Ledger Scrutiny

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19 July 2010 what are the aspects to be covered in ledger scrutiny....what is its role in an audit

CA Ravi Sisodia

CA Ravi Sisodia (Expert)
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19 July 2010 Ledger scrutiny is the overall assessment of accounts of a concern. It is a process intitiated with a view to ensure true and fair concept. Any irregularity (Whether it may be error or a statutorial non-compliance) may be bought into light. Just by scrolling down the transaction that has occured in an account with adequate narrations, could be very helpful in the process of scrutiny for identifying whether the accounts reflect a true and fair view. Before resorting to ledger srutiny, the auditor should ascertain the extent to which it can be adopted. It can be detailed or restricted to some class of accounts.

Some of the following points to be checked for different leadgers on sampling basis or some logical selection >
1. Opening Balances
2. Date of transaction.
3. Type and nature of transactions.
4. Whether the transaction is posted to the right ledger account and is correctly debited or credited.
5. The arithmetical accuracy of the ledger.
6. Closing balance of the ledgers.