Page 308 - CA Inter Audit PARAM

CA Ravi Taori
• General
• Studying the constitution under which the charitable institution has been set up.
• Verifying whether the institution is being managed in the manner contemplated by the
law under which it has been set up.
• Examining the system of internal check, especially as regards accounting of amounts
collected.
• Verifying in detail the income and confirming that the amounts received have been
deposited in the bank regularly and promptly.
➢ Major Income – Subscription & Donations /Legacies / Grants / Investments Income / Rent / Special
Function
• Subscriptions and donations
• examining the system of internal check regarding moneys received from box collections,
flag days, etc. and checking the amount received from representatives, with the
correspondence and the official receipts issued; paying special attention to the system of
control exercised over collections and the steps taken to ensure that all collections made
have been accounted for; and
• Ascertaining, if any, the changes made in amount of annual or life membership
subscription during the year.
• obtaining the printed list of subscriptions and donations and agreeing them with the
total collections shown in the accounts;
• verifying the total subscriptions and donations received with any figures published in
reports, etc. issued by the charity.
• Whether official receipts are issued;
• obtaining all receipt books covering the period under review;
• confirming that adequate control is imposed over unused receipt books;
• test checking the counterfoils with the cash book; any cancelled receipts being specially
looked into;

• Legacies – Verifying the amounts received by reference to correspondence with any figures and
other available information.

• Grants
• Vouching the amount received with the relevant correspondence, receipts and minute
books.
• Obtaining a certificate from a responsible official showing the amount of grants
received.

• Investments Income
• Vouching the amounts received with the dividend and interest counterfoils.
• Checking the calculations of interest received on securities bearing fixed rates of interest.
• Checking that the appropriate dividend has been received where any investment has
been sold ex-dividend or purchased cum-dividend.
• Comparing the amounts of dividend received with schedule of investments making
special enquiries into any investments held for which no dividend has been received.

• Rents
• Examining the rent roll and inspecting tenancy agreements, noting in each case:
o the amounts of the rents, and
o the due dates.
• Vouching the rents on to the rent roll from the counterfoils of receipt books and checking
the totals of the cash book.

• Special function, etc. – Vouching gross receipts and outgoings in respect of any special functions,
e.g. concerts, dramatic performance, etc., held in aid of the charity with such vouchers and cash
statements as are necessary. In particular, verifying that the proceeds of all tickets issued have
been accounted for, after making the allowance for returns.

➢ Major Expense
• Expenditure
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