06 December 2009
1. At first step; Ledger scrutiny is an overview of all the ledger accounts.
2. Focus on those accounts where some irregularities may be.
If all the expenses and income are in line with the previous year's figures and current year's working; then in details these are not checked.
If certain accounts are not moving according to the working of the company then these accounts can be thoroughly checked. Sometimes even full checking is not required.
For example; if the closing balance of one debtor is the same as is opening. This account may be doubtful and bad. You may find that still there is no provision created for such account.
If not taken care now; book results may show wrong results.
Similarly; if salaries are paid more than in comparison to previous year without any increase in the operations; there may be some issues which are to be taken into account.
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