K H Haria & AssociatesChartered Accountants

Year-end close before tax audit: an evidence-first checklist

A practical close process for ledgers, reconciliations and supporting documents before audit work begins.

Close control accounts first

Bank, GST, TDS, payroll, inventory, debtors, creditors and statutory liabilities should be reconciled before final tax and audit adjustments are posted.

Readiness checklist

  • Bank reconciliations and balance confirmations
  • Sales-to-GST-return reconciliation
  • Purchase register to input-tax-credit records
  • TDS ledger to returns and challans
  • Inventory count and valuation support
  • Fixed-asset additions and disposals
  • Expense cut-off, provisions and outstanding liabilities
  • Related-party and loan confirmations

Maintain an adjustment log

For every material entry passed after the preliminary trial balance, record the reason, approver, supporting document and impact. This creates a reliable bridge from the books supplied for review to the final financial statements.

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