Adit of an educational institution

Auditor should take following steps while doing the audit of an educational institution.

1. APPOINTMENT

He should check that his appointment is in order and should receive the letter of appointment.

2. RULES

He should study the legislation and rules governing the institution care fully. These can be had from the charter deeds and minute books of the institution.

3. CHECKING THE EFFICIENCY OF THE INTERNAL CONTROL SYSTEM

Auditor should check the efficiency of internal control system regarding cash and other assets. It should be checked that proper internal check system exists for cash collection.

4. VERIFIVATION OF THE INCOME AND EXPENDITURE ACCOUNT

INCOME

The main source of income for an education is fee received from students.
Following steps should be taken to verify fee collection.

• Checking student fee register.
• Collected fee should be classified among different heads. Such as tuition fee, library that correct amount is transferred in respective accounts.
• Auditor should vouch the cashbook with fee register to check that proper fee received has been allotted.
• He should check the late fee concession and the number of students to whom it has been allotted.
• He should check the late fee collection and fines collected from students.
5. CHECKING OF GRANTS AND RECEIPTS FOR CAPITAL NATURE
• Auditor should check the various grants received by the institution. Proper use of these grants should also be checked.
• The capital receipts should be capitalized and shown separately.

6. CHECKING OF THE EXPENSES ITEMS

• Auditor should check the expense items with their respective vouchers.
• Authorization to these expenses should be confirmed.
• It should be checked that internal check system is present in case of heavy expense items.

7. CHECKING THE ASSETS AND LIABILITIES

ASSETS

• Fixed assets should be checked with fixed asset register maintained. Their physical verification value depreciation should be checked.
• Any new assets purchased should be verified.
• Investments if any should be properly verified.
• Cash in hand and cash at bank should be verified.

Liabilities

• Long-term liabilities should be verified with their relevant papers.
• Short-term liabilities should be verified with their balance and respected papers.
• It should be ensured that the liabilities belong to the institution under audit.

Author: Vikash

2 Responses to “Adit of an educational institution”

  1. atul says:

    thanks for article , it helped me to write my assignments. God bless you.

    atul

  2. wambugu says:

    thanx 4 the helpful article

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