Page 299 - CA Inter Audit PARAM

CA Ravi Taori
previous year and values applied to various items should be test checked.

➢ Other Points – Caution Money / Refund of Tax / Annual Statement
• Confirm that caution money and other deposits paid by students on admission, have been
shown as liability in the balance sheet not transferred to revenue, unless they are not
refundable.
• Confirm that the refund of taxes deducted from the income from investment (interest on
securities etc.) has been claimed and recovered since the institutions are generally exempted
from the payment of income-tax.
• Finally, verify the annual statements of account and, while doing so see that separate
statements of account have been prepared as regards Poor Boys Fund, Games Fund, Hostel
and Provident Fund of staff, etc
Author’s Note
• Text in ITALICS are examples by author for better understanding of answer.
• This is a master answer you can write the relevant aspect of the master answer as per what
the question is asking.

QNO— LLP - Books of Accounts New Course – (N22E)
ADE.17.50 Bhaskar CNO - ADE.180
Ban LLP is formed during the year 2021-22. They are not sure about the type of books of accounts to be
maintained. What are the books of accounts that the LLP is required to maintain?
Answer Books of Accounts Ban LLP is required to maintain: An LLP shall be under obligation to maintain annual
accounts reflecting true and fair view of its state of affairs. LLPs are required to maintain books of accounts
which shall contain-
1. Particulars of all sums of money received and expended by the LLP and the matters in respect
of which the receipt and expenditure takes place,
2. A record of the assets and liabilities of the LLP,
3. Statements of costs of goods purchased, inventories, work-in-progress, finished goods and
costs of goods sold,
4. Any other particulars which the partners may decide.

QNO Audit of Educational Institute- Assets & Liabilities Old Course – (M21E)
ADE.18 Bhaskar CNO - ADE.040 New Course—(SM25)

You have been appointed as an auditor of VJM Schools. Discuss the points which merit your consideration
as an auditor while verifying Assets and Liabilities of VJM Schools.
OR
You have been appointed as an auditor of VJM Schools. Discuss the points which merit your consideration
as an auditor while verifying Assets and Liabilities of VJM Schools
Answer Student Related
1. Report any old heavy arrears on account of fees, dormitory rents, etc. to the Managing Committee.
2. Confirm that caution money and other deposits paid by students on admission, have been shown as
liability in the balance sheet not transferred to revenue, unless they are not refundable.
Investment Related
3. See that the investments representing endowment funds for prizes are kept separate and any income
in excess of the prizes has been accumulated and invested along with the corpus.
Inventory Related
4. Ascertain that the system of ordering inspection on receipt and issue of provisions, foodstuffs,
clothing, and other equipment is efficient and all bills are duly authorised and passed before payment.
5. Verify the inventories of furniture, stationery, clothing, provision, and all equipment etc. These
should be checked by reference to Inventory Register or corresponding inventories of the previous
year and values applied to various items should be test checked.

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