Here's a practical and easy-to-follow guide that helps newly qualified CAs confidently begin, plan, execute, and complete their very first audit assignment with clarity, structure, and professionalism.
CA Tushar Makkar | Nov 18, 2025 |
Your First Audit as a CA: Simple Tips to Get Started
How to start your first audit assignment as a CA is what most newly qualified Chartered Accountants search online after getting their ICAI membership. You’ve worked hard through articleship, cleared all exams, and now it’s time for real action. The good news? Every CA has been in your shoes, and yes, it does get easier.
First audit work for chartered accountants in India usually starts small—maybe a tax audit under Section 44AB, a small company audit, or even a bank branch audit. These are great starting points because they help you build confidence without overwhelming pressure.
Most new CAs feel nervous signing their first audit report. That signature means you’re taking responsibility, and it’s completely normal to feel the weight of it. Just remember, your articleship trained you for exactly this moment.
Audit planning checklist for new CAs doesn’t need to be complicated. Before visiting your client, understand what type of business they run. If it’s a retail shop, know how retail works. If it’s a manufacturing unit, understand the basics of their production.
Read last year’s financial statements if available. Check what the previous auditor reported. Make a simple checklist of documents you’ll need—purchase bills, sales invoices, bank statements, GST returns, and TDS records.
Pro Tip: Create a timeline working backwards from your deadline. If a tax audit report is due September 30, plan to finish fieldwork by August 31, draft by September 15, and leave buffer time for reviews.
Essential audit documents for CA start with your engagement letter. Never skip this—it protects both you and your client by clearly stating what work you’ll do and what you won’t.
Your audit file should have:
Keep everything organised digitally. Use folders by year, client name, and sections like “Revenue,” “Expenses,” “Inventory”, etc.
How to communicate with clients during audit matters more than you think. Most small business owners in India aren’t accounting experts—they’re busy running their businesses. When you ask for documents, be specific about what you need and why.
Instead of saying “show me all purchase records,” say “I need purchase invoices above ₹50,000 for April 2024 to March 2025 with corresponding payment proofs.”
If you find issues, explain them simply. Don’t just say “your TDS compliance is wrong.” Explain what’s wrong, why it matters, and how to fix it going forward.
Example: A textile trader in Surat might not understand why you need transport receipts. Explain that these proved goods were actually moved, which is important for GST and income tax purposes.
Mistakes new CA make in the first audit include trusting everything the client says without verification. Your job is to verify, not just accept. If they say inventory is worth ₹10 lakhs, check stock registers, do physical verification or at least sample checking.
Another mistake is poor documentation. If your working papers don’t clearly show how you concluded, they’re incomplete. Write notes explaining your audit steps—future you (or ICAI review) will thank you.
Don’t ignore materiality. A ₹2,000 error in a business with a ₹50 crore turnover is different from the same error in a ₹5 lakh turnover business.
Standards on Auditing practical tips are simpler than you think. Keep SA 230 (Documentation), SA 500 (Evidence), and SA 700 (Audit Opinion) handy on your phone. These aren’t just exam topics—they tell you how much evidence is enough and how to document your work.
When confused about any procedure, refer to the relevant SA. They’re written for practical use, not just theoretical knowledge.
What to do when clients disagree during an audit happens often. Maybe they claimed wrong GST credits or didn’t make provisions for bad debts. When you point this out, some might push back.
Stay professional but firm. Your CA registration and reputation are more valuable than any single assignment. If something is materially wrong, you have clear options:
Example: A Delhi-based startup founder once asked a new CA to show lower profits to save tax, even though the numbers didn’t support it. The CA refused politely and offered to find legal tax-saving options instead. The client eventually respected the honesty.
Tax audit tips for new CAs in India require attention to Form 3CD. Each clause needs careful checking:
Always cross-check numbers in Form 3CD with the income tax return and financial statements. Mismatches create problems during assessment.
Bank concurrent audit for CA is a good opportunity for steady work. If you’re empanelled with PSU banks like Punjab National Bank or State Bank of India, focus on:
Follow RBI guidelines strictly for bank audits—they’re different from regular company audits.
How to get audit clients as a new CA starts with your network. Tell family, friends, and their businesses that you’re now practising. Join local CA association meetings, attend CPE programs, and don’t hesitate to connect with senior CAs.
But here’s what matters most: do good quality work. One satisfied client will refer you to three others. One poorly done audit will haunt your reputation.
When drafting your first audit report, check everything twice:
Read it like you’re a bank manager deciding whether to give them a loan. Does everything make sense? Is anything unclear?
Pro Tip: Keep ICAI’s sample audit report formats handy. Don’t reinvent the wheel; follow standard formats and modify them for your specific situation.
CA professional development after qualification never stops. Tax laws change, accounting standards get updated, and new Auditing Standards are issued. Complete your CPE hours not just for compliance but for genuine learning.
Join WhatsApp or Telegram groups where CAs discuss practical problems. When you’re stuck, ask senior CAs; nobody expects you to know everything from day one.
Your first audit as a CA in India might feel scary, but you’re more prepared than you think. Your articleship and exams trained you for this. Take it step by step, ask questions when unsure, and always prioritise ethics over convenience.
The Standards on Auditing and the ICAI Code of Ethics are your foundation. Build your practice on integrity, and success will follow. Before long, you’ll be the one advising the next batch of nervous new CAs.
Trust your training, stay ethical, and keep learning. You’ve got this!
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