1 / 4

ABC CLASSIFICATION APPROACH IN AUDIT

ABC CLASSIFICATION APPROACH IN AUDIT. Day 1 Session 4 slide 1.4. ABC CLASSIFICATION APPROACH IN AUDIT.

daktari
Télécharger la présentation

ABC CLASSIFICATION APPROACH IN AUDIT

An Image/Link below is provided (as is) to download presentation Download Policy: Content on the Website is provided to you AS IS for your information and personal use and may not be sold / licensed / shared on other websites without getting consent from its author. Content is provided to you AS IS for your information and personal use only. Download presentation by click this link. While downloading, if for some reason you are not able to download a presentation, the publisher may have deleted the file from their server. During download, if you can't get a presentation, the file might be deleted by the publisher.

E N D

Presentation Transcript

  1. ABC CLASSIFICATION APPROACH IN AUDIT Day 1 Session 4 slide 1.4

  2. ABC CLASSIFICATION APPROACH IN AUDIT • The ABC classification has been traditionally applied in the area of valuation of inventories. The classification can also be applied to audit. Basically it is applied in designing the methodology of audit. The ABC classification implies concentration of maximum audit effort small number of high-risk cases. This requires classification of auditee units and assessee under three categories i.e. • 1.      High risk units/assessees • 2.      Medium risk units/assessees • 3.      Low risk units/assessees slide 1.4

  3. ABC CLASSIFICATION APPROACH IN AUDIT • In the field of direct taxes audit too the ABC classification is being applied in the following manner: -

  4. ABC CLASSIFICATION APPROACH IN AUDIT • As far as selection of cases for audit is concerned, the extant practice is as under: - • Scrutiny assessments 100% • Summary assessments • Cases of refund above Rs.25000/- 100% • Others 5-35% slide 1.4

More Related