Responsibilities of the management and GST auditor in GST audit
By: – Sandeep Rawat
Goods and Services Tax – GST
Dated:- 4-12-2018
Appointment of the GST Auditors under section 35(5) and section 44(2) of the CGST Act read with Rule 80(3) of the CGST Rules [read with the corresponding provisions of the State / Union Territory Goods and Services Tax Acts] is to certify the Reconciliation Statement in GSTR 9-C prepared for the financial year ended 31st March 2018.
In this context, clear responsibilities play a very important role to implement the bonafide purpose of the GST audit.
I have prepared the scope of the management as well as GST auditor responsibilities in GST audit under the GST laws.
Management Responsibilities
Compliance with GST laws and preparation of GSTR 9C in compliance of those laws
The Management is responsible for compliances with the GST laws, comprising the Union Territory Goods and Services Tax / Central Goods and Services Tax / State Goods and
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that they are free of any material mis-statement.
Audit- auditing standards generally accepted in India and in line with the requirements under the GST laws and assessing the accounting principles used and significant estimates made by the Management in the presentation of financial statements
The audit will be conducted in accordance with the auditing standards generally accepted in India and in line with the requirements under the GST laws. Those standards require that GST auditor plan and perform the audit to obtain reasonable assurance as to whether the relevant GSTR 9C is free of material mis-statements. An audit includes examination on a test basis, using the concept of materiality, evidence supporting the amounts and disclosures in GSTR 9C. The audit may also include assessing the accounting principles used and significant estimates made by the Management in the presentation of financial statements.
Consider- internal control.
GST auditor will consider, solely for the purpo
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nagement about the representations contained in the financial statements and other reports as may be applicable and the effectiveness of internal control over financial reporting. Auditing standards generally accepted in India also require that, at the conclusion of the audit, GST auditor obtain representation letters from certain members of management about these matters. The responses to those inquiries, the written representations, and the results of the audit tests comprise the evidential matter GST auditor will rely upon in forming an opinion on the GSTR 9C or other reports. Owing to the importance of Management's representations to an effective audit and review, the enterprise agrees liability and costs relating to the services under the letter attributable to any misrepresentations by Management. Management is responsible for providing him with all financial records and related information / documents on a timely basis, and its failure to do so may cause him to delay the report,
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