Escolar Documentos
Profissional Documentos
Cultura Documentos
Acknowledgement
We owe a great many thanks to a great many people who helped
and supported us during the writing of this project.
We express our thanks to the Principal Dr. (Mrs.) Shakuntala A.
Singh, coordinator Mr. D. M. Murdeshwar and Librarian Faculty of,
K.G. Joshi College of Arts and N.G. Bedekar College of Commerce,
Thane for extending their support.
Our deepest thanks to Asst. Prof. Iyer Seethalakshmi B the
Guide of the project for guiding and correcting various documents with
attention and care. She has taken pain to go through the project and
make necessary when correction as and needed.
We would also thank our Institution and our faculty members without
whom this project would have been a distant reality. We also extend our
heartfelt thanks to our family and well-wishers.
Sr.no Names
Roll nos.
Keval Patel
26
Komal Waghmode
27
Anuprita Sakharkar
28
Fiona Fernando
29
Supriya Pandhire
30
K.G. Joshi College of Arts and N.G. Bedekar College of Commerce, Thane
T.Y.B Accounting and Finance A Division
Date of Submission -10/03/2014
Special Audit
Audit of different kinds of institutions viz., educational institutions,
hospitals, hotels, charitable trusts, etc. differ in nature, approach, and
scope. Every audit vis--vis every undertaking has its unique features.
Specialised undertaking call for special knowledge from auditor, or for
which there are special accounting or auditing requirements.
Government institutions.
ii.
iii.
Government-affiliated institutions.
iv.
Private institutions.
On the basis of the nature of the institutions, the activities and mode of
maintenance of books of accounts and records may also differ and the
auditor will take into consideration these deviations at the time of his audit.
For which he explained to us the following information 1. Preliminary work- The auditor should try to obtain knowledge
ensure that these have been duly complied with, specially the decisions as
regards the operation of bank account and sanctioning of expenditure.
Operation of bank accounts
He must obtain a list of books of accounts maintained and persons who
maintain them, authorise the financial transactions, disburse the money
involved,the decisions taken regarding operation of bank account etc.
Review of the Internal Control System
He should ensure that there operates a system of internal check which is
effective, Judge its adequacy and efficiency. He must study the latest audit
report and note the nature of observations and qualifications contained
therein. Study and evaluate the accounting system in order to determine
the extent of audit to be performed.
Hostel dues
Confirm that hostel dues were recovered before students accounts were
closed and their deposits of caution money refunded.
Rental and any other income
Verify rental income from landed property with the rent rolls, etc. Vouch
income from endowments and legacies, as well as interest and dividends
from investment; also inspect the securities in respect of investments held.
Report any old heavy arrears on account of fees, dormitory rents, etc., to
the Managing Committee.
Interest income
The income from property, investment etc., should be properly verified from
the vouchers. Examine whether interest due on investments has been
received with reference to investments register and bank pass book.
Caution money
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3. Payments
Distinction between Capital and Revenue Expenditure
The auditor should see that proper distinction has been made between
capital expenditure and revenue expenditure in the accounts.
Vouching of Expenses
He should check all expenses with reference to the entries in the cash book
with the help of bills, receipts etc.
Salary
See that increase in the salaries of the staff have been sanctioned and
minuted by the Committee.Auditor should vouch the amount of payment of
salaries to staff with reference to the salary/wages register. If salary is paid
in cash, he should vouch through cash book and see the accuracy and
authenticity of the transaction or if paid by cheque, the counterfoils of the
cheque should be examined. He should verify the bank pass book and
check the bank statement. Auditor should pay special attention to the
increment earned by the staff sanctioned by the competent authority. While
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The auditor should verify the annual statements of account and while doing
so, he should ensure that separate statements of accounts have been
prepared as regards, Poor Students Fund, Games Fund, Library Fund etc.
4. Assets
Fixed assets
The auditor should physically verify the stock of laboratory equipments,
sports goods, stationary, library books, furniture (tables, benches),
buildings, and should see whether proper stock register or records have
been maintained in this respect. He should verify the addition to the fixed
assets purchased and entries in the fixed assets register. Ensure that
depreciation charged is adequate and has been properly disclosed.All
unserviceable assets, equipments, furniture, etc. should be written off.
Stock taking
Ascertain that the system 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. Verify the inventories of
furniture, stationery, clothing, provision and all equipment, etc. These
should be checked by reference to Stock Register and values applied to
various items should be test checked.The stock of equipment, stationary,
furniture should be carefully verified.
Accumulated Investments
He should note the investments representing endowment funds for prizes
are kept separate and any income in excess of the cost of prizes has been
accumulated and invested with the original fund. He should physically
verify the investments the additions and deductions during the year with
reference to sanction of proper authority and examine compliance with legal
requirements.
Verification of cash in hand and bank balances
He should verify the cash balances by physically counting the same and
vouch the bank balances with available documentary evidence on date of
balance sheet.
Loans and advances
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Verify authority for making loans and advances to employees, students, and
others. Examine the possibility of doubtful recovery and verify total amount
outstanding in the books with copies of balances confirmation certificates
issued to the concerned person.
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AUDIT REPORT
Audit report under section 10(23C) of the Income-tax Act, 1961, in the case of any
fund or trust or institution or any university or other educational institution or
any hospital or other medical institution referred to in sub-clause (iv) or sub-clause
(v) or sub-clause (vi) or subclause (via) of section 10(23C).
The prescribed particulars are annexed herewith :
Place:
Date: Signed
Membership No.
Address
The Trust,
ABC College.
We have audited the accompanying financial statements of ABC college which comprise the
Balance Sheet as at 31 March 2013, & the Statement of Income and Expenditure and for the
year then ended, and a summary of significant accounting policies and other explanatory
information.
procedures that are appropriate in the circumstances. An audit also includes evaluating
the appropriateness of accounting policies used and the reasonableness of the
accounting estimates made by management, as well as evaluating the overall
presentation of the financial statements.
We believe that the audit evidence we have obtained is sufficient and appropriate
to provide a basis for our audit opinion.
Opinion
(i)* I/We have examined the Balance Sheet as at and the Income and Expenditure or
Profit and Loss Account for the year ended on that date attached herewith of (name of
fund or trust or institution or any university or other educational institution or any
hospital or other medical institution).
(ii) *I/We certify that the Balance Sheet and the Income and Expenditure Account or
Profit and Loss Account are in agreement with the books of account maintained by the
head office at and branches.
(iii) Subject to comments below
(a) *I/We have obtained all the information and explanations which to the best of
*my/our knowledge and belief were necessary for the purpose of the audit.
(b) In *my/our opinion, proper books of account have been kept by the head office and
branches of the above-named fund, or trust, or institution or any university or other
educational institution or any hospital or other medical institution so far as appears
from *my/our examination of the books of account.
(c) In *my/our opinion and to the best of *my/our information and according to the
information given to me/us, the said accounts read with notes thereon, if any, give a
true and fair view (1) In the case of the Balance Sheet, of the state of affairs of the above-named fund, or
trust, or institution or any university or other educational institution or any hospital or
other medical institution as at and
(2) In the case of Income and Expenditure Account or Profit and Loss Account, surplus
or deficit or profit or loss for the year ended on that date.
ANNEXURE
Report on Other Legal and Regulatory Requirements
Statement of particulars
PART A-GENERAL
1. Name of the found or trust or institution or any university or other educational
institution or any hospital or other medical institution.
2. Address
3. Permanent Account Number
4. Assessment Year
5. Sub-clause of section 10(23C) under which the fond or trust or institution or any
university or other educational institution or any hospital or other medical institution is
seeking exemption.
6. Number and date of notification/approval of the fond or trust or institution or any
university or other educational institution or any hospital or other medical institution.
PART B - APPLICATION OF INCOME FOR CHARITABLE OR RELIGIOUS OR
EDUCATIONAL OR PHILANTHROPIC PURPOSES
7. Nature of charitable/religious/educational/philanthropic activity [as referred to in sub-clauses (iv),(v),(vi)
or (via) of section10(23C)]
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8. Total income of the previous year of the fond or trust or institution or any university or other educational
institution or any hospital or other medical institution
9. Amount of income of the previous year applied during the year wholly and exclusively to the objects for
which it is established
10. Amount of income of the previous year accumulated for application, wholly and exclusively, to the
objects for which it is established; to the extent it does not exceed 15% of income of that year.
11. Amount of income, exceeding 15% of income of the year, accumulated in accordance with clause (a) of
the third proviso to section 10(23C).
12. (a) Whether, during the previous year, any part of the income, not exceeding 15% of income
accumulated in any earlier year, was applied for purposes other than to the objects for which it is established
or has ceased to be accumulated for application thereto?
(b) If the answer to (a) above is 'yes', then give details of income so applied or ceased to be so accumulated
13. (a) Whether, during the previous year, any part of the income of any earlier year exceeding 15% of the
income, that was accumulated in accordance with clause (a) of the third proviso to section 10(23C) in that
year, was applied for purposes other than to the objects for which it is established or has ceased to be
accumulated for application thereto?
(b) If the answer to (a) above is 'yes', then give details of income so applied or ceased to be so accumulated
14. (a) Whether, during the previous year, any part of the income of any earlier year exceeding 15% of the
income, that was accumulated in accordance with clause (a) of the third proviso to section 10(23C) in that
year, was not utilized for purposes for which it was accumulated during the period for which it was to be
accumulated?
(b) If the answer to (a) above is 'yes', then give details thereof, together with amount of income not so
utilized.
Conclusion
From this report we learnt the importance and the procedure of audit
conducted in an educational institution. We also got a life time
experience in going through the actual process of audit. We gained a
direct practical knowledge from an auditor.
Objective
The audit of educational institutions is essential to see whether it is
functioning well. To ensure that the objectives of the organization are
fulfilled. It is a service organization & hence has to fulfil certain needs
under the law.
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Thanking you.
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