Preparation and approval of Audit plan

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..... and can be reasonably expected to improve audit outcomes. 4.4.1 General guidelines to prepare audit plan * Reason(s) for selection - The audit team should study the reasons for selection and try to identify the focus area. There may be two sets of selection criteria - (i) as available in BIFA Tool of GSTN portal and (ii) as provided by the Department. It should try to identify major risk areas. In case the volume of documents for verification is large, the auditor should adopt sample verification. In such a case, sample selection techniques used should be spelt out. The sample should be chosen in such a way that it represents the whole. Samples should represent relevant time-periods, business activities, value addition chain and other p .....

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..... agrave;-vis Form GSTR-1. Similarly, there may be a mismatch between ITC claimed in Form GSTR-3B vis-à-vis ITC auto-populated in Form GSTR-2A. * Analysis of business operations as declared by the auditee in the GST Returns in the light of other data sources available in the GST portal itself. The Audit Officer should verify the turnover declared by the RTP in the GSTR Returns for the concerned period vis-à-vis footprint of payments made to the RTP as per GSTR-7 or GSTR-8 filed by TDS deductors or TCS collectors, as the case may be. The Audit Officer should also consult the various exceptional reports made available. * Analysis of business operations as declared by the auditee in the GST Returns in light of secondary data so .....

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..... ount policy documents, price circulars, etc. reflecting the said discount. * Period of coverage: Normally, the coverage will be for the whole of the audit period. However, the auditor may conduct test verification for specific periods each extending over a short duration, if required. * Efforts should be made to make a simple audit plan in case of small taxpayers 4.4.2 How to make an effective audit plan? An effective audit plan actually starts building up from the stage of desk review. Audit Plan is the most important stage before the conduct of audit. Each audit team should prepare an Audit Plan for each individual auditee allocated to it based on the information gathered from available sources and based on observations made upon .....

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