Audit of educational trust

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

10 October 2013 I have been appointed as Statutory Auditor of one of the Educational Trust in my city. The trust have many school and each school have many section. I want to know while doing audit which documents(like 12A Certificate) should be collected from client? Which documents must form part of my audit file? What precautions should be taken while doing audit and making audit file?

Sanket

Sanket (Expert)
Follow

10 October 2013 1. The auditor should go through the University
Act. Trust deeds and should note the rules and
regulations relating to accounts. The governing
body may pass resolutions from time to time in
respect to accounts. A copy of minutes books
should be made available to him so that he may
be able to confirm whether the decision of the
government body have been compiled with.
2. Auditor should obtain a copy of budget or
financial statements to study of different heads
of income and expenditure.
3. Auditor should thoroughly assess the strength
of internal check.
4. Auditor should vouch the grant-in-aid from
the government carefully.
5. Auditor should verify the receipts of monthly
fees from students, from counterfoils or carbon
copy of the receipts. He should also see whether
cash received has been banked daily or not.
6. Other charges from the students such as
examination fees, laboratory fees, fines etc.
should be carefully verified.
7. Any fees received in advance should be
properly adjusted.
8. The concession of fees and other charges
should be duly authorised by the proper
authority. Any charges becoming irrecoverable
should be written off only after proper authority
has recommended.
9. Any grant-in-aid or funds received for a
particular purpose must be utilised for the same.
10. The donations and other subscriptions from
the various authorities have been accounted for
and acknowledged.
11. The income from property, investment etc.,
should be properly verified from the vouchers.
12. Auditor should vouch the amount of salaries
paid with the Salary Register. Any increment
given to an employee shall be duly sanctioned.
13. The staff provident fund should be verified
and it should be seen that it is invested as per
the rules.
14. The establishment expenses must be
carefully vouched and it should be seen that
capital expenditure has not been treated as
revenue expenditure or vice versa.
15. The payment of scholarship should be
verified with the receipt from students and
Scholarship Register.
16. All the assets and liabilities should be
properly exhibited in the balance sheet.
17. The stock of equipment, stationary, furniture
should be carefully verified.
18. While making payment of staff salaries,
income tax should be deducted at source and
shall be duly deposited with the Income Tax
Department.