Page 297 - CA Inter Audit PARAM

CA Ravi Taori
QNO Audit of Hospital- Income and Expenditure- Old Course -- (P16M/N16R/N20R/N19E)
ADE.10 Bhaskar CNO - ADE.020
Mention any ten special points to be examined by you in the audit of Income and Expenditure of a

Charitable Institution running a hospital.
Answer Refer CNO ADE.01- Major Income & Major Expenditure

Audit of Educational Institute -Special Point- Old Course -- (P16M/M16M/M17R/M18M/
QNO Bhaskar CNO - ADE.040 M21/M22M/N22M)
M18R/M19M/N19R/S19M/SM20/S
ADE.15 New Course—
(SM25/N23E/M24M)
Explain and also state the role of auditor with respect to the following in case of a school:
(i) The fees from the students.
(ii) Other Receipts/Grants & Donations
OR
Mention the special points to be examined by the auditor in the audit of a charitable institution running
hostel for students pursuing the Chartered Accountancy Course and which charges only Rs 500 per month
from a student for his lodging/boarding.
OR
You are auditor of a school operating in your city. During audit of a year, it is noticed that fees concessions
to students have been provided in substantial number of cases. Discuss, how, you as an auditor, would
proceed to verify the same?
OR
CA Z is appointed as the auditor of Chanakya Open University which offers higher learning educational
courses through the Distance Mode of Education. Discuss four steps involved in his audit of other
receipts/grants and donations received by the University.
Answer ➢ Law & Internal Control System – Act, Regulation / Minutes
• Act / Regulations / Deed

In the case of a university, refer to the Act of Legislature and the Regulation framed
thereunder. Examine the Trust Deed or Regulations, in the case of school or college and note
all the provisions affecting accounts.
• Minutes
Read through the minutes of the meetings of the Managing Committee or Governing Body,
noting resolutions affecting accounts to see that these have been duly complied with,
specially the decisions as regards the operation of bank accounts and sanctioning of
expenditure.

➢ Major Income – Student Fees / Hostel Dues / Concession / Donation / Rental Income
• Students Fees
• Check names entered in the Students Fee Register for each month or term, with the
respective Class Registers, showing names of students on rolls and test amount of
fees charged; and verify that there operates a system of internal check which ensures
that demands against the students are properly raised.
(Class Register → Student Fees Register → Demand of Fees to all Students)

• Check fees received by comparing counterfoils of receipts granted with entries in the
Cash Book and tracing the collections in the Fee Register to confirm that the revenue
from this source has been duly accounted for.
(Collection → Receipt Issued → Carbon Copy / Counterfoil → Cash Book → Fee
Register)

• Total up the various columns of the Fees Register for each month or term to
ascertain that fees paid in advance have been carried forward and that the arrears
that are irrecoverable have been written off under the sanction of an appropriate
authority.

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