SUMMER INTERNSHIP PROJECT REPORT ON

AUDIT OF MADHYANCHAL VIDYUT VITRAN NIGAM

LIMITED IN LUCKNOW
AT
GUPTA SHIVENDRA & CO.,

(CHARATERED ACCOUNTANTS)
SESSION: 2023-2025

Submitted towards the partial fulfilment of the requirement for

the award of the degree of

MASTER OF BUSINESS ADMINSTRATION

SUBMITTED BY :
UNDER THE GUIDANCE OF:
ANAMIKA SINGH
DR. NISHANT KUMAR
RD
MBA (FINANCE) 3 (ASSOCIATE PROFESSOR)
SEMESTER
ROLL NO: 2310019025311

LUCKNOW UNIVERSITY
FACULTY OF MANAGEMENT STUDIES
 INDEX
Sr.no Content Pages
1 Preface 3
2 Acknowledgement 4
3 Declaration 5
4 Completion Certificate from the Company 6
5 SIP Presentation Certificate 7
6 Company Profile 8
7 Industry Profile 13
8 Introduction To The Project 26
9 Objectives of The Study 27
10 Student’s Roles and Responsibilities 32
11 Description of the Project 36
12 Finding/Learning of the Project 49
13 Review & Suggestions 52
15 Conclusion 55
16 References 56
 PREFACE
Training is the systematic development of an individual's knowledge,
skills and attitude required to perform adequately a given task or job. It
provides individuals with practical knowledge, which makes work more
efficient and organized. It is very important in today's times and age for
an individual's professional development.
I analyzed my strengths and limitations during my training at CA Gupta
Shivendra & Co., which helped me to design this project. I gained
knowledge about the Reporting and Observation .Understanding the
ideas of auditing at source was the subject of another study I did. As a
result of my analysis, now I know how to collect the data and analyze it.
 ACKNOWLEDGEMENT

I acknowledge the sincere assistance provided to me from several rather

unexpected quarters during the course of execution of this project. It would
be a mammoth task to place on record my gratitude to each and every one
of them but the whole hearted attempt would be made never the less, least I
branded ungrateful.
I am extremely thankful to Dr. Sangita Sahu , Head of department, Faculty
of Management Studies ,University of Lucknow, who gave me an
opportunity to apply knowledge partially. I am thankful to Dr. Nishant
Kumar, Associate Professor and my mentor who guided me to organize my
Summer Intern Project. I would also like to thanks CA. Shivendra Gupta ,
Partner’s of Gupta Shivendra & C0., for guiding me throughout my
internship and giving me an opportunity to undergo training on the “Study
of Accounts and Finance” and making my stay at CA Gupta Shivendra &
Co,. a memorable learning experience.

ANAMIKA SINGH
 DECLARATION
I ANAMIKA SINGH, Roll No. -2310019025311, pursuing Master of Business
Administration (2023-2025) from Faculty of Management Studies at University of
Lucknow, hereby declare that the Summer Internship Report titled AUDIT IN
MADHYANCHAL VIDYUT VITRAN NIGAM LIMITED AT CA Gupta
Shivendra & Co., is an original work done by me as a curriculum in our course of
Masters in Business Administration (Finance), and the same has not been
submitted to any other Institution for the award or any other degree.

ANAMIKA SINGH
ROLL NO. - 2310019025311
FACULTY OF MANAGEMENT STUDIES
DEPARTMENT OF BUSINESS ADMINISTRATION
UNIVERSITY OF LUCKNOW
INTERNSHIP CERTIFICATE
SIP PRESENTATION CERTIFICATE
COMPANY PROFILE
Gupta Shivendra & Co

Gupta Shivendra & Co., Chartered Accountants, established on September 11,

2007, is a well-regarded firm led by C.A. Shivendra Gupta, C.A. Kamini Aggarwal,
and C.A. Mohd. Noman. With offices located in Lucknow, Barabanki,
Shahjahanpur, and Noida (Delhi-NCR).
The firm offers a comprehensive range of services. These include finance
management, audit and inspection, consultancy, tax audit, statutory audit, and
internal audit. Their accounting services cover bookkeeping, financial statement
preparation, and management accounting.
It is a business that is expertly managed. The team includes of renowned
chartered accountants, corporate financial experts, and tax specialists.

The firm combines a variety of specialised skills that are geared toward providing
sound financial advice and individualised proactive services. Those connected to
the firm regularly interact with other professionals and members of the industry,
which enables the firm to stay abreast of modern developments and to satisfy the
needs of its clients.

With a comprehensive understanding of how financial markets and services will

develop over time, Gupta Shivendra & Co conducts research to keep on top of
these trends. Gupta Shivendra & Co adapts its operations, areas of expertise, and
service offerings to support clients' business operations and expansion.
DEPARTMENTS OF THE COMPANY

1. AUDIT AND ASSURANCE DEPARTMENT : Provides Audit and Assurance Services

to a Wide Range of Clients. We Audit the Financial Statements of Partnerships,
Non Governmental Organisations, and Limited Corporations. We also perform
Specialised Tasks such as Management Audits, Internal Audits, and Investigations.
Audit focuses on business challenges and issues that may affect the financial
statements. The purpose of our services is to comply with the legal requirements
set by the many laws and regulations in place. We not only identify the non-
compliance but also help clients fix it by creating corrective measures and
providing guidance on how to comply with legal & regulatory requirements. We
always strive to meet the reporting deadlines set by the law or those agreed with
our clients, while adhering to professional, legal, and ethical standards. Our main
focus is to provide clients with quality services, improve their businesses by
assessing current & potential control risks and recommending the most suitable
solutions in the given situation. While upholding the standards of professionalism,
the law, and ethics, the firm always attempts to meet reporting deadlines that are
stipulated by laws and regulations or those that are mutually agreed upon with
clients. The company's primary goals are to enhance its clients' businesses by
offering top-notch services, assessing current and potential control risks, and
suggesting the most practical solutions given the situation. The company's top
priority is always to send audit teams from the Departments of Company Audit &
Assurance, Tax & Corporate, Computer, Correspondence, and Human Resources
to clients who meet the requirements in terms of professionalism, experience,
and industry knowledge.

2. TAX AND CORPORATE DEPARTMENT: The business helps customers take

advantage of all available tax deductions by providing tax preparation services. In
addition, the business helps clients comply with tax laws and regulations by
informing them of any updates or revisions. Tax professionals are qualified,
informed, and talented. The company maintains a sizable tax library that is always
open for consultation and offers temporary solutions for challenging
circumstances. The company offers a wide range of tax services, such as
preparation and filing of annual tax returns, compliance services, and tax advisory
services. • Personal income tax services; • Tax authorities litigation and
representation. Within the organisation, the same team handles matters
pertaining to the corporate sector and taxes. While a corporate company offers a
variety of services related to the corporate sector, such as the incorporation and
winding up of businesses.

3. COMPUTER DEPARTMENT: This division oversees matters pertaining to

computers and helps other divisions run smoothly. The department completes
audit reports in a professional manner and manages the tax department's online
income tax return filing. It covers networking in the workplace as well as any
other problems that occasionally arise with computers.

4. CORRESPONDENCE DEPARTMENT: It oversees all correspondence for the

business and provides information on a regular basis, both requested and
unrequested. Oversee the Correspondence's everyday operations with efficiency
and effectiveness. Talk with customers to resolve issues related to policies and
customers. It is possible to identify trends and eliminate obstacles to the
production and delivery of statements by maintaining thorough records of all
conversations for future reference.
SERVICES OFFERED BY ORGANISATION

 GST Registration: In order to sell goods with a higher turnover value,

businesses need to register for GST. States may have different limitations. It
is necessary to obtain the GST Input Tax Credit. Skilled CPA firms can
streamline the procedure at reasonable costs.

 Project Financing: Businesses need money in order to grow. An expert CA

can prepare a project report for loan financing, ensuring that you get the
maximum qualifying amount in the quickest amount of time. A percentage
of the loan amount is frequently used to calculate fees.

 GST Returns : Companies are required to file periodic GST returns that
include information on their entire GST liability, total revenue, and mode of
payment. States could have varying frequencies. There will be
consequences for delays. Skilled CPA firms are able to provide compliance
at reasonable costs.
 TDS Returns: Tax Deducted at Source (TDS) deductions are required by the
Income Tax Act to submit periodic TDS returns using TAN No.
 Salary Tax On Income: An income tax return for a salaried employee can
be filed using Forms 16 and 16A. Form 26 AS can be used to get information
about TDS on salary. A knowledgeable CPA firm can help you reduce TDS
and improve your tax planning.

 Business Income Tax : Under the Income Tax Act, corporations and
businesses are required to file income tax returns. Income tax audit reports
facilitate compliance with regulations. Skilled CPA firms can help reduce
noncompliance with income tax laws.
 Tally Accounting : Tally is the most widely used accounting software. CA
firms can provide accounting management services to small and medium-
sized businesses by assigning accountants to handle your company's
accounting.
 Statutory Audit : In compliance with the Companies Act, have reputable CA
firms perform the statutory audit for your business. A statutory audit must
be completed by any kind of firm.
 Tax Audit : Corporations and large businesses are required by the Income
Tax Act to undergo tax audits. Skilled accounting firms specialise in reducing
 income tax noncompliance. Tax audit reports serve to ensure compliance
with income tax laws by highlighting significant tax-related facts.
 Internal Audit : Internal audits and internal financial control testing are
mandated by the Companies Act. Internal audits are not necessary, but
statutory audits must be performed. Internal auditors can stop leaks,
increase efficiency and control, and add value to your business.
 Special Audit - A special audit is an independent examination of a business
or organization's financial records, accounting practices, internal controls,
and other financial information. It is typically performed to investigate a
specific issue or concern that requires an expert opinion or to comply with
regulatory requirements.

 Corporate Services:

 Incorporating the business

 Consulting on company law issues
 Planning mergers, acquisitions, de-mergers, and corporate re-
organization
 Filing annual returns and other forms and documents
 Reviewing the compliance of Clause 49 with regard to fiscal, corporate,
and tax laws
 Handling secretarial matters, such as share transfers;
 Maintaining statutory records
 Consulting on public relations, rights, and bonus issues pertaining to the
issuance of shares
 And changing the name, objects, registered office, etc.
INDUSTRIAL PROFILE
The Institute Of Chartered Accountants Of India

Emblem of ICAI as given by Sri Aurobindo

FOUNDED ON : 1st July, 1949

The Chartered Accountants Act, 1949 (Act No. XXXVIII of 1949) created the
Institute of Chartered Accountants of India (ICAI), a statutory body, to regulate
the field of chartered accounting in the nation. The Ministry of Corporate Affairs
of the Government of India oversees the administrative operations of the
Institute. The ICAI has a long history of serving the Indian economy in the public
interest and is the second-largest professional association of chartered
accountants in the world. The Ministry of Corporate Affairs, Government of India,
has administrative responsibility over the Institute of Chartered Accountants of
India (ICAI), which is the country's largest professional accounting body. The
affairs of the ICAI are managed by a Council in accordance with the provisions of
the Chartered Accountants Act, 1949 and the Chartered Accountants Regulations,
1988. The Council constitutes of 40 members of whom 32 are elected by the
Chartered Accountants and remaining 8 are nominated by the Central
Government generally representing the Comptroller and Auditor General of India,
Securities and Exchange Board of India, Ministry of Corporate Affairs, Ministry of
Finance and other stakeholders. The Chartered Accountancy course is conducted
by the Institute of Chartered Accountants of India, which has its headquarters in
New Delhi, 5 regional offices (Calcutta, Kanpur, Chennai, Mumbai and New Delhi)
and 81 branches under these regional centers. The National Financial Reporting
Authority (NFRA) in India makes recommendations for accounting standards and
auditing standards to the Government of India, which establishes the Standards
on Auditing (SAs) to be followed in the audit of financial statements in India. The
Institute of Cost Accountants of India (ICMAI), the Universities of Delhi, Calicut,
and Mumbai are among the other well-known accounting research organizations
in India.

The term "ICAI Accountant" or "ICAI Chartered Accountant" is used to refer to

members of the Institute (either Fellow or Associate). The term "chartered"
however, does not allude to or derive from any Royal Charter. A breach of the
stated Code of Ethics and professional standards is grounds for disciplinary action
for ICAI Chartered Accountants. The President serves as the institute's Chief
Executive Authority, while the council has management authority over the
organization. A person can join ICAI and work as a statutory (financial) auditor for
Indian companies. The professional membership group is renowned for its
charitable work. With various professional accounting groups throughout the
world, ICAI has mutual recognition agreements in place for reciprocal
membership recognition.

ICAI is one of the founder members of the International Federation of

Accountants (IFAC), South Asian Federation of Accountants (SAFA), and
Confederation of Asian and Pacific Accountants (CAPA). ICAI was formerly the
provisional jurisdiction for XBRL International in India. In 2010, it promoted
eXtensible Business Reporting Language (XBRL) India as a section 8 Company to
take over this responsibility from it. Now, eXtensible Business Reporting Language
(XBRL) India is an established jurisdiction of XBRL International Inc. The ICAI has
gained reputation over time as a leading accounting organization not just in the
nation but also internationally for upholding the highest standards in technical
and ethical areas as well as for sustaining rigorous examination and education
standards. Both the profession's membership and student population have
increased dramatically since 1949.
• Formulation of Accounting Standards
• Prescription of Standard Auditing Procedures
• Laying down Ethical Standards
• Monitoring Quality through Peer Review
• Ensuring Standards of performance of Members
• Exercise Disciplinary Jurisdiction
• Financial Reporting Review
• Input on Policy matters to Government
VISION AND MISSION

 VISION :

 Globally recognized organization.

 Provides best quality education, training, and development.
 Focus on accountancy, audit, and allied disciplines.
 Embraces values of integrity, transparency, and excellence.

 MISSION :

 Education and Training:

 Offer the best education and training opportunities.
 Develop aspiring students into competent professionals.

 Professional Development:
 Continuously upgrade knowledge and skills of members.
 Prepare members to meet challenges in a dynamic business
environment.
 Regulatory Framework:
 Set and maintain high ethical and professional standards.
 Ensure compliance among members.
 Install public confidence in the accountancy profession.
 Research and Publications:
 Promote research and development in accountancy, auditing,
and allied disciplines.
 Disseminate knowledge through publications and other means.
 Internationalization:
 Actively participate in and contribute to the global accountancy
profession.
  Foster international cooperation, collaboration, and
recognition.
 Stakeholder Engagement:
 Engage with various stakeholders, including government,
regulators, industry, and the public.
 Promote transparency, accountability, and good
governance.
About Audit
The audit is the process of evaluating the accounting entries present in the
company's financial statement. The audit checks the accuracy of financial
reports. Auditing includes making sure ethically presented, fairly presented,
and accurate, and it also checks whether financial reports are as per
accounting standards and principles. In addition, the audit tells about any
misrepresentation done in financial records, any misuse of funds, any fraud,
and any fraudulent activities done in a company or done by the company.
Internal auditors and external auditors conduct the audits who are
independent auditors.

About Special Audit

A special audit refers to a thorough investigation of a particular aspect of the
organization's process or activities, going beyond standard auditing
procedures. Its purpose is to gauge the discrepancies or false practices
during the ordinary audit process.
The organization initiates these investigations in response to specific
concerns, such as suspected fraud or irregularities, requiring a detailed
examination to address the unique circumstances. They focus on the specific
issue or area that prompted the need for the investigation

A special audit refers to a thorough investigation of a particular aspect of the

organization's process or activities, going beyond standard auditing
procedures. Its purpose is to gauge the discrepancies or false practices
during the ordinary audit process.
The organization initiates these investigations in response to specific
concerns, such as suspected fraud or irregularities, requiring a detailed
examination to address the unique circumstances. They focus on the specific
issue or area that prompted the need for the investigation.
Guidelines of Special Audit

The guidelines for a special audit ordered by a High Court for a Vidyut
(Electricity) Corporation are often tailored to the specifics of the case, as
mentioned in the court's directives. Below is a generic framework of such
guidelines, drawn from legal precedents and best practices:

1. Legal Authority and Applicability -

 The special audit is mandated under the provisions of the Electricity

Act, 2003, relevant state regulations, or specific High Court orders.
 It is conducted in accordance with the Companies Act, 2013,
Income Tax Act, 1961, or any other applicable law governing the
Vidyut Corporation.

2. Appointment of Auditor-

 The High Court specifies the qualifications of the auditor, typically a

Chartered Accountant or a firm with expertise in special audits and
the electricity sector.
 The auditor must be independent and have no conflict of interest with
the Vidyut Corporation.

3. Scope of the Audit-

The court order will define the scope, which may include:

1. Financial Audit:
o Verification of revenue, including billing, tariff collections, and
subsidies.
o Examination of expenditure for irregularities or wasteful
spending.
2. Compliance Audit:
o Assessment of compliance with statutory provisions, including
the Electricity Act and relevant state rules.
o Verification of adherence to regulatory requirements, such as
tariff guidelines issued by the State Electricity Regulatory
Commission (SERC).
3. Fraud or Irregularity Investigation:
 o Detection of misappropriation, embezzlement, or fraudulent
activities.
4. Operational Review:
o Efficiency analysis in power generation, transmission, and
distribution.
o Scrutiny of procurement processes and contract management.
5. Performance Audit:
o Evaluation of targets versus actual performance metrics.

4. Examination Procedures-

The auditor is empowered to:

 Access all books of accounts, ledgers, contracts, agreements, and

supporting documents.
 Inspect physical records, inventory, and assets, if needed.
 Request explanations from the Vidyut Corporation's management
and staff.
 Perform forensic analysis of financial data, if irregularities are
suspected.

5. Confidentiality and Ethics-

 The audit team must maintain the confidentiality of all information

accessed during the audit process.
 The auditors must adhere to the Code of Ethics issued by the ICAI
or their regulatory authority.

6. Reporting Guidelines-

 The audit report must be:

o Comprehensive: Highlight all findings with supporting
evidence.
o Neutral and Objective: Based solely on verified facts.
o Actionable: Include recommendations for corrective measures
and procedural reforms.
 The report should include:
o Executive Summary: Key findings and issues.
o Detailed Observations: Descriptions of irregularities,
including quantitative and qualitative aspects.
 o Recommendations: Steps for remedial action, policy
changes, or legal proceedings.

7. Submission Timeline-

 The High Court specifies the timeline for completing the audit and
submitting the report. Extensions, if required, must be sought with
proper justification.

8. Cooperation from Vidyut Corporation-

 The corporation is obligated to:

o Provide unhindered access to records and personnel.
o Ensure full cooperation with the audit team.
o Respond promptly to queries and furnish documents as
requested.

Failure to cooperate can result in contempt of court proceedings.

9. Oversight by the High Court-

 The High Court or a designated committee may oversee the audit

process to ensure compliance with its directives.

10. Post-Audit Actions-

Based on the audit findings, the High Court may:

 Direct recovery of misappropriated funds or overcharged amounts.

 Order disciplinary or criminal action against individuals responsible
for irregularities.
 Recommend systemic reforms to improve accountability and
efficiency.
Audit process and procedures in India
The audit firm India are regulated and guided by the Institute of
Chartered Accountants Of India. ICAI has suggested and provided the
firm with different subject regarding auditing. Like others it has
suggested auditing procedures that can be followed by the audit firm in
India in its Audit Practice Manual.
Audit process suggested by Audit Practice Manual (APM) may
be summarized as follows.
 Planning.
 Collection of evidence.
 Controlling and recording
 Review and opinion

Audit Process -

Planning Collection of Controlling and Review and

evidence opinion
recording

Planning
In order to assist in a disciplined approach to planning and to
ensure compliance with Indian Standards on Auditing (ISA),
the APM provides documentation enabling a record of
planning to be kept, demonstrating the approach adopted for
each audit and the reasons for that approach.

Collection of audit evidence

The APM audit programs are comprehensive and designed to deal

with most
eventualities. However, it is crucial that the programs are tailored
to meet particular circumstances of the client.
Controlling and recording
This section provides detailed guidance on the use of the
documentation, including the way in which the forms should be
completed for the preparation of a well documented audit file.
Review and opinion
This section deals with how partner can review the overall audit
and form an opinion. APM provides some checklists which can be
used to review the overall performance of
the client.
Audit Procedures -

There are seven steps involved in the procedures that come

one after another. The procedures followed by the Nilesh
Tiwari & Co. are basically inspired by the approaches
suggested by ICAI in Audit Practice Manual. Steps are as
follows:
 Identity Overall Goals
 Gather & Evaluate Initial Information
 Assess General Risks
 Assess Account Specific Risk
 Develop Efficient and Effective Audit Plan Program

 Conduct Audit Testing

 Evaluate And Communicate Audit Results
RISK BASED INTERNAL AUDIT
Internal Auditing helps an organization accomplish its objectives
by bringing a systematic, disciplined approach to evaluate and
improve the effectiveness of risk management, control and
governance processes.
- Medical
Benefits of Risk based Audit

 Traditional audit view value added techniques

 Risk profile of Businesses
 Internal Controls & Ops Risk reviews
 Cost reductions recommendations
 Review of Fraud Risk Controls
INTRODUCTION TO THE PROJECT
The project titled “Audit of Madhyanchal Vidyut Vitran Nigam
limited (EUDD-06, LESA), Lucknow. The objectives of a
management audit aimed at covering all aspects of billing,
collection, and revenue activities within a specific division. It
emphasizes the importance of auditing to identify and correct errors
in billing. Auditors will review various cases of incorrect billing, such
as bills issued without actual electricity usage, billing after
disconnection, delays in issuing bills, and discrepancies in
consumer data. In this we will also focus on cases where bills have
been revised and will analyze the reasons behind these revisions.
According to the guideline for us that a minimum sample size for
auditing bill revisions will be based on the monthly bill revision
report from the online billing system.
We have done audits of various branches or divisions like
Mahanagar, Niralanagar, the university, GSI, Keshav Nagar, and
Kapoorthala. In this, we have to give the list of months from which
we had to check the bill revision procedure. What are the reasons
for the bill revisions? Then we have to suggest, wherever required,
that they are not doing their work in an appropriate manner, and
after analyzing all, we have to prepare the report and submit it
within the guidelines.
This is a copy of Electricity bill we use to observe this electricity bill
and then write details of this bill on a paper and examine that paper
and after examining that written paper we use to note in excel sheet
with user’s id number, name, address , paper observation, bill
revision basis and final observation .
This is how we use to record the data in excel sheet from electricity
bill of months of every individual in excel sheet . Once the auditing
is finished from the division then auditors make report of every
observation in excel sheet and later that sheet will be submitted to
High Court by Chartered Accountant.
OJECTIVES OF THE STUDY
In depth study of existing systems, procedures and controls for proper
understanding. Suggestions for improvement and strengthening

1. In-depth Study:
o The audit aims to conduct a comprehensive analysis of
current systems, workflows, and internal controls.
o It includes identifying how processes are implemented and
examining whether they align with organizational goals and
compliance requirements.
2. Procedures and Controls:
o Focus is placed on examining standard operating
procedures (SOPs) and internal controls that mitigate risks.
o The audit ensures that controls are effective in preventing
errors, fraud, or inefficiencies.
3. Understanding:
o A critical part of the audit is developing a thorough
understanding of how these systems function in practice and
how well they align with the intended purpose.
4. Suggestions for Improvement:
o Based on findings, the audit provides recommendations to
enhance operational efficiency, compliance, and control
mechanisms.
o These suggestions can focus on process optimization,
automation, or risk mitigation strategies.
5. Strengthening:
o The ultimate goal is to reinforce areas of weakness and
ensure robust systems that support organizational goals while
maintaining compliance.

Comprehensive review to ensure that the accounts are

prepared in accordance with Generally Accepted
Accounting Policies and applicable Accounting
Standards/IFRS -
1. Compliance with GAAP:
o The audit aims to ensure that all financial records and
statements adhere to Generally Accepted Accounting
Principles (GAAP), which provide guidelines for:
 Recording transactions.
 Valuing assets and liabilities.
 Recognizing revenue and expenses.
2. Adherence to Accounting Standards/IFRS:
o International Financial Reporting Standards (IFRS) or other
relevant accounting standards must be followed. The audit
verifies that:
 Financial statements are prepared consistently across
reporting periods.
 Disclosures meet transparency and completeness
requirements.
3. Accuracy and Fair Presentation:
o The financial statements should present a true and fair view
of the organization’s financial position and performance.
o This involves ensuring accurate classification, valuation, and
reporting of assets, liabilities, equity, income, and expenses.
4. Consistency and Comparability:
o The audit ensures that the same accounting policies are
consistently applied, enabling comparability across periods
and with other entities.
5. Risk Identification and Mitigation:
o By reviewing accounts thoroughly, auditors can identify
risks, such as errors, misstatements, or potential fraud.
o Suggestions may include improvements to internal controls
to prevent such risks.
6. Disclosure Requirements:
o Ensures that all mandatory disclosures (such as contingent
liabilities, related-party transactions, and significant
 accounting judgments) are made in line with the applicable
standards.

ASSISTING IN MAKING ADUIT REPORT

 Use of Standard Audit Templates and Checklists-

 Utilize standardized audit report templates to ensure all

elements are covered.
 Review checklists for:
o Completeness of audit procedures.
o Accuracy of financial statement disclosures.
o Compliance with applicable auditing standards.

 Quality Control and Review-

 Internal Review: Ensure senior auditors or engagement partners

review the draft report.
 External Consultation: For complex issues, seek advice from
technical experts or audit committees.

 Finalizing and Issuing the Report-

 Obtain management’s representation letter.

 Resolve outstanding matters.
 Secure formal approval for issuance
 Distribute the report to intended recipients
ROLES AND RESPONSIBILITIES
Different task that I performed during my internship:
 Collection of Data
 Purpose: Gathering relevant financial documents, transaction
records, and other supporting evidence.

Skills Gained:

 Attention to Detail: Ensured all necessary documents were

collected without omissions.
 Communication Skills: Effectively liaised with various
stakeholders to obtain data.
 Organizational Skills: Maintained a systematic approach to
tracking and managing data requests.

 Arrangement of Data
Purpose: Organizing the collected data for analysis and audit testing.

Approach:

 Categorizing financial data by account, period, or

department.
 Preparing files for ease of access and cross-referencing.
 Outcome: Improved efficiency in identifying discrepancies
and trends.

Skills Gained:

 Data Management: Learned how to systematically store and

retrieve data.
 Efficiency: Enhanced productivity by organizing data in a
logical and accessible manner.
 Auditing (A subset of auditing)
Tasks:

 Vouching and verification of transactions.

 Reviewing internal controls and compliance with policies.

Skills Gained:

 Attention to detail in verifying documentation.

 Understanding audit trails and the significance of internal controls

 Preparing Data in Excel Sheet

Purpose: Data analysis, summaries, and audit working papers.
Techniques Used:-

 Use of formulas (SUM, XLOOKUP,VLOOKUP, ).

 Conditional formatting to highlight discrepancies.

 Impact: Enabled efficient data manipulation and reporting

 Skills Gained:
o Advanced Excel Skills: Gained proficiency in using
functions and tools to handle large datasets.
o Data Analysis: Developed the ability to identify patterns and
insights from financial data.
o Presentation Skills: Improved ability to present data in a
clear, visually appealing format.
  Tally
 Purpose: Handling accounting entries, ledger creation, and
reconciliation.
 Learning Outcome: Gained practical exposure to accounting
software and its role in the audit process.

 Tasks Performed:-
o Journal Entries: Posted day-to-day financial transactions.
o Ledger Maintenance: Created and updated ledgers for
various accounts.
o Bank Reconciliation: Matched company records with bank
statements to identify discrepancies.
o Report Generation: Generated reports like trial balance,
profit and loss statements, and balance sheets.
 Skills Gained:-
o Practical Accounting Knowledge: Enhanced understanding
of accounting principles and practices.
o Software Proficiency: Gained hands-on experience in using
Tally for accounting tasks.
o Accuracy and Reconciliation: Improved ability to detect
and correct errors in financial records.
Software used during internship :
 MS office
I used MS-office in making report on Copper Industry.
 MS Excel
I used MS-Excel in making observations of Electricity Bill
 Tally software
I used Tally software to learn how to create company, journal,
lager and recording entries .
DESCRIPTION OF THE PROJECT
The project titled “Audit of Madhyanchal Vidyut Vitran Nigam
limited (EUDD-06, LESA), Lucknow. The objectives of a
management audit aimed at covering all aspects of billing,
collection, and revenue activities within a specific division. It
emphasizes the importance of auditing to identify and correct errors
in billing. Auditors will review various cases of incorrect billing, such
as bills issued without actual an electricity usage, billing after
disconnection, delays in issuing bills, and discrepancies in
consumer data. In this we will also focus on cases where bills have
been revised and will analyze the reasons behind these revisions.
According to the guideline for us that a minimum sample size for
auditing bill revisions will be based on the monthly bill revision
report from the online billing system.
We have done audits of various branches or divisions like Keshav
Nagar, and Kapoorthala . In this, we have to give the list of months
from which we had to check the bill revision procedure. What are
the reasons for the bill revisions? Then we have to suggest,
wherever required, that they are not doing their work in an
appropriate manner, and after analyzing all, we have to prepare the
report and submit it within the guidelines.
In depth study of existing systems, procedures and controls for proper
understanding. Suggestions for improvement and strengthening.

(Detail of Meter
reading)
( Sample of An Electricity Bill with details on it )
(Sample of An Electricity Bill with details on it )
(Payment history of An Electricity bill)
( sample of recording in excel sheet )

( sample of recording in excel sheet )

( sample of recording in excel sheet )

( sample of recording in excel sheet )

( sample of recording in excel sheet )

(Sample of recording in excel sheet)

(Sample of recording in excel sheet)

This is the way we use to record the observation of an electricity bills and
related documents like meter reading report , application which includes the
reason of defect of meter , SIR report , payment history report , Reading
Defective ( it is an electricity bill . It is used when the current month’s meter
reading is higher than the previous month’s reading)
Auditing of electricity bills for Madhyanchal Vidyut Vitran Nigam
limited (EUDD-06, LESA), Lucknow . It involves a comprehensive
review of billing processes, revenue collection, and compliance with
applicable laws and regulations. The audit ensures transparency, accuracy,
and accountability in the financial management and operational efficiency
of electricity distribution companies .

Objectives of Electricity Bill Audit -

1. Revenue Assurance: Verify the accuracy and completeness of
revenue collection from electricity billing.
2. Compliance Check: Ensure compliance with statutory guidelines,
tariffs, and billing regulations issued by the State Electricity
Regulatory Commission (SERC) or Central Electricity Authority
(CEA).
3. Fraud Detection: Identify fraudulent activities such as meter
tampering, billing irregularities, or theft of electricity.
4. System Efficiency: Evaluate the efficiency of billing systems and
processes, including IT systems like SAP or Oracle.
5. Customer Grievance Resolution: Analyze complaints related to
incorrect billing and take corrective measures.

Scope of Audit-
The scope of the audit typically covers the following areas:

1. Billing Process-

 Meter Reading:
o Verify the accuracy of meter readings (manual or automated).
o Check for tampered meters or discrepancies in consumption
patterns.
 Billing Calculation:
o Ensure electricity consumption is billed based on the applicable
tariff slab.
o Validate fixed charges, energy charges, and additional
surcharges.
 Billing Frequency:
o Confirm whether billing is performed as per the prescribed cycle
(monthly/bi-monthly).
2. Tariff Application-

 Validate the implementation of tariff rates approved by the SERC.

 Review the categorization of consumers (e.g., domestic, commercial,
agricultural) and confirm they are billed under the correct tariff
category.
 Audit special tariffs for government entities or public utilities.

3. Revenue Collection-

 Verify the reconciliation of billed revenue with collections made.

 Cross-check payment modes (online, offline, NEFT/RTGS) for
authenticity.
 Identify unbilled consumers or delayed payments.

4. Subsidy Management-

 Validate government subsidies granted to eligible consumers (e.g.,

agricultural or below-poverty-line consumers).
 Reconcile subsidies claimed by the electricity company with
government disbursements.

5. Outstanding Dues and Recovery-

 Audit accounts with overdue bills to assess the effectiveness of

recovery mechanisms.
 Identify high-value defaulters and examine actions taken to recover
dues.
 Verify compliance with disconnection policies for non-payment.

6. Fraud and Theft Detection-

 Examine cases of unauthorized connections or bypassed meters.

 Analyze consumer consumption patterns for anomalies suggesting
theft.
 Check for duplicate or ghost consumer accounts used for fraudulent
billing.

7. Consumer Complaint Analysis-

 Review records of billing complaints and their resolution timelines.

  Investigate repeated complaints from specific areas or categories of
consumers.

8. IT Systems Audit-

 Assess the performance of the billing software for errors, delays, or

vulnerabilities.
 Verify audit trails and logs for changes to billing data.

Key Documents and Data for Audit-

1. Meter Reading Data: Logs of manual or automated readings for

sampled consumers.
2. Consumer Ledger: Details of bills issued, payments received, and
outstanding balances.
3. Tariff Orders: Approved tariff schedules and circulars issued by the
SERC.
4. Subsidy Records: Statements of subsidy claims and government
approvals.
5. Complaints Register: Records of consumer complaints and
resolutions.
6. MIS Reports: Monthly or quarterly management reports on revenue
and billing.

Audit Techniques Used -

1. Sampling:
o Select a sample of consumers across tariff categories for detailed
scrutiny.
o Use stratified sampling for diverse consumer segments.
2. Data Analytics:
o Identify anomalies in billing and consumption data.
o Use trend analysis to detect abrupt changes in consumption patterns.
3. Field Verification:
o Conduct physical verification of meters and consumer premises.
 4. Reconciliation:
o Cross-verify data from the billing system with financial records and
bank statements.
5. Interviews:
o Interact with meter readers, billing staff, and consumers to
understand process gaps.

Reporting-
The audit report should include the following sections:

1. Executive Summary: Key findings and areas of concern.

2. Detailed Observations:
o Irregularities in meter readings and tariff applications.
o Revenue leakages or fraud.
o System inefficiencies.
3. Recommendations:
o Procedural reforms to improve billing accuracy.
o Recovery plans for overdue bills.
o Measures to reduce theft and fraud.

Challenges in Electricity Bill Audit-

1. Data Accuracy: Incomplete or inaccurate records due to manual errors.

2. Consumer Resistance: Lack of cooperation from consumers during field
visits.
3. Fraud Concealment: Deliberate actions to hide theft or irregularities.
4. System Limitations: Legacy IT systems with limited capabilities for detailed
analysis.

By conducting a thorough audit of electricity billing processes, Vidyut

Corporations can enhance revenue collection, reduce losses, and improve
consumer trust. Let me know if you need assistance drafting a specific audit
checklist or format.
 FINDINGS / LEARNING OF THE PROJECT

 Data Management: -
Key Learning:
Enhanced proficiency in Excel, enabling efficient and organized
handling of large datasets.

 Details:
o Used advanced Excel functions (VLOOKUP, HLOOKUP)
o Organized data into structured formats, ensuring easy access
and manipulation for audits.
o Applied conditional formatting to highlight key trends and
discrepancies.

 Impact:
Improved accuracy and reduced time spent on data handling tasks,
enhancing productivity in reporting.

 Audit Procedures:-

 Key Learning:
Gained practical exposure to audit procedures, focusing on internal
controls and compliance during a special audit of MVVNL
(Madhyanchal Vidyut Vitran Nigam Limited).

 Details:

 Conducted vouching and verification of financial records to

ensure accuracy.
 Assessed the effectiveness of internal controls, identifying
weaknesses and suggesting improvements.
 Followed audit documentation standards, ensuring a clear audit
trail.
 Impact:
Developed a deeper understanding of audit processes, risk assessment,
and the importance of internal controls in preventing errors or fraud.

 Data Analysis:-
Key Learning:
Analyzed collected data to identify patterns, trends, and inconsistencies.

 Details:

 Performed comparative analysis using Excel tools.

 Identified discrepancies between financial records and supporting
documents.
 Generated insights that informed audit conclusions and
recommendations.

 Impact:
Improved analytical thinking and decision-making skills, enhancing the
ability to draw meaningful insights from complex data.

 Reporting and Observation:-

 Key Learning:
Reviewed and interpreted gathered information to derive actionable
insights for audit findings.

 Details:

 Prepared comprehensive audit reports summarizing key

observations and recommendations.
 Highlighted areas of non-compliance and suggested corrective
actions.
  Collaborated with auditors to ensure accurate reporting and
effective communication of findings.

 Impact:
Strengthened reporting skills and the ability to present findings clearly
and persuasive

 Tally:-

 Key Learning:
Acquired foundational knowledge of Tally, focusing on company
creation, error detection, and additional functionalities.

 Details:

 Learned how to create and manage company profiles in Tally.

 Posted and reviewed accounting entries to ensure accuracy.
 Identified and rectified errors in ledger entries.
 Explored Tally’s features, such as report generation and
reconciliation tools.

 Impact:
Gained practical skills in using accounting software, enhancing your
ability to manage financial records and reports.
REVIEW & SUGGESTIONS:

Despite the fact that the organization excels at everything and that everything is
neatly kept and controlled. But there are still some opportunities for progress,
whether it is a human being or an organization. As long as there remain
opportunities for development and growth, the organization must strive to be the
best it can be.

Review:

Strengths:

 Learning Environment:

The CA firm has provided a conducive learning environment, allowing interns to

gain hands-on experience in various aspects of financial management, including
Auditing and Report making.

 Practical Exposure:

The internship has offered practical exposure to real-world scenarios, especially in

the areas of auditing .

 Application of Knowledge:

Opportunities to apply theoretical knowledge, such as participation in Special

Audits have enhanced the practical understanding of accounting and auditing
concepts.
 Diversity of Tasks:

Engaging in a variety of tasks, from report making to applying advance excel and
auditing has provided a well-rounded experience, allowing interns to develop a
broad skill set.
Suggestions:

 Structured Training Programs:

Implement structured training programs for interns, ensuring they receive

comprehensive guidance on various tasks and procedures. This could include
workshops, seminars, or mentorship programs to enhance skill development.

 Feedback Mechanism:

Establish a regular feedback mechanism for interns, allowing them to receive

constructive feedback on their work. This fosters a continuous learning
environment and helps interns improve their skills.

 Documentation and Knowledge Sharing:

Encourage interns to document their learnings and experiences. This

documentation can serve as a knowledge-sharing resource for future interns,
contributing to a cumulative pool of institutional knowledge.

 Cross-Functional Exposure:
Consider providing interns with exposure to different departments within the CA
firm. This cross-functional exposure can broaden their understanding of various
aspects of financial services and strengthen their adaptability.

 Technological Integration:

Integrate the use of relevant accounting and auditing software in the internship
program. Familiarizing interns with industry-standard tools will enhance their
technical skills and make them more competitive in the workforce.

 Networking Opportunities:

Facilitate networking opportunities for interns within the firm. This could involve
interactions with senior professionals, allowing interns to learn from experienced
practitioners and build professional connections.
 Project-Based Learning:

Introduce more project-based learning opportunities for interns. Assigning projects

that simulate real-world scenarios can deepen their understanding and provide
practical problem-solving experience.

 Soft Skills Development:

Include soft skills development sessions as part of the internship program. Skills
such as effective communication, time management, and teamwork are crucial in a
professional environment.

 Diversity and Inclusion:

Promote a diverse and inclusive work culture. Encourage interns from various
backgrounds to contribute their unique perspectives, fostering a more dynamic and
innovative work environment.

 Exit Interviews:

Conduct exit interviews with interns to gather insights into their overall
experience. This feedback can be valuable in continuously improving the
internship program and addressing any areas that may
 CONCLUSION:
The internship experience was both enriching and diverse, encompassing a range
of financial and compliance tasks. One of the key highlights was successfully
handling Special Auditing and Report making. This not only deepened my
understanding of auditing procedures but also allowed me to navigate the intricate
rules and regulation and guidelines with these procedures. These tasks contributed
significantly to honing my regulatory compliance skills.

Participating in the special audit at Kapoorthala and Keshav Nagar was another
valuable aspect of the internship. This hands-on experience provided insights into
audit procedures and allowed me to identify areas for process improvement. The
ability to contribute recommendations for enhancing internal controls
demonstrated a proactive approach toward ensuring operational efficiency.
The preparation of Excel sheets emerged as a skill sharpened during the internship,
proving essential for efficient data management and analysis. Proficiency in
creating well-organized spreadsheets not only enhanced my data handling
capabilities but also proved useful across various financial tasks.

To sum up, the internship provided a platform for developing a variety of skills by
exposing participants to data management, audit procedures, report making, and
financial analysis. The internship's practical experience aided in the organizations'
operations while also promoting personal and professional development. The
capacity to diligently manage a variety of tasks and provide insightful analysis.
This internship was highly beneficial. I gained new knowledge, skills, and insights
into professional practices, particularly in a CA firm. I deepen my understanding of
data collection and analysis.
However, I recognize areas for improvement, such as building confidence in data
recording and completing tasks more efficiently. Despite technical challenges, this
experience highlighted the need for continuous learning and growth.
REFERENCES

 https://www.icai.org/
 https://en.wikipesia.org/wiki/Institute_of_Chartered_Accountants_of_India
 https://www.google.com
 http://www.mvvnl.in