AUDIT PROGRAMME - AUDIT PROGRAMME 4.2 An audit programme is detailed plan of the auditing work to be performed specifying the item in the financial

AUDIT PROGRAMME - AUDIT PROGRAMME 4.2 An audit programme is...

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AUDIT PROGRAMME 4.2. An audit programme is detailed plan of the auditing work to be performed, specifying the item in the financial statements and allocating tentative time required. It provides a guide in arranging and distributing the work and in checking against the possibility of omissions. In general, the audit programme should contain the following points:- i) Examining regulations of the society (Bye-laws etc.) as they may have bearing on the system of accounts followed. ii) Vouching cash received by way of share capital with reference to the Register of members and copies of the receipts issued to them. Check subscriptions of nonmembers, if any. iii) Vouching receipts from deposits, if any. iv) Vouching grants from the Government, if any, with reference to the letter authorizing such grants. v) Checking the loans borrowed from Banks. vi) Vouching payments thoroughly. vii) Vouching the receipts from interest on loans granted. viii) Scrutinising of cashbook and verification of he cash in hand. ix) Verification of the investments. x) Verification the stock thoroughly. xi) Ensuring that Reserve Fund has been created as per Rules. xii) Examining the payment of dividends to members. xiii) Certifying the accounts viz. Profit & Loss Accounts, Balance Sheet. xiv) Drafting a report. 10 4.4. A model audit programme is given at the end of this chapter. This may be suitably amended according to the needs of a particular audit and the peculiarities of the activities undertaken by a society. AUDIT NOTE BOOK 4.5. An audit note book is a written record of queries made, replies furnished there against, correspondence entered into, observations made at the time of checking etc. Some of the salient points required to be noted down in an Audit Note Book are indicated below:- 1. List of books of account maintained.
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2. Names & designation of the members of the Committee and the Officials. 3. Points requiring further explanations and clarifications. 4. Particulars of missing vouchers, the duplicates of which have to be obtained. 5. Errors and frauds, if any discovered. 6. Totals or balances of books account, Bank reconciliation statement. 7. Dates of commencement and completion of audit. 8. Provisions in the Rules & Bye-law of the society effecting the accounts and audit. 9. Points which have to be incorporated in the audit report etc. WORKING PAPERS 4.6. Working papers are those papers which contain essential facts about the accounts so that the auditors may not have again to go over the accounts. These form a part of the audit report. This shall contain:- i) Audit programme duly completed, showing the nature of work, the extent of checking and the initials of the person undertaking the work. ii) Working trial balance. iii) Schedules of the debtors and creditors, fixed assets, investments etc.
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