TAX AUDIT
TAX AUDIT
TAX AUDIT
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Clause 17<br />
Amounts debited to the profit and loss account, being:-<br />
(a) expenditure of capital nature<br />
Verify bills/vouchers of certain specific accounts e.g.<br />
Advertisement expenses, software expenses etc. to ensure that<br />
amount of capital nature are not claimed as revenue.<br />
In cases of controversy, auditor should report by way of<br />
abundant caution,<br />
(b) expenditure of personal nature<br />
Scrutinize ledger accounts like telephone, motor car,<br />
entertainment expenses – whether personal expenses of any<br />
director/employee are debited to Profit and Loss a/c<br />
Expenses incurred for directors/employees are perquisites in<br />
their hands. Company can not have personal expenses.<br />
KALYANIWALLA & MISTRY