GST Auditing Documentation

Audit documentation is a written or electronic record created over the course of an audit that serves as verification of the audit’s performance and protects the auditor in the event of a dispute. Furthermore, documents are the keys to determining the trail of every transaction, and they play a critical part in all GST audits. As a result, audit documentation refers to the documents gathered as proof during the GST Compliance audit. In this article, we’ll take a closer look at the documentation required for a GST audit.

Also Read: GST Consultancy Services

GST’s Purpose Documentation of the Audit

The following are the objectives of GST audit documentation:

  • To demonstrate that the audit was planned and carried out in compliance with auditing standards.
  • To support the engagement team in efficiently planning and conducting the GST audit.
  • To serve as proof for auditors to show that the auditors’ general objectives have been met.
  • To assist the engagement team in being more accountable and responsible for their job.
  • To allow the reporting partner to check that all planned work has been effectively accomplished.
  • To aid in the planning and execution of future audits.
  • To promote the use of a methodical approach.
  • External inspections and evaluations are permitted in compliance with applicable legal, regulatory, and other requirements.
  • To keep track of important information in order to continue audits in the future.

GST Audit Documentation Is Covered

The documents required for the GST audit documentation are listed below:

  • The scope and objectives of the auditor and management are included in the offer letter.
  • Letter of engagement and appointment.
  • The audit plan and audit programme are two different things.
  • GST audit checklist or GSTR 9C audit checklist.
  • Copies of invoices, agreements, and other documents
  • Management provided a copy of the written representation letters.
  • Copy of GST return, tax paid and credit claimed, sales made, and so on.
  • Important issues discovered during the audit, as well as shortcomings in internal controls, are reported to management.
  • It’s worth noting the risk assessment process used for high-risk and low-risk areas.
  • During the audit, sufficient and appropriate audit evidence was acquired.

Audit Working Papers’ Content

The following are some of the most essential contents of GST audit working papers:

  • Name of the customer, audit technique and tools utilised, data sources, and the audit period
  • Detailed observations with pertinent information such as the amount, date, document references, and comments
  • Signatures of staff employees who worked on the date and working document.
  • Signatures of reviewers, partners, and date of review, among other things

The several types of audit files that must be kept

The GST auditor would separate the working papers into the following categories for repeated audits:

Permanent Audit file

  • Letters of engagement
  • The company’s organizational structure
  • Important documents such as MOA, AOA, minutes etc.,
  • Financials from the previous year, as well as GSTR 9 and 9Cs.
  • Management delivered MRL and ICQs.
  • Ratio and trend analysis, for example.

Audit file currently in use

  • Letters of Offer and Acceptance
  • Plan, programme, and checklist for auditing
  • During the audit, methods for analytic review were carried out.
  • Statement of reconciliation between the books of accounts and the yearly returns
  • Other auditors, experts, and third parties were contacted.
  • Examine your notes and representations, among other things.

Audit Documentation Ownership

GST The auditor’s documentation is his or her property. The auditor would make copies of the audit material available to the entity, and this disclosure would not jeopardize the auditor’s independence or validity.

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