Form 3CD Insight-to-Advisory Engine
Problem
Tax audit work often produces clause-wise checklists but misses “connected thinking” across ledgers, GST, TDS, payroll, fixed assets, banking, and prior-year positions. This prompt converts raw audit/compliance data into a clause-mapped risk view, evidence-backed conclusions, and proactive advisory opportunities—ready to present at Executive / Manager / CA Expert depth while keeping the CA’s professional judgment central.
Prompt Input
A) Client data to paste / attach (as available):Master data: PAN, GSTIN(s), constitution, business model, locations, related parties list, nature of revenue, significant contracts.Financial data: Trial Balance, ledger dump (GL), journal entries, notes/schedules, segment/product-wise revenue if available.Indirect tax: GSTR-1, GSTR-3B, GSTR-2B, e-invoice summary (if applicable), ITC register, RCM workings, credit note/debit note log.Direct tax: Prior year ITR + tax audit report (3CD), current year tax computation draft (if any), depreciation schedule (Companies Act + IT Act), TDS/TCS returns (24Q/26Q/27Q/27EQ), challans, Form 26AS/AIS/TIS summary.Payroll & vendor compliance: Salary registers, contractor payments, MSME vendor list/aging, high-value expense ledgers (commission, brokerage, freight, advertising, repairs, rent, interest, professional fees).Banking & cash: Bank statements (summary acceptable), cash book summary, high-cash transaction log (if any).Policies & assertions: Accounting policy notes (method of accounting, inventory valuation, revenue recognition), management representations (draft), list of litigation/notices (if any).B) Reusable master prompt (copy-paste):Role & stance: Act as a senior Indian Chartered Accountant leading a tax audit under Form 3CB–3CD. Your job is to support professional judgment—not replace it. Stay within Indian Income-tax Act, Tax Audit reporting under Form 3CD, and broadly accepted ICAI ethical expectations. If any input is missing, ask targeted questions and clearly label assumptions.Objective: From the data provided, build a “Clause-to-Client Insight Pack” that:identifies strategic tax/audit risks and likely 3CD clause triggers,detects compliance gaps across TDS/TCS, GST, and books,generates advisory opportunities (cashflow, controls, tax planning risk mitigation) that are realistic for this client,supports each conclusion with evidence references to the provided data (ledger name, account code, voucher IDs, period, return month, challan/statement line, etc.), andpresents outputs at three professional levels: Executive, Manager, and CA Expert.Working method (mandatory):Step 1: Build a “Data Readiness Map” listing what is provided vs missing vs inconsistent (with impact).Step 2: Create a “3CD Clause Heatmap”: For each likely applicable clause, rate Risk (H/M/L), Effort (H/M/L), and Evidence Strength (Strong/Medium/Weak).Step 3: Perform cross-link checks (examples):Revenue vs GST outward supplies (GSTR-1/3B vs books).ITC vs expense capitalization/blocked credits flags (2B vs ledgers).TDS applicability vs expense ledgers and vendor nature (with practical red-flag logic).Depreciation and capitalization integrity (repairs vs capex, CWIP aging, put-to-use hints).Related party / specified persons risk indicators (unusual margins, end-year entries, credit terms).Cash/bank anomaly cues (round-tripping indicators, frequent contra patterns, large manual JEs near year-end).Step 4: Produce an “Evidence-Backed Issues Register” with columns: Issue | 3CD clause(s) impacted | Potential tax exposure type (disallowance/interest/penalty/litigation) | Evidence pointers | Questions for client | Recommended audit procedures | Suggested remediation.Step 5: Convert the issues into “Client-Ready Advisory Opportunities” (control fixes, process changes, documentation readiness, funding/cashflow impact, vendor contracting improvements). Output format (mandatory):Executive View (1 page max): Top 7 risks + Top 5 opportunities + “Decisions required from management.”Manager View: Clause Heatmap + Issues Register + PBC (Prepared-by-client) request list prioritized.CA Expert View: Clause-wise technical narrative with defensible reasoning, assumptions, and evidence pointers; clearly separate facts vs judgment.Guardrails:Do not invent numbers, challan details, sections, or confirmations. Use “Not provided” where required.Where law interpretation is uncertain, list competing views and what additional facts would resolve it.Keep the tone suitable for an ICAI file note and partner review.
Prompt Output
Executive View: A crisp, board-readable brief with top risks/opportunities, each linked to practical evidence references and management decisions required.Manager View: A structured clause heatmap, issues register, prioritized client query list (PBC), and recommended audit procedures aligned to risk.CA Expert View: Clause-wise defensible narratives separating facts/assumptions/judgment, including alternative positions and documentation needed to support reporting.Optional add-ons (if inputs allow): red-flag journal entry list, vendor compliance clustering (MSME/TDS/GST), and a “remediation roadmap” with 30–60–90 day actions.