Examination of Books of Accounts and records - Model All India GST Audit Manual 2023 [CBIC] - GST

5.2 Examination of Books of Accounts and records Examination of Books of accounts and records involves verification of data and information and actual verification of documents submitted by the RTP in the course of audit and verification of the points mentioned in the audit plan. This is the most vital part of the audit process. The entire outcome of audit depends on examination of books of accounts systematically and in a planned manner. The officer should have primary knowledge about the business pattern of the RTP with respect to the particular trade industry. He should also be well aware of the existing trade practices, conventions and market trends. The Audit Officer should be well aware of the statutory provisions, rates of taxes, Circulars, Orders etc. as applicable for the particular period of audit. An Audit Officer should apprise the RTP of the provisions of the GST Acts in respect of maintenance of books. He should preserve all the documents submitted by the auditee in the course of audit as office records preferably in electronic format. Physical copy duly authenticated or digitally signed copies wherever possible should be collected which are pertinent to the queries / audit para of the audit officer. He should take an unbiased and judicious approach in the course of audit An Audit Officer should be tactful to gain the goodwill and confidence of the RTP. Technical lapses by the RTP which do not have any revenue implication, and have occurred out of oversight or ignorance, should be ignored. However, any such incident should be noted down in the course of audit. Confidentiality should be maintained in respect of sensitive and confidential information furnished in the course of audit. Understanding of the Indian Accounting Standards and the impact of GST thereupon while examining the Books of Accounts will facilitate an Audit Officer while examining Books of Accounts. Some illustrative examples for primary understanding of accounting standards vis- -vis GST are given as Annexure 16.