Page 305 - CA Inter Audit PARAM

CA Ravi Taori
OR
Sporting Club of India is a private club engaged in promotion of sports in the country. As an auditor of this
leading club, discuss any two points to ensure that expenditure incurred by club during the year is properly
authorised.
➢ Law & Internal Control System – Internal Check for Charging to Members
• Verify the internal check as regards members being charged with the price of foodstuffs and
drinks provided to them and their guests, as well as, with the fees chargeable for the special services
rendered, such as billiards, tennis, etc.
• Trace debits for a selected period from subsidiary registers maintained in respect of supplies and
services to members to confirm that the account of every member has been debited with amounts
recoverable from him.

➢ Major Income – Entrance Fees / Subscription
• Vouch the receipt on account of entrance fees with members’ applications, counterfoils issued to
them, as well as on a reference to minutes of the Managing Committee.
• Vouch members’ subscriptions with the counterfoils of receipt issued to them, trace receipts for
a selected period to the Register of Members; also reconcile the amount of total subscriptions due
with the amount collected and that outstanding.
• Ensure that arrears of subscriptions for the previous year have been correctly brought over and
arrears for the year under audit and subscriptions received in advance have been correctly
adjusted.
• See the Register of Members to ascertain the Member’s dues which are in arrear and enquire
whether necessary steps have been taken for their recovery; the amount considered irrecoverable

should be mentioned in the Audit Report.
• Check totals of various columns of the Register of members and tally them across.

➢ Major Expense – Purchase of Sports / Food etc.
• Vouch purchase of sports items, furniture, crockery, etc. and trace their entries into the respective
inventory registers.
• Vouch purchases of foodstuffs, cigars, wines, etc., and test their sale price so as to confirm that the
normal rates of gross profit have been earned on their sales. The inventory of unsold provisions
and stores, at the end of year, should be verified physically and its valuation checked.

➢ Major Assets – Investments / Inventory
• Inspect the share scrips and bonds in respect of investments, check their current values for
disclosure in final accounts; also ascertain that the arrangements for their safe custody are
satisfactory.
• Check the inventory of furniture, sports material and other assets physically with the respective
inventory registers or inventories prepared at the end of the year

➢ Other Points – Powers of Secretary
Examine the financial powers of the secretary and, if these have been exceeded, report specific case
for confirmation by the Managing Committee.

QNO Audit of Partnership Firm-Special Points Old Course –
(P16M/M
ADE.55 Bhaskar CNO – ADE.160 16E/N17M/N18R/M19M/N19E/M19R)
Discuss the matters which should be specially considered in the audit of accounts of a partnership.
OR
There are certain points which are required to consider specially in the audit of accounts of a partnership.
Discuss any three points briefly.

OR
CA Akash Virmani is auditor of a partnership firm consisting of 4 partners. During the year, one of the partners
has retired and another partner has joined the next day. Discuss, any one point, which shall be considered by
you to ensure that financial statements of firm are not misstated due to change of constitution of firm.

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