Page 295 - CA Inter Audit PARAM

CA Ravi Taori

IMPORTANT NOTE

➢ In this chapter there are institutions on which question is asked:
• Hospital, Education, Cinema, Club, Hotel, NGO’s

➢ You can remember this by visualizing Life cycle of a person:
1. A person is born – Hospital
2. As a kid goes to school – Educational Institute
3. As an adult more inclined towards movies, parties, food – Cinema hall, Clubs, Hotels
4. As one grows old more inclined towards charity – Charitable Institute, NGO’s.

➢ We have made a master answer for each of the above entities and have divided each master answer
into 5 major points
• Law & Internal Control
• Major Income
• Major Expense
• Major Asset
• Others

➢ You can go through the master answer and can write the relevant aspect of the master answer as
per what the question is asking.

Audit of Hospital -Special Point Old Course --
QNO Bhaskar CNO - ADE.020
(P16M/N16M/M16R/N17R/N18R/N19M/M19R/SM17/M18M
ADE.
01 /N18M/M19M/SM20/SM21/M21M/M22E/M22M)
New Course—(SM25)
Advise any six special points in an audit of hospital.
OR
The general transactions of a hospital include patient treatment, collection of receipts, donations, capital
expenditures. You are required to mention special points of consideration while auditing such transactions
of a hospital?
OR
You have been appointed auditor of Mis. Divine Children Hospital. Discuss any four important points that
would attract your attention while audit.
OR
M/s T & Co. Chartered Accountants, a partnership firm, is appointed as an auditor of Treatment Hospital
run by Smile Foundation, a charitable trust. Over and above the receipts of treatment of patients, during
the year trust has received donations from various donors to treat COVID-19 patients and also incurred
some capital expenditure for further development of the hospital. On some of the investment income,
income tax has been deducted. What are the special points to be considered by M/s T & Co. while auditing
such transactions of Treatment Hospital?
Answer The Special Steps Involved In Such An Audit Are Stated Below-
➢ Law & Internal Control System – Internal Check in Stores

• Internal Check: Examine the internal check as regards the receipt and issue of stores;
medicines, linen, apparatus, clothing, instruments, etc. so as to ensure that purchases have
been properly recorded in the Inventory Register and that issues have been made only
against proper authorization.

➢ Major Income – Patient Fees / Subscription / Legacies & Donation / Grant & TDS Refund /
Investment Income / Collection

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