Page 247 - DCOM204_AUDITING_THEORY

Unit 12: Cost Audit

Notes
Whether material Same as MAOCARO. However,
discrepancies relating to one aspect added here is whether
physical verification the company is maintaining
properly accounted for proper records of inventory

Whether stock valuation Deleted
has been done in
accordance with accepted
accounting principles
6. Clause relating to No such reporting required The number of parties and
Loans granted and amount involved in the
taken from parties transactions has to be reported
listed in register only for parties listed in register
maintained u/s. maintained u/s. 301. No
301and Companies reporting for companies under
under the same same management
management as
defined u/s. 370 (1B) Whether rate of interest and Same as MAOCARO. However,
other terms and conditions no reporting required for loans
are prima facei prejudicial granted to /taken from
to the interests of the companies under the same
company management

7. Clause relating to Whether the parties to Same as MAOCATO.
other loans or whom loans or advances in
advances in the nature the nature of loans are
of loans granted or given is regular in
taken by the company repayment

No such reporting required Whether the rate of interest and
other terms and conditions of
loans (secured or unsecured) are
prima facei prejudicial to the
interest of the company

If the parties are not regular Same as MAOCARO. However,
in repayment, whether reporting required only if
reasonable steps have been overdue amount is more one
taken by the company for lakhs
recovery/payment of the
principal and interest.
8. Clause relating to Is there an adequate Same as MAOCARO. However,
Internal Control internal control procedure one very important additional
procedures commensurate with the size thing to be reported is whether
of and the nature of the there is a continuing failure to
business of the company correct major weaknesses in
relating to inventory and internal control
fixed assets and for the sale
of goods.
9. Clause relating to No such reporting required Whether transactions that need to
transactions entered be entered into a register in
with parties pursuance of section 301 have
mentioned in register been so entered
mentioned u/s. 301
Contd...

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