms. Sunita Jaiswar, a student of Amity University of B.com (H)
Program has completed the internship report titled “Audit Procedures of ECOVIS R.
Kabra & Co. (Chartered Accountants)”, under my supervision. Her internship
placement was at ECOVIS R. Kabra & Co. (Chartered Accountants) Firm. I am pleased to
state that she has worked hard in preparing this report and she has been able to present a
good picture of the concerned organization. The data and findings presented in the report
seem to be authentic.
Dr. Janaki Naik
PROJECT GUIDE HOI, ABS
Date:

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ACKNOWLEDGEMENT
It is indeed a great pleasure and honor on mine to have the opportunity to express my
profound gratitude towards all the individuals who directly or indirectly contributed
towards practical orientation.
I convey my deepest appreciations to Dr. Janaki Naik 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 Prof. Sanjeev Kadam for his sincere guidance and supervision.
My successful completion of internship program in ECOVIS R. Kabra & Co. (Chartered
Accountants) would not have possible without the help of some kind-hearted people. My
sincere gratitude goes to Ms. Deepa Shetty, Executive of ECOVIS R. Kabra & Co.
(Chartered Accountants), for guiding me throughout the training process 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 ECOVIS R. Kabra & Co. (Chartered Accountants) for their continuous support and
valuable suggestions, cooperation and assistance.
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, Amity University, Mumbai for
giving me the opportunity of self- development through practical experience.
Sunita Jaiswar
BCOM1602
B.com (Honours)

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Table of Contents
CERTIFICATE FROM THE SIP ORGANISATION ......................................................................................................2
DECLARATION...................................................................................................................................................................3
CERTIFICATE.....................................................................................................................................................................4
ACKNOWLEDGEMENT....................................................................................................................................................5
LIST OF FIGURES / GRAPHS ..........................................................................................................................................8
ANNEXURES........................................................................................................................................................................9
EXECUTIVE SUMMARY.................................................................................................................................................10
Chapter 1. Introduction......................................................................................................................................................12
1.1 Objectives of the Study.........................................................................................................................................13
1.2 Scope of Study......................................................................................................................................................13
1.3 Methodology.........................................................................................................................................................14
1.4 Sources of Information .........................................................................................................................................14
1.4.1 Primary Sources Information ..................................................................................................................14
1.4.2 Secondary Sources Information ..............................................................................................................14
1.5 Limitations of Study .............................................................................................................................................15
Chapter 2. Organization’s Profile .....................................................................................................................................16
2.1 Firm’s Profile........................................................................................................................................................16
2.2 About the Firm......................................................................................................................................................17
2.3 Milestones of RKCA ............................................................................................................................................18
2.4 About Clients........................................................................................................................................................18
2.5 Services Provided .................................................................................................................................................19
2.5.1 Audit and Assurance................................................................................................................................19
2.5.2 Accounting ..............................................................................................................................................20
2.5.3 Corporate Finance ...................................................................................................................................20
2.5.4 Financial Communications......................................................................................................................21
2.5.5 International Tax Advisory......................................................................................................................21

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2.5.6 Marketing Development..........................................................................................................................21
2.5.7 System Certification................................................................................................................................22
2.6 What people say about them-................................................................................................................................22
Chapter 3. Conceptual Framework...................................................................................................................................23
3.1 Audit Procedure in India ...................................................................................................................................23
3.1.1 General Definition of audit process and procedure .................................................................................23
3.1.2 Audit process...........................................................................................................................................23
3.1.3 Auditing procedure..................................................................................................................................23
3.1.4 Audit process and procedures in India ....................................................................................................24
3.1.5 Audit Process...........................................................................................................................................24
3.2 Audit Procedures Followed By Ecovis R. Kabra & Co. (Chartered Accountants) ......................................25
3.2.1 Engagement Procedures ..........................................................................................................................25
3.2.2 Audit Procedures .....................................................................................................................................27
Chapter 4: Training Areas.................................................................................................................................................28
4.1 Central Bank of India – Concurrent Audit......................................................................................................28
4.1.1 Job Responsibility ...................................................................................................................................29
4.1.1.4 Preparation of Audit Reports................................................................................................................31
4.2 Corporation Bank – Income Seepage Audit.....................................................................................................32
4.2.1 Scope of the Income Seepage Audit........................................................................................................33
4.3 Hooghly & Industeel Ltd. – Statutory Audit....................................................................................................43
4.3.1 Task Undertaken......................................................................................................................................43
4.3.2 Software Operated...................................................................................................................................48
4.4 Nodus Ltd. - Vouching .......................................................................................................................................50
4.5 Other Task Performed .......................................................................................................................................54
CONCLUSIONS .................................................................................................................................................................55
BIBLIOGRAPHY / REFERENCES .................................................................................................................................56
ANNEXURES......................................................................................................................................................................57

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LIST OF FIGURES / GRAPHS
Figure no. Particulars Page no.
1 Calculation of Bank Guarantees of I Link 34
2 Calculation for cheque charges. 35
3 Query Sheet for cheque charges. 36
4 Query Sheet for the Bank Guarantees of I link 36
5 Query Sheet for the Bank Guarantees of Finacle 37
6 Query Sheet for the SDL Accounts 38
7 Calculation on Bank Guarantees Account of Finacle 39
8 Rough draft of Query sheet 40
9 Rough Draft of Audit Report 41
10.1 & 10.2 Second Part of Draft showing the total seepage. 42
11 Calculation of Loan Interest of Industeel Ltd. 44
12 Calculation of Unsecured Loan of Industeel Ltd. 45
13 Query sheet of Unsecured Loan & Loans for Industeel Ltd. 46
14 Calculations of Unsecured Loan & Loans for Hooghly] Ltd. 47
15 Vouching details of Nodus Ltd. 51
16 Query details of Nodus Ltd. 52
17 Remark Sheet of Nodus Ltd. 53

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ANNEXURES
ANNEXURE I - Details of the Standards on Auditing (SAs)..........................................................................................56
ANNEXURE II - Premises Department............................................................................................................................59
ANNEXURE III - Details of Centralized Rent Report Payment Zone-wise................................................................600
ANNEXURE IV - List of Properties where Deeds have not been registered ..............................................................611
ANNEXURE V - Legal Section........................................................................................................................................622
ANNEXURE VI - Advances Outstanding more than three months ............................................................................633
ANNEXURE VII - Amount Payables more than Six Months Old. ..............................................................................644
ANNEXURE VIII - Security & Transport Section........................................................................................................655
ANNEXURE IX – List of Files that have been vouched during the concurrent audit.................................................66
ANNEXURE X - Glimpse of Concurrent Audit Report of Central Bank of India.......................................................67
ANNEXURE XI - Cover Page of Compliance Report.....................................................................................................68
ANNEXURE XII - Part of Compliance Report ...............................................................................................................69
ANNEXURE XIII - Balance Sheet of Industeel Ltd........................................................................................................70
ANNEXURE XIV- Profit & loss Statement of Industeel Ltd. ........................................................................................71
ANNEXURE XV - Income Statement of Industeel Ltd.................................................................................................722
ANNEXURE XVI - Part of Notes to Accounts of Industeel Ltd...................................................................................733
ANNEXURE XVII - Working of Depreciation ..............................................................................................................744

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EXECUTIVE SUMMARY
This project report titled as Audit Procedures at “ECOVIS R. Kabra Corporate
Advisors Ltd” is an outcome of summer internship program. Such programs facilitate us
for application of theoretical knowledge in the practical field. This report contains the
details of the audit practice followed by ECOVIS R. Kabra & Co. (Chartered
Accountants). It was my first experience to professional world.
They has established a close working relationship with many national consulting firms for
providing services to clients in all over the globe. In this way ECOVIS R. Kabra & Co.
(Chartered Accountants) has enriched its professional base for serving the clients interest
in best manner. In these eight weeks internship program, I was allocated in the banks and
company as an Audit staff.
I have worked in this report followed by the knowledge that I have gained from working,
trainings and my personal experiences. In Initial phase of internship I was assigned with
the Vouching and verification task of all transactions during the audit of Nodus Ltd.
Company.
After this I have been assigned the following audits during my internship period. They are
as follows:
1). Concurrent Audit of Central Bank of India –
 Vouching of expense voucher files of the Bank
 Gathering information
 Collecting the required documents for audit report
 Preparation of Concurrent Audit Report
 Submitting the Reports

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2). Income Seepage Audit of Corporation Bank –
 Calculation of amount of charges on Bank Guarantees such as – Issue Charges
 Calculation of Cheque Charges
 Loans A/c
 Processing Fees
 Preparation of Income Seepage Audit Report, etc.
3). Statutory Audit of Hooghly Ltd. & Industeel Ltd. –
 Vouching of Sales & Purchase Vouchers
 Calculation & Verification of Unsecured Loans & Loans Account
 Preparation of Financial Statement
 Checking the amount of Bonuses & Wages paid to the workers, etc.
I even carried out many other tasks such as filling an Empanelment form, Typed an Hindi
article, Visited reserve Bank of India with Senior Executive in the Foreign Exchange
Department for the issue regarding the penalty on foreign money of one client and many
more. The report is actually a brief discussion of functions that are performed at ECOVIS
R. Kabra Corporate Advisors Ltd.

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Chapter 1. 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, the students of Bachelor of Commerce, Amity University Mumbai, have to undertake eight
weeks internship program at any organization.
As a part of my Summer Internship Program, the eight 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 during the SIP. As I have
an intention to become a chartered accountant, I opted ECOVIS R. Kabra & Co. (Chartered Accountants),
a prominent chartered accountancy firm in Mumbai. This study gave me an opportunity to observe and
perform real world knowledge about the audit procedure, which is followed by the chartered accountancy
firm. In the internship period I could relate the theoretical knowledge of auditing to practical exposure.
The internship program is mandatory requirement for the student who are graduating under the faculty of
Commerce of Amity University Mumbai.
In the internship program I was engaged in a Head Office of ECOVIS R. Kabra & Co. (Chartered
Accountants), for eight weeks period. I have learned how an audit is conducted. 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 ECOVIS R. Kabra & Co.
(Chartered Accountants) from practical knowledge that I have observed.

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1.1 Objectives of the Study
 To have an overall idea about the Audit Procedures of ECOVIS R. Kabra & Co. (Chartered
Accountants).
 To gain practical knowledge and experience on how the firm conducts an audit and how audit work is
conducted in Bank and Companies.
 To identify about how to accumulate and process supportive documents to make an audit report.
1.2 Scope of Study
I have been assigned in ECOVIS R. Kabra & Co. (Chartered Accountants) 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.
b) Audit procedure, which is followed by the organization for conducting audit.
c) The Work Performed during the Internship-
 Concurrent Audit of Central Bank of India
 Income Seepage Audit of Corporation Bank
 Statutory Audit of Hooghly Ltd. & Industeel Ltd.

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1.3 Methodology
The present study has been made on the basis of both primary and secondary data.
Throughout the internship period I worked in Audit Department and earned experience. By working as a
member of this department, I had opportunity to learn and gather knowledge, to some extent I had access
to see company’s voucher, ledger, audit report and so forth. I communicated with the employees and
gathered the information.
1.4 Sources of Information
In order to prepare the assigned project paper I have collected necessary information from two types of
source as follows:
1.4.1 Primary sources information.
1.4.2 Secondary sources information.
1.4.1 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.
1.4.2 Secondary Sources Information
1. I have also collected secondary information like annual audit report, management audit report,
accounting system & audit working papers.
2. The information was obtained from various corresponding files of the firm.

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1.5 Limitations of 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.
Despite the study has achieved the sole purpose of doing the best work, there were certain limitations
existed during the internship period.
These limitations are as follows:
a) Time frame to perform internship was short.
b) Banks and Companies maintain some privacy while giving information, hence they do not disclose
many thing.
c) As the internship was the first practical experience, it was not possible for me to know all and
everything of audit procedure.
In spite of, all these limitations, I have tried to put my best effort as far as possible.

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Chapter 2. Organization’s Profile
2.1 Firm’s Profile
Name of the Firm : ECOVIS R. Kabra & Co. (Chartered Accountants)
Founded on : Year 1974
Address : ECOVIS R. Kabra Corporate Advisors Ltd., 515, Tulsiani
Chambers, Nariman Point - 400021, Mumbai, India.
Tel. : +9122 - 22044737
Fax : +9122 - 22850164
E-Mail : mumbai@ecovis.com
Internet : www.ecovis.com/mumbai
Local time : 09:30 AM – 18:00 PM – IST
Weekly Off : Sunday

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2.2 About the Firm
Ecovis is an internationally active consulting firm, which has its origin in Germany. In world-wide over
70 countries work more than 6,500 people. The core competencies are audit, tax and legal advice as well
as management consultation.
ECOVIS RKCA, are not here to just provide advice to help you through the labyrinth of various corporate
issues but are here to work with you to ensure that you move beyond winning and dictate the way
business is done in your domain. As corporate advisor the firm, very well understand their role as a
catalyst to fuel the growth of your dreams, but more than that it is their passion and dedication to help
their clients augmented with rich resource, experience and knowledge base which has worked wonders
for their customers.
It’s true the company are a financial and management consulting firm but as a part of their vision they
believe they are much more than that. They’re in the business of creating opportunities for you. With
India moving towards the growth path and is heading towards the one of the top three economies of the
world with in a decade, understanding of this market, laws, people, culture, tax structure in short the
“window of growth” for future becomes a very important part of any corporate or business plan. As an
expert on these matters they identify their selves as able partner of any national or international business
organization, ready to add another dimension to their business. Their best work is the result of being a
member of their team.
They provide services in the fields of audit and assurance, accounting, corporate finance, international tax
advisory, financial communications, market development and system certification.
RKCA was established in 1974 and has over 4 decades of history serving in Indian Sub-Continent. The
advisory group caters to clients across industry sectors. They have immense experience in dealing with
client segments they call MIG (Medium Enterprises, Inception Businesses & Government Organizations)

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2.3 Milestones of RKCA
1974 – Founded as professional firm.
1994 – After 1991 reforms, presence with Clients across 12 countries globally & incorporation of R.
Kabra Merchant Financing Limited with SEBI registration as Category IV – Advisors – Merchant
Bankers
1999 – International Tax and Advisory with focus on Financial Services & International Trade.
1997 – Evolved as R Kabra Corporate Advisors Ltd. (erstwhile R. Kabra Merchant Financing Limited)
2005 – ISO Certifications with JV of one of the largest UK based certification body (BM TRADA).
2007 – Joined Ecovis.
2010 – With offices in Lanka, Bangladesh, Nepal, Ghana, Delhi and Jaipur. Associates in Bangalore,
Hyderabad, Ahmadabad having strong SAARC presence.
2011 – Associated with R S M Associates Law firm with Pan India Service Delivery for Legal Services
2.4 About Clients
They cater to various overseas clients in more than 30 countries spinning in various industries and high
net worth individuals, countries such as Nepal, Sri Lanka, Bangladesh, Singapore, Bangkok, Indonesia,
Hong Kong, China, Malaysia, Mauritius, Dubai, Germany, Poland, UK, Switzerland, Italy, Malta,
Cyprus, USA, Japan, etc.
List of industries where they cater their services:
 Casting & Trading
 Catering
 Cement
 Charities
 Computers
 Cotton
 Electronic
 Exhibitions
 Ferrous & Non Ferrous Scrap
 High Security Vehicle Number Plates
 Hospital & Health Care
 Housewares Products
 Industrial Gases
 Iron & Steel
 ISO Certifications
 IT & Software
 Leather Garments
 Management Consulting
 Oils & Chemicals
 Paper & News Print

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 Pharmaceuticals
 Real Estate
 Security Systems
 SEZ & Tax free zones
 Shares & Stock Brokers
 Ship Breaking
 Solar Energy
 Textile & Ready-mades
 Tobacco & Snuff
 Trading
 Transport & Infrastructure
 Wire, rope, cable & Conductors
2.5 Services Provided
2.5.1 Audit and Assurance
2.5.2 Accounting
2.5.3 Corporate Finance
2.5.4 Financial Communications
2.5.5 International Tax Advisory
2.5.6 Marketing Development
2.5.7 System Certification
2.5.1 Audit and Assurance
 The Audits, which are statutorily required, are conducted by a member firm for which information
will be furnished on request in accordance with Indian Regulatory Requirements
 Voluntary and Statutory Audits of Annual Accounts and consolidated financial statements
according ISA
 Special Audits as required by Legislation
 SOX Audits of subsidiaries of global/listed companies as support for the group auditor
 Review of Financial Statements
 Support of Acquisition or formation of subsidiaries or permanent establishments
 Financial Due Diligence
 Valuation of enterprises as a whole
 Strategic development and monitoring there of feasibility studies, SWOT analysis, location
analysis, ABC analysis

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2.5.2 Accounting
 Financial Accounting and Payroll accounting, International Accounting according to IFRS and/or
US-GAAP
 Improvement projects concerning client’s accounting system
 Transformation Clients accounting system from local GAAP to IFRS
 Accounting training for client’s staff (including IFRS)
 Development and implementation of group Accounting Manual
 Interim Financial Statements
 Annual Balance sheet
 Preparation of consolidated financial Statements
 All types of Tax Returns
 Tax Statements for international employees (expatriates)
 Monthly Quarterly and Annual VAT report
 VAT Reimbursements for foreign companies
 Development, Implementation, interpretation of monthly/quarterly reporting systems
 Development, implementation of group reporting systems
 SOX implementation projects for subsidiaries of global/listed companies
 Cash flow management and controlling
 Implementation and Support of Risk Management
 Implementation of Cost Accounting and Transfer Pricing Systems
 Administrative Services for Foreign Parent Companies (Local Directors/Secretary, Registered
Office, Nominee Shares, Start-up consultation)
 And many more……..
2.5.3 Corporate Finance
 Mergers and Acquisitions
 Disposals
 Joint Ventures
 Acquisitions
 Rearranging Corporates
 Merger

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 Solutions related to problems of
Business Operations
 Banking Relationship
 Independent Directors
 Corporate Preparation
 IR and PR
 Planning of Business
 Services
 Exit Planning
 Strategic Planning
 Pre-flotation’s Support
 Tactical Planning
 Litigation Support
 Pre-flotation Planning
2.5.4 Financial Communications
 Publicity, Media Relations
 Board Meetings
 Shareholder Meetings
2.5.5 International Tax Advisory
 Advice on Financial Reorganization
 Advice on Business Succession
 Investment Appraisal
 Venture Capital Negotiations
 Financial Planning
 Advice to public Administration and
Public Sector Businesses
 Advice on Restructuring
 Advice on Privatization
 Advice on Financial Reorganization
 Advice on Business Succession
 Advice on Financing and Investment
Banking
 Commercial and corporate law
 Private International Law
 National and International Law
 Competition Law
 Law Due diligence
 Advice on purchase and sale of
companies, mergers, joint ventures,
management buy-outs and buy-ins
2.5.6 Marketing Development
 Marketing Development
 Marketing Strategy Development
 Marketing Planning
 Guided Marketing Program
Implementation
 Marketing Performance Evaluation

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 Segmentation Services
 Positioning Services
 Brand Names
 Product Strategy
 Pricing Strategy
 Distribution Services
 Launch Strategy
 Sales Strategy
 Advertising Services
 Relationship Services
 Research
 Franchising Services
 Training Services
 Management
 Branding
 International Marketing
 India Entry Strategy
 Performance Management
 Business Setup
 Opportunity Assessment
2.5.7 System Certification
2.5.7.1 System Certification
 Quality Management System – ISO 9001
 Environmental Management System – ISO 14001
 Health and Safety Management System – OHSAS 18001
 Information Security Management System – ISO 27001
 Product Certification like CE Marking, Technical Approvals, etc.
 Personnel Certification – competence of timber grading operatives and fire door installers
2.5.7.2 Trainings
 ISO 9001:2008 Lead Auditor Training Course
 ISO 22001:2005 Food Safety Implementation Course
 ISO 27001:2005 Implementer Training Course
2.6 What people say about them-
"Tailored services and in-detail documentation is cost and time effective way of
solving problems"

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Chapter 3. Conceptual Framework
3.1 Audit Procedure in India
3.1.1 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.
3.1.2 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.
3.1.3 Audit 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.

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3.1.4 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.
o Planning.
o Collection of evidence.
o Controlling and recording.
o Review and opinion.
3.1.5 Audit Process
Planning
In order to assist in a disciplined approach to planning and to ensure compliance with Indian Standards
on Auditing (ISA) (*Refer Annexure for details), 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
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.
Planning
Collection
of Evidence
Controlling
& Recording
Review &
Opinion

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3.2 Audit Procedures Followed By Ecovis R. Kabra & Co. (Chartered
Accountants)
The primary goal of ECOVIS R. Kabra & Co. (Chartered Accountants) 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).
ECOVIS R. Kabra & Co. (Chartered Accountants) 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.
3.2.1 Engagement Procedures
Before discussing the Audit Procedures followed by ECOVIS R. Kabra & Co. (Chartered
Accountants), I will try to focus on the engagement procedures through which ECOVIS RKCA is
engaged/ recruited by the client to perform the audit. Before starting the audit work, some letters are
exchanged between ECOVIS RKCA and clients.
ECOVIS RKCA faces three kinds of situations in engagement process:
 Engagement with new client.
 Engagement with existing client
 Directly appointed by the client.

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3.2.1.1 NEW CLIENTS
In case of new clients, four letters are exchanged between ECOVIS R. Kabra & Co. (Chartered
Accountants) and client including acceptance letter of appointment at the time of involving with the
new client.
Following stages are followed by both ECOVIS R. Kabra & Co. (Chartered Accountants) and client:
STAGE – 1: Evaluating the circulars published by the Clients.
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 attachment. It assures that if ECOVIS R. Kabra & Co. (Chartered Accountants) audits
client’s firm, they will supply the formal terms of reference/audit mandates to govern the conduct of
audit.
STAGE – 2: Proposal letters are sent to various clients
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. ECOVIS
R. Kabra & Co. (Chartered Accountants) 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
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 ECOVIS R. Kabra & Co. (Chartered Accountants) the client company
understands the nature of the audit (such as independent, external) to assess the organization’s internal
control system in administering the matter of audit.
STAGE – 4: Sending Confirmation Letter
After receiving the acceptance letter from the client, ECOVIS R. Kabra & Co. (Chartered
Accountants) provides confirmation letter describing the firm’s willingness to work with the client.

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3.2.1.2 EXISTING CLIENTS
 Three letters are exchanged between the ECOVIS R. Kabra & Co. (Chartered Accountants) and
client
 Willingness letter for reappointment: In this letter ECOVIS R. Kabra & Co. (Chartered
Accountants) wants to audit this year. It can request to increase audit fee or change some other
conditions.
 Client sends appointment letter.
 ECOVIS R. Kabra & Co. (Chartered Accountants) accepts this appointment.
3.2.2 Audit Procedures
There are seven steps involved in the procedures that come one after another. The procedures followed
by the ECOVIS R. Kabra & Co. (Chartered Accountants) are basically inspired by the approaches
suggested by ICAI in Audit Practice Manual.
Steps are as follows:
o Identity Overall Goals
o Gather & Evaluate Initial Information
o Assess General Risks
o Assess Account Specific Risk
o Develop Efficient And Effective Audit Plan Program
o Conduct Audit Testing
o Evaluate And Communicate Audit Results

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Chapter 4: Training Areas
In the course of my Internship period, I was assigned as an audit staff for performing the audit of -
A) Head Office of Central Bank of India
B) Branch Office of Corporation Bank,
C) Hooghly & Industeel Ltd.
D) Nodus Ltd.
ECOVIS R. Kabra & Co. (Chartered Accountants) was being engaged to audit these Institutions from
last many years. There they send an audit team where I was one of them. I am giving a small overview
on the audits conducted.
4.1 Central Bank of India – Concurrent Audit
Audit Conducted in Central Bank of India, Head Office at Nariman Point, was a Concurrent Audit, I
Handled concurrent audit for two months. As it is a Head office of Central Bank of India, All
Administration work of every Branches, spread all over India is controlled and Managed by this point.
SCOPE OF WORK
Scope of Concurrent audit of General & Administration Department covers following functions;
A. Various Functions
1. Expenditure Control & Account
2. Premises
3. Legal
4. Architect
5. Security/ Transport
6. Printing and Stationary
B. Concurrent on Department compliance on CVC guidelines, statutory obligations (Income Tax, Municipal
Corporation, State Govt. Rules /directives and other Legal obligations by the Dept).
C. Compliances of directives of the Board/Sub Committee of the Board/Top Management.

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4.1.1 Job Responsibility
As I was an intern, job responsibility varies from client to client. Thus, my job responsibilities
while conducting Concurrent Audit in Central Bank of India are as follows:
4.1.1.1 Gathering Information from the respective Departments mentioned below:
 Premises Department
In Premises Department, I was given the Responsibility to gather the information regarding the
position of Lease Deeds & Litigation i.e. Expiry of the lease deeds. We have to specify about the
Premises and the Lease Deeds Statuses in our audit report after confirming the same with the
respective department.
There was 416 offices which was of Government Bodies / owned where lease deeds was not
required and 4836 offices which operates from rented premises and among these 4645 offices,
lease deeds was in force, 191 offices lease deeds were expired and it comes to a total of 5252
Offices.
No. of Offices as on 30th
April 2018 whose lease deeds were going to expire in next 9 months
was 143 offices. And Out of 188 premises whose lease deeds have expired, there are 39 premises
against which suit is filed. Refer the Annexure I for more detail.
 Details of Centralized Rent Report Payment Zone-wise.
For this section I was told to collect the information regarding the following things, according to
their Zones-
 Total No. of properties /Landlords as per ZO List was 6333.
 Total Rent was Rs. 16,72,29,877.30
 No. of Net Rent paid to Landlord AC with TDS, Attracted AC without TDS amount was 2136.
 Amount of Net Rent paid to Landlord AC with TDS, Attracted AC without TDS amount was Rs.
6, 55, 21, and 463.46.
 No. of Rent Upload able without TDS & GST attracted Properties/Landlords was 3999.
 Amount of Rent Uploaded without TDS & GST attracted Properties/Landlords was 3, 08, 22,
802.53 Rs.

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Total No. of Landlords A/c to be uploaded was 6135 and Total Amount of Rent to be Uploaded
was 9, 63, 44, 265.99 Rs.
(Refer Annexure II for In-Depth Details.)
 List of Properties where Deeds have not been Registered
In this I had to collect the list of Properties where deeds have not been registered according to
their Zones, the Name of the Property is also to be included and after this process, the Respective
Departments has to give their Comments regarding the Properties Status.
There is Six Zones i.e. MMZO, Pune, Patna, Guwahati, Central Office, Chennai. All Zones
have many properties. Refer the Annexure III for the Names of the Property, Zone-wise and for
its Status.
 Legal Section
The Legal Department has to firstly provide the information about the Pending Legal cases filed
by the bank against the Parties. Then secondly they have to provide the information about the
Pending Legal cases, zone wise. We got the Information that there is one legal case filled by the
Bank against the parties and that is pending. Zone wise there was 111 legal cases that were
pending in the current month that was 30th
April 2018.
 Advances Outstanding more than three months
I was referring the Register No. 19 to know the status of Debit/Advances entries that are long
outstanding (more than three months) in S/L accounts on account of payment to
contractors/suppliers. If it is paid up then I has to cancel it out from our Report, if it is not then
we have to include it and even I had to check is there any new outstanding which are now three
months older. And after collecting and verifying all the Required Information, I had to ask the
status of this outstanding, basically the Department Comment on several Outstanding. I have
shown few entries below, refer Annexure.
 Amount Payables more than Six Months Old.
For this Section I Referred the Register No. 20 to know the status of Amount Payable by the
Bank to various Parties which are more than six months old this was the Entries Pertaining to
various Departments.

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The same procedure was followed for this as followed for Advances Outstanding, but here I went
to every individual Department to know the status of the Amount Payables and to get their
Comments. I have shown few entries below, refer Annexure.
 Security & Transport Section
The Information Regarding the No. of Vehicle Disposed or Sold off by the Bank for the period
and also the information about the Insurance policy expired in the Period were mentioned under
this section in the Audit Report, and the security arrangements was reported Quarterly only.
Refer Annexure.
4.1.1.2 All the Above Required information was given by the Respective Departments and I
had to verify all that information whether they are true and accurate or not. To conduct a
Concurrent audit of one month it took two weeks. After all the information Gathered we finally
drafted the Concurrent Audit Report for the specific Months.
4.1.1.3 Vouched many files (Refer annexure for list of the files) with the data available on the
bank server, by the receipts or voucher in their respective files, Checked and Calculated GST
rates applied & Tax charges and the amounts of the bills, and also checked whether the amounts
are tallying with the amount entered on the bank server or not.
4.1.1.4 Preparation of Audit Reports
After the Completion of the Audit Process of Central Bank of India , I was assigned with the
another task that was to prepare the Concurrent Audit Report, the Compliance Report of Irregularities,
Audit Memo, “Audit Confirmation and Discussion with Branch” letter. I prepared this by referring the
previous month reports. I used all the information collected during the audit from the bank. Concurrent
Audit Report contains every single information required in the report. Compliance report only contains
the Irregularities pertaining to the Current month and the previous year. So In this section I substituted
all the information of Outstanding and Advances Payable to other Parties by the Banks extracted from
the Register No. 19 & 20.
(Refer Annexure Section) Attached Figure shows the Front page of Concurrent audit report and
the next figure is just a part of the Concurrent Audit Report, Signifying the report Structure.

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4.2 Corporation Bank – Income Seepage Audit
Conducted the second Audit in Corporation Bank, Branch Office at Vile Parle. I and my Partner
Conducted the Income Seepage Audit in this Bank. This Audit was a very Tedious and Time
Consuming Audit as we have to go till depth of every point what we get to know an income Seepage
Audit is to documents all revenue that a business receives.
Being an income auditor we had to maintain a journal or balance sheet that tracks all incoming funds.
We may code each entry so that the source can be identified at a later date. For example, our notes may
indicate that a specific transaction was initiated by customer Smith and that payment was made by
credit card. At the end of the business day or end of the billing cycle, we reconcile the balance sheet
with receipts to ensure transactions are accounted for. When discrepancies are discovered, we lead an
investigation to resolve the issue. In addition, we prepare income statements for presentation to
management.
While checking the accounts not all the entries were checked, only a limited number of entries were
checked, it is called Test checking. Only a sample of entries were checked, the size of the sample
depend on different matters like materiality level, efficiency of internal control system,
possibility occurrence of error and other condition.
Apart from applying test check method some transactions of unusual nature or amounts were also
checked to find out errors or frauds. If the errors in an account exceeded from the expected level then
that account was thoroughly checked and the method of test checking was abandoned for that account.
After checking ever entry a tick mark was put against the entry to show that the entry has been
checked.

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4.2.1 Scope of the Income Seepage Audit
 Processing Charges
 Commitment Charges
 Inspecting/Unit visit Charges
 Equitable Mortgage Charges
 Security Redemption charges
 CERSAI charges
 Legal Charges
 Charges for amendment of sanction
terms/revalidation/rephasement
 Penal charges for the reasons such as
default in repayment, non-
submission of financial statements,
Stock/Book Debt statements,
diversion of funds etc.
 Seepage is also detected on account
of failure to carry out the interest rate
revisions
 Non-linking of interest to Base Rate
 Non collection/short collection of
commission on BGs/LCs
amendment charges
closing charges and other service
charges related to remittance of
funds and Locker rentals.
4.2.2 Job Responsibility
 Interest Calculation on Current Accounts and Other business Accounts including the Closed
Accounts.
 Verification of the Bank Guarantees issued by the Bank, Ascertaining the Commission charges
and Issue Charges levied by the Bank
 Verification of the amount to be recovered in Bank Guarantees
 Cheque Charges charged from the customer should be verified
 Verification of Service taxes rate applied on different areas.
 Ascertaining the Interest Rates on several Accounts
 Verification of the Letter of Credits offered by the Bank
 Checking the application of the Corp Schemes organized by the Banks
 Ascertainment of the application of Offers on Corp Schemes issued by the Zonal Office is
made available to the Customer or not.
 Interest rate verification on Term Loans
 Ascertainment of Processing Charges and Fees

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4.2.3 Calculations on Excel
 The Below given figure is about the List of Bank Guarantees Accounts Extracted from
Finacle software for Calculation of the Commission charged and the rates applied even
for calculating the Issue Charges. The Below Figure also signifies the calculation
carried out for the Bank Guarantees.
Figure 1 Calculation of Bank Guarantees of I Link

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 The Below Figure represent the Calculation of Cheque charges charged by the Bank on
several Customers, During the calculation we found that they are charging 5 Rs. Per
Leaf but according to the Circular provided by the Zonal office it Should be 4 Rs. Per
leafs , We considered the service tax too, but still the value was not convincing one. We
even communicated with the zonal office regarding this issue and we even wrote this in
our query Sheet. This issue was passed to the Higher Authority for better Clarification.
Figure 2 Calculation for cheque charges.

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 Below is the Query Sheet regarding the Cheque Charges submitted to higher authorities
Figure 3 Query Sheet for cheque charges.
 Below is the Query Sheet for the Bank Guarantees extracted from I link Software
Figure 4. Query Sheet for the Bank Guarantees of I link

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 Below is the Query Sheet for the Bank Guarantees extracted from Finacle Software
Figure 5 Query Sheet for the Bank Guarantees of Finacle

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 Below is the Query Sheet Related to Term Loans extracted from both the Software, in
this I had the doubt regarding the interest rate applied in this accounts.
Figure 6 Query Sheet for the SDL Accounts
 We even had verified to the Stock of the Bank but this part was assessed by my
senior, I was just coordinating to him accordingly

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 Below is the Calculation on Several Bank Guarantees Account extracted from Finacle
Software, over here I calculated the Commission on BGs, the SFMS charges (A
charge for the SMS facility sent by the Bank to the Customer regarding to any
updates), Issue charges that is also can be said as Processing fees for the BGs, we
faced lots of Queries in this as every aspect of this was very new and hard to
understand. Even I got to know how Quarters are found and applied in the Banking
field for various calculations.
Figure 7 Calculation on Bank Guarantees Account of Finacle

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 Below is the Rough draft of Query sheet submitted to the manager of the Bank for
continuing further after clarification.
Figure 8 Rough draft of Query sheet
 Extracted the List of Advanced accounts opened during the specified period of
audit from I Link Software.

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 Below is the Audit Report of Seepage of Income created by me after the
completion of Audit and this was submitted to the Higher Authority of the Bank
for the Confirmation of the Draft Report.
Figure 9 Rough Draft of Audit Report

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Figure 10.1 & 10.2 Second Part of Draft showing the total seepage.

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4.3 Hooghly & Industeel Ltd. – Statutory Audit
During my Last week of internship, I was assigned with the task to conduct a Statutory Audit of
Hooghly & Industeel Ltd, at Masjid Bunder. This companies are the old parties of ECOVIS R. Kabra
& Co. (Chartered Accountants). Every year our Firm conduct their Audit. They are basically a
shipment company, they Manufacture and Sell the Ships. Their Manufacturing Unit is in Gujarat, Over
here In Mumbai they are having a Administrative office, So all the Data related to their Company is
send over here from Gujarat office and we do the audit based on that data and even referring to the past
years Report.
I performed various activities during this Audit, under the supervision of my Senior Articled Assistant.
4.3.1 Task Undertaken
-The vouching of Purchase and Sales by referring the Leger file of both and also verifying it with the
actual Voucher & Receipts.
-Calculation of GST applied on both Purchase & Sales and verifying it with the Ledger file with
reference to the Actual Receipts
-TDS wherever was applied was to be ascertained with respect to their rates to be charged and checked
whether the challan is available or not.
-TCS are the tax applicable only on scraps or if Declaration (Form 27C) is submitted by the party, so
need not have to be charged. Checked whether the challan is available or not. I calculated TCS and
verified it with respective rates charged actually.
- Collected the Declaration wherever it was required & the necessary documents from the respective
person of the company.
- Verified the Unsecured Loans, other loans and calculated the interest on that. Even wrote the queries,
wherever more clarification was required.
- Verified the Wages paid to the workmen and the bonuses paid to them with the help of ledger and the
Bank statements
- Verified all the transactions with their receipts and also with the Bank statement.
- Worked on the Bank Reconciliation statement, with the help of the past periods and reconciling it
again.

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-Prepared the Final Balance Sheet of the Company, the Profit & Loss Statement, Notes to Account,
Working of Depreciation, etc.
-Verified the GSTR3 values with purchase and sales and verified the Tax (CGST and SGST) are
applied properly or not.
 Below given figure shows the calculation of Loan Interest of the Industeel Company for the
verification process. I referred the Ledgers and past record for verification. The Queries
related to this was reported in the Query sheet for more clarification.
Figure 11: Calculation of Loan Interest of Industeel Ltd.

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 Below given figure shows the calculation of Unsecured Loan Interest of the Industeel Ltd. for
the verification process. I referred the Ledgers and past record for verification. The Queries
Figure 12: Calculation of Unsecured Loan of Industeel Ltd.

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 Below given figure represents the query sheet of Unsecured Loan Interest & Loans of the
Industeel Ltd. for more clarification, after referring the Ledgers and past record.
Figure 13: Query sheet of Unsecured Loan & Loans for Industeel Ltd.

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 Below given figure shows the calculation of Unsecured Loan Interest of the Hooghly Company
for the verification process. I referred the Ledgers and past record for verification. The Queries
Figure 14: Calculations of Unsecured Loan & Loans for Hooghly Ltd.

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 The Financial statements of Industeel Ltd, was made after the verification process was
completed. Financial statements of Hooghly Ltd. was made with coordination of Senior as my
internship was going to complete soon. The financial Statements Contains (Refer Annexure) :
 Balance Sheet
 Profit & Loss Statement
 Notes to Accounts
 Working of Depreciation
 Income Statement
4.3.2 Software Operated
During my Internship Period I got different Exposures and one among those is Technical Exposure,
I worked on few Software during the training process. The software was:
4.3.2.1 Tally
I was doing vouching from the Balance Sheet of a company and verifying from the Profit &
loss Statement Made under the Tally.
4.3.2.2 Microsoft Excel
During my Internship I learned a lot of Excel as I majorly worked on Excel. I applied different
Formulas, Calculated several Values, Created the data on excel, Created the Income Audit
Report on excel, etc.
4.3.2.3 Microsoft Word
This is very Basic Software which I used for my every Work, wherever needed. I created the
data and maintained the records of several aspects of the audits in Word. The Concurrent audit
Report was made by using Microsoft word.

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4.3.2.4 Finacle
Finacle is a core banking product developed by the Indian corporation Infosys that provides
universal digital banking functionality to banks. In August 2015, Finacle became part of Edge
Verve Systems Limited, a wholly owned product subsidiary of Infosys. It was implemented in
Corporation Bank on 26 July 2018, All the Data From the old software i.e. I Link was
transferred to new software (Finacle)
It was very new Software to Handle, I was not aware about it. I worked on Finacle during the
Corporation Bank-Income Audit. It was very hard to understand and harder to gather the
information from it but after proper understanding about the software, I was able to handle it
very efficiently.
4.3.2.5 I Link
I link was an old Software used by the Corporation Bank until 25 July 2018, after this date they
installed Finacle Software and started working on that Software, I link was Easy to handle
according to my experience and the information was available very easily.

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4.4 Nodus Ltd. - Vouching
My first Audit was of Nodus Ltd., assigned to me in the first week of Internship. I had to vouch the
files provided by them that contains the Receipts, Vouchers, Bills, etc. as a supportive document for the
respective transaction. I had to verify the tally entries made in the Profit & Loss statement of the
company for whole year.
During the vouching process, I encountered with many doubts and points where I need to get more
clarification, for this purpose I prepared the Query Sheet. Even I faced some situation where I can’t
consider some irregularities as a query, as it was like a recommendation to the company, suggesting
about the respective points. For this particular factor I prepared the remark sheet also, which was later
on forwarded to the company for further clarification and for considering the mentioned remarks.
I even got the task to verify whether TDS return have been filled or not through verifying the challan
and also verifying with the ROC compliance form No. 8, 11 of Nodus International. It was just one
week work, which I completed very efficiently and received a good remark for my work from the
Executive of the firm.
I have attached the data related to my work. Which signifies the Nodus vouching details of every
transaction that I have vouched and the query sheet that I have prepared was as follows:

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1). I was entering the transactions details while vouching the Bills & vouchers of Nodus Ltd. in excel
sheet simultaneously, for the reference in future, I mentioned every details regarding to it and if I
suspect any abnormal part for any transactions I used to enter that in the sheet to get it cleared from the
senior. Below is the glimpse of it.
Figure 15: Vouching details of Nodus

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2). I prepared the query sheet where we needed some supportive documents for the transactions and
told by the seniors, or there has being some other issue was mentioned in this sheet, which further was
passed to the company to give their opinion on the queries entered.
Figure 16: Query details of Nodus

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3) I even made simultaneously the Remark sheet which is basically a remark for few transactions.
Where we can’t raise a query, but still it was not satisfactory and we needed further clarification from
the company. So that transaction detail was entered in this sheet.
Figure 17: Remark Sheet of Nodus

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4.5 Other Task Performed
 Typed the Hindi article written by one among the partners on Indiatyping.com, It was an
Article on Flipkart Amalgamation with Walmart.
 Filled up the Empanelment form for Canara Bank, with details provided by my senior about our
firm.
 Filled up another Empanelment form for Punjab & Sind Bank, with details provided by my
senior about our firm.
 Went through firm emails regarding the tender published by several companies to choose the
best Audit assignment and apply for it.
 Converted articles from pdf to Word document.
 Recreated the resume of one partner and updated the LinkedIn profile.
 Researched about the Deductions in Tax, Slab rates, Surcharge rate for 2018-19,
 Created an Excel Sheet of the Client Name list of New Delhi assigned by the partner of the
firm.
 Went to Reserve Bank of India for issue regarding penalty query over Foreign Exchange
Money from different companies.
 Created the Share Certificate for 6 persons as a word file, which was verified by the Executive.

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CONCLUSIONS
ECOVIS R. Kabra & Co. (Chartered Accountants) internship program has offered me a great
opportunity to grow and develop. It has propelled me to be able to overcome challenges and develop
my career. I learnt extensively about Audits , the importance of audit, Learn efficiently MS-Excel, got
aware about many concepts such as Bank Guarantees, Cheque Charges, Issuing charges, etc.
The Program has enhanced my knowledge and skills as well as improved my professional ability to
work in a multicultural environment. Working in ECOVIS R. Kabra & Co. (Chartered Accountants)
as an intern was not only an honor and privilege but a lifelong experience that will forever shape my
professional life. This was a great experience.
The Executive Director has inspired me to serve rather than expect to be served by
Sub-ordinates. I am very appreciative of this opportunity and forever grateful to ECOVIS R. Kabra &
Co. (Chartered Accountants) for giving the opportunity to not work as an intern but also enabled me
to enhance my abilities, to take the responsibility and accomplish it. This Internship has boost my
confidence to work with responsibility and accomplish every assignment efficiently.

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BIBLIOGRAPHY / REFERENCES
1) Ecovis RKCA (2014), Company Profile, Available from: http://ecovisrkca.com.
2) Ecovis RKCA (2014), Company Website, Available from: https://www.ecovis.com/in/.
3) Dheeraj Rathi (July 9, 2015), ECOVIS Fuller RKCA, Available from :
https://www.slideshare.net/DheerajRathi1/fuller-rkca-introduction.
4) Karuna Gautam (2014), Leakage in Bank Audit, Available from :
https://www.caclubindia.com/forum/revenue-leakage-in-bank-audit-279310.asp
5) Steven Bragg (August 16, 2018), Concurrent audit techniques, Available from:
https://www.accountingtools.com/articles/2017/5/14/concurrent-audit-techniques
6) Dezan Shira & Associates' (March 28, 2014), India Briefing, An Introduction to India’s
Audit Process: New Issue of India Briefing Magazine, Available from :
https://www.india-briefing.com/news/issue-india-briefing-introduction-indias-audit-
process-8150.html/
7) My Daily Dairy of Internship for the whole period.

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ANNEXURES
ANNEXURE I - Details of the Standards on Auditing (SAs)
1. Basic Principles Governing an Audit (SA 200)*
2. Objectives and Scope of the Audit of Financial Statements (SA 200A)*
3. Terms of Audit Engagement (SA 210)
4. Quality Control for Audit Work (SA 220)
5. Audit Documentation (230) (Revised)
6. The Auditor’s Responsibility to Consider Fraud and Error in an Audit of Financial Statements (SA
240) (Revised)
7. Consideration of Laws and Regulations in an Audit of Financial Statements (SA 250) (Revised)
8. Communication of Audit Matters with Those Charged with Governance (SA 260) (Revised)
9. Responsibility of Joint Auditors (SA 299)
10. Planning an Audit of Financial Statements (300)
11. Identifying and Assessing the Risk of Material Misstatement through Understanding the Entity
and its Environment (SA 315) (Newly issued) **
12. Audit Materiality (SA 320) (Revised)
13. The Auditor’s Responses to Assessed Risks (SA 330) (Newly issued) **
14. Audit Considerations Relating to Entities Using Service Organizations (SA 402) (Revised)
15. Evaluation of Misstatements Identified during the Audit (SA 450) (Newly issued)
16. Audit Evidence (SA 500)
17 Audit Evidence - Additional Considerations for Specific Items (SA 501)
18. External Confirmations (SA 505)
19. Initial Engagements – Opening Balances (SA 510) (Revised)
20. Analytical Procedures (SA 520)
21. Audit Sampling (SA 530) (Revised)
22. Auditing of Accounting Estimates, Including Fair Value Accounting Estimates and Related
Disclosures (SA 540) (Revised)
23. Related Parties (SA 550) (Revised)
24. Subsequent Events (SA 560) (Revised)

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25. Going Concern (SA 570) (Revised)
26. Written Representations (SA 580) (Revised)
27. Using the Work of another Auditor (SA 600)
28. Relying Upon the Work of an Internal Auditor (SA 610) (Revised)
29. Using the Work of an Expert (SA 620)
30. The Auditor's Report on Financial Statements (SA 700)
31. Comparatives (SA 710)
32. Engagements to Compile Financial Information (SRS 4410)
33. Engagements to Perform Agreed- upon Procedures Regarding Financial Information (SRS 4400)
34. Engagements to Review Financial Statements (SRE 2400)
35. The Examination of Prospective Financial Information (SRE 3400)
NOTE: 1
* Presently, SA 200, “Basic Principles Governing an Audit” and SA 200A, “Objective and Scope of
an Audit of Financial Statements” correspond to International Standard on Auditing (ISA)
200 (Revised and Redrafted). Both the SAs are currently being revised in the light of the ISA 200
(Revised and Redrafted). Post revision, the principles covered by SA 200 (erstwhile AAS 1) and SA
200A (erstwhile AAS 2) will be merged into one Standard, i.e. SA 200.)
** SA 315 & SA 330 – become effective in April, 2008. For November 2009.
The Standard on Auditing (SA) 400, “Risk Assessments and Internal Control”, SA 310, “Knowledge
of the Business”, and SA 401, “Auditing in a Computer Information Systems Environment”, issued in
June 2002, April 2000 and January 2003, respectively, would stand withdrawn.
NOTE: 2
Newly issued SA 450 “Evaluation of Misstatements Identified during the Audit” effective for all
audits relating to accounting periods beginning on or after April 1, 2010.

5 9 | P a g e
ANNEXURE II
Premises Department
1. Position of lease deeds and litigation
Position of monthly report should be placed in respect of lease deeds expiry of the lease deed. We
furnish below the position of expired lease deeds as on 30.04.2018.
Sr.
No.
Particulars
No of offices as
on 31.03.2017
No of Offices as
on 09.03.2018
No of Offices as
on 30.04.2018
1 Premises
a No Rent/ Govt Bodies/ Owned 437 420 416
b
Office operating from Rented
Premises
4637 4832
4836
Total 5074 5252
5252
2 Lease Deed Status
A
Owned or Government Bodies
(No Lease Deed required)
437 420 416
B
Office where Lease Deed are in
force
4457 4652
4645
C Lease Deed expired 180 180 191
Total 5074 5252 5252
3 Total Expired Lease Deed 180 180 191
4
Lease Deed expiring in the next
9 Months
110 126 143
Upto 1 Year 87
Between 1 to 2 Year 36
Over 6 Year 33
Total 191
Note: 1. (i) Out of 188 premises whose lease deeds have expired, there are 39 premises against
which suit is filed.
(ii) As per GAD, out of 188 premises whose lease deeds have expired, there are:
a) 138 premises which are under negotiations.
b) 13 premises which are under internal disputes/not traceable.
c) 16 premises where the landlord has asked to search for an alternate premises as the landlord
is not agreeable.
c) 9 premises where the bank has asked to search for an alternate premises
d) 10 premises where the proposals have been sanctioned but pending for execution of leases
deeds.
e) 02 premises where the proposals have been sanctioned and proposed for modification.
Note: 2. No rent agreement is provided to us for verification since the same is maintained at
respective Regional office.

6 0 | P a g e
ANNEXURE III
Details of Centralized Rent Report Payment Zone-wise.
Sr
.No
.
Zone
Total No. Of
propertiesLandlo
rds as per ZO List
Total Rent
No. Of Net
Rent paid
to Landlord
AC with
TDS
attracted
AC,
without
TDS
Amount
Amount of
Net Rent paid
to Landlord
AC with TDS
attracted AC,
without TDS
Amount
No. of
rent
uploada
ble
without
TDS
&GST
attracte
d
properti
es/
Landlor
ds
Amt. Of rent
uploaded
without TDS
&GST
attracted
properties/lan
dlords.
1 Ahmedabad 521
1,31,07,568.26 181 61,99,937.50 303 36,55,634.16
2 Bhopal
642 88,16,356.36 168 51,18,254.25 461 29,25,431.88
3 Chandigarh
557 1,22,26,626.52 227 68,85,863.50 297 27,13,326.52
4 Chennai
392 1,20,62,033.91 182 60,97,163.80 159 12,14,315.00
5 Delhi
526 3,25,83,293.84 284 95,11,142.81 154 15,80,848.37
6 Guwahati
0 0.00 52 11,35,015.46 231 16,83,958.47
7 Hyderabad 498
1,33,95,256.25 211 61,72,559.66 238 21,61,711.24
8 Kolkata 612
1,00,94,394.90 116 33,13,023.14 464 34,19,407.42
9 Lucknow 727
1,09,23,200.34 232 59,11,333.17 478 34,12,312.17
10 MMZO 305
3,33,86,683.92 130 57,96,419.00 58 5,58,112.62
11 Patna 732
67,39,743.41 120 28,77,264.67 596 30,85,991.43
12 Pune 667
1,10,69,262.30 193 54,22,999.50 451 30,83,657.75
13 Raipur 154
28,25,457.30 40 10,80,487.00 109 13,28,095.50
TOTAL 6333 16,72,29,877.30
2136 6,55,21,463.46 3999 3,08,22,802.53
Total No. of Landlords a/c to be uploaded : 6135
Total Amt of Rent to be
uploaded:
9,63,44,265.99
Notes:
1. The rent payments on which GST is attracted are directly paid by the respective Regional/ Zonal/ Branch office.
2. The rent payments on which TDS is attracted, net payment is done by GAD to the respective landlord’s account and
TDS will be paid by the respective Regional/ Zonal/ Branch office to the credit of the Government.

6 1 | P a g e
ANNEXURE IV
List of Properties where Deeds have not been registered
Sr.
No.
Zone Name of the property Dept. Comment
1. MMZO Shelter Enclave, Panaji Bank is holding the shares of the Society with the bank’s name in the
records of the society. There is no need for registration as holding the
shares of the society is sufficient evidence of ownership.
Belapur Branch Application for Registration of Lease Deed has already been submitted
to CIDCO, Belapur on 13th
November, 2016
2. Pune Plot, MIDC
Chikarthana
Aurangabad Regional office had applied to MIDC for Building
Completion Certificate. After receipt of certificate, NOCs will be
obtained from Departments of State Government of Maharashtra and
thereafter application for registration will be made.
3. Patna Jamshedpur, main
Branch
Lease has been extended by the Tata Sons upto the year 2026. Formal
Registration of Lease Deed is pending due to dispute between Tata Sons
& Government of Chhattisgarh.
4. Guwahati Bangagarh, Pan Bazaar
Market
Property owned by erstwhile Purvanchal Bank, which was merged with
our Bank. As per the provisions of The Banking Companies
(Acquisition and Transfer of Undertakings) Act, 1970 Act No. 5 of 1970
all the property of erstwhile Bank will be the property of the Acquiring
Bank. Bank had applied for mutation in the name of Bank to the
Revenue Authorities.
5. Central
Office
Chandermukhi, 9th
Floor, A Wing,
Mumbai.
Bank is holding the shares of the Society with the bank’s name in the
records of the society and the bank is payingtax. There is no need for
registration as holding the shares of the society is sufficient evidence of
ownership.
Chandermukhi, 12th
Floor, A & B Wing,
Mumbai.
Deed was lodged for registration in 1989. In 2014, bank has received
notice for deficit stamp duty, reply filed. Case is pending for decision
before revenue Authority. After getting the order, registration should be
completed.
Bajaj
Bhawan&Shabnam
Apartment, Sion
Bank is holding the shares of the Society with the bank’s name in the
records of the society and the bank is paying tax. There is no need for
ownership.
Sterling Apartment Bank is holding the shares of the society with the bank’s name in the
records of the society and the bank is paying tax. There is no need for
ownership.
Cent Pearl
Apart,Belapur
In process of getting the NOCs from Department of State Government
of Maharashtra. As soon as the NOC is obtained, the action for
registration of lease deed will be initiated.
6. Chennai RO Coimbatore Property was purchased in auction in execution of civil decree more than
50 years ago and holding valid title. ZO Chennai informed that it is not
feasible to get it registered as per advocate’s opinion.

6 2 | P a g e
ANNEXURE V
Legal Section
1. The detail of the legal case filed by the bank against the parties pending are as under:-
Sr.
No.
Name of the Premises Landlord Status of Litigation (Dept. Reply) Present position
provide
1. 4th
Floor, Ewart House,
Fort, Mumbai.
Preeti Bhatt Against Judgment dated 21/07/2017 passedby Hon’ble
High Court. Bank had filed SLP before Hon’ble
Supreme Court of India same was tagged with the
other SLP pending on the same ground.
2. Zone wise pending legal cases
Sr. No. Zone
Legal cases Position on
Previous year ended on
31.03.2017
Legal cases Position
on Current month on
31.03.2018
Legal cases
Position on
Current month on
30.04.2018
1. Ahmadabad 01 02 02
2. Bhopal 07 03 03
3. Chandigarh 06 05 05
4. Chennai 03 03 03
5. New Delhi 15 14 14
6. Guwahati 04 04 04
7. Hyderabad 12 10 10
8. Kolkata 12 10 10
9. Lucknow 16 16 16
10. MMZO (Goa) 23 23 23
11. Patna 04 03 03
12. Pune 12 15 15
13. Raipur 02 03 03
Total 117 111 111
Note : - The bank should take necessary steps on a regular basis to get the matter expedited & should
follow up with their legal advisors accordingly. Further it is advised to the bank that cases which are
adjourned should be monitored with help of legal counsel &should come to its finalization as soon as
possible.

6 3 | P a g e
ANNEXURE VI
Advances Outstanding more than three months
1. Following debit/advances entries are long outstanding (more than three months) in S/L on account of
payment to contractors/ suppliers account No. 440019.
Sr.
No.
Name L/F Department Date Amount Dept.’s Remarks*
01.
Chauhan
Constructions
Pvt Ltd
56 Architect 18.04.17 5,089,840.00
The retention amount is given for
structure repairing. The work is
under final completion and final
bill shall be submitted by the
contractor.
02.
Standing
Committee on
Finance
74
Publics
Relation Office
(PRO)
12.08.16 2,64,893.80
The amount was spent by GAD
on behalf of various Participating
Organisations, Banks & Financial
Institutions, Rajya Sabha & Lok
Sabha, New Delhi.
The outstanding amount pertains
to receivable from Rajya Sabha,
New Delhi and the department is
following up for the same.03.
House
Committee
LokSabha
76 29.06.16 3,03,323.31
04.
Vasundhara
Apartments
78 Architect 03.01.17 2,500.00 Security Deposit
05. Jolly Maker 52 Architect 27.04.16 25,000.00
The retention amount is given for
civil repairs and follow up is
being done.
06.
R. B.
Chaudhary &
Associates
100 Architect 13.04.16 3,43,000.00 Retention Amount
07.
New India
Assurance
79 Insurance 29.06.17 4,125.00 Advance
08.
Adarsh Co.
Operative
Society Limited
34 Architect 07.08.17 10,000.00 Security Deposit for work at flat.

6 4 | P a g e
ANNEXURE VII
Amount Payables more than Six Months Old.
There is a long list of amount payable by the Bank to various parties which are more than six months
old (Entries pertaining to Various Departments) in account no. 440020
Sr. Name L/F Department Amount Particular Date Dept. Remarks
1
EMD
eFRMS
Solutions
29
Risk
Monitoring
Department
50,00,000.00
EMD for Efrms
(LT
Infotech,Wipro)
10.08.16
Tender is in process.
Financial bids to be
opened. FSS payment
made.
2
HCL
Infosystem
s Ltd
84 DIT 14,005.00
Purchase of
Printers
17.09.16
Vendor has not raised
invoice till date and
hence is pending for
payment.
3
Forbes
Technosys
90
Transaction
Banking
75,02,096.54 Cash Deposit 02.11.16
This 10% payment
pending is against
Performance Bank
Guarantee held back
and penalty.
4 Wipro 93 DIT 1,17,121.00 Services 22.03.13
Vendor has not raised
invoice till date and
hence is pending for
payment.
5 AGS P Ltd 111
Transaction
Banking
29,370.00
Purchase of Digital
Signature
17.09.16
This 10% payment is
against Performance
Bank Guarantee or
completion of
required period.
6
Maganami
ous Sys P
Ltd
120 DIT 40,03,438.00
Hardware and
Other System
Software
12.07.16
Legal Notice has been
issued to cancel the
Project PO.
7.
Integra
Micro
System P.
Ltd
17
Priority
Sector
(Financial
Inclusion)
5,00,000.00
Retention Amount
(Due Date
10.04.16)
11.03.15
GAD has taken up the
matter with the
respective department
and advised them to
take suitable action.

6 5 | P a g e
ANNEXURE VIII
Security & Transport Section
1. Vehicle Disposed/Sold
No Vehicles were disposed off by the Bank for the period of 01.04.2018 to 30.04.2018
2. Insurance Policy Expired in the month of 30th April, 2018
Sr. No. Vehicle No. Model Insurance Period Policy No.
1 MH01-BG-4461 Swift Dzire 24/04/2018 to 23/04/2019 3362/00905529/000/07
2 MH01-BG-4465 Swift Dzire 24/04/2018 to 23/04/2019
3362/00905537/000/04
3. Security Arrangements
The Reports for the Security Arrangements for Quarter ended 31-03-2018 has been submitted by the
bank in the XBRL format and same had been enclosed in the previous month's audit report. Since, the
reports are prepared quarterly, it is not applicable for the current month.

6 6 | P a g e
ANNEXURE IX – List of Files that have been vouched during the
concurrent audit.

6 7 | P a g e
ANNEXURE X
Glimpse of Concurrent Audit Report of Central Bank of India

6 8 | P a g e
ANNEXURE XI
Cover Page of Compliance Report

6 9 | P a g e
ANNEXURE XII
Part of Compliance Report

7 0 | P a g e
ANNEXURE XIII
Balance Sheet of Industeel Ltd.

7 1 | P a g e
ANNEXURE XIV
Profit & loss Statement of Industeel Ltd.

7 2 | P a g e
ANNEXURE XV
Income Statement of Industeel Ltd.

7 3 | P a g e
ANNEXURE XVI
Part of Notes to Accounts of Industeel Ltd.

7 4 | P a g e
ANNEXURE XVII
Working of Depreciation

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