For GST audit, the auditor is required to understand the following:
The nature of the entity, (including its operations covering Business Processes, major inputs, major outputs, wages etc.,) and the entity’s ownership and governance structure.
Relevant industry, regulatory and other external factors including the applicable cost and financial reporting framework.
Understanding of internal controls and Information Technology and control system of the entity.
Updated knowledge of the GST Act, Rules, notifications and clarifications issued by the GST authorities.