Institute of Cost Accountants issues guidance on internal audit of Power Industry
The Institute of Cost Accountants of India (ICAI) has recently issued a guidance note on internal audit of power industry which provides elaborated guidance to auditors on the aspects to be considered while performing internal audit. The document provides elaborated guidance on the following aspects:-
✓ Introduction to Internal Audit
✓ Documentation and Working papers
✓ Planning an Internal Audit and Audit Programme
✓ Audit Sampling
✓ Audit Evidence
✓ Analytical Procedure
✓ Accounting System & Internal Control
✓ Control and risk assessment
✓ Internal Audit in ERP Environment and System Audit
✓ Relying on External Opinion and Reference of Auditor Expert
✓ Audit Conclusion and Corrective measures
✓ Report writing and Auditor Report
✓ Introduction to Power sector
✓ Generation of Power
✓ Transmission of Electricity
✓ Distribution of Electricity
✓ Special transactions peculiar to the Industry with reference to power sector
✓ Activities/ Services of the Industry (i.e. Power Sector)
✓ Audit of Operational Activities
✓ Audit of Special Areas w.r.t peculiar transactions
✓ Audit of Functional Areas
✓ Maintenance of Cost records and Cost Audit specific to the Industry
✓ Audit follow up
✓ Checklist
Earlier during the start of the year, the Institute of Cost Accountants of India issued an exposure draft on the internal audit of power industry.
Click here to access the guidance note.