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21. he “spould sce that all depreciable asotts 8 beverly
22. He sho!
a DIT OF CHARITABLE INSTITUTIONS
Bite f a charitable institution,
iti mts 0
While auditing the accoun f
an auditor should take the following steps:
General: Bt laa
1 He should carefully examine the constitution and the rule,
writable institution, and note down thy
and regulations of the ¢
provisions affecting the accounts.
2. He should inspect the minutes book of the managing
committee and ascertain how far its resolutions have bee;
carried out.
5. He should see that the funds of the institution have beer
plied only for the purpose for which they are meant.
4. He should examine the minutes books and see that th
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speci 29
tees or the ma
n of the tru
tant payments, ¢
rae
penditure and inves
ganctio" Hees Is obtained
for mp? ments,
incomes
S, He should vouch the receipts from donations and
ptions as recorded fn the cash book with the eonucrian
suet eceipt books, regtster oF list of subseribers
of the ndence with the subscribers and donors
intary evidences
nd donors
and other
corres
docume
6, He should see that subs
iptions and donations in arrears
are duly adjusted and brought into account
7. He should see that subscriptions received in advance are
cartied forward and adjusted in accounts.
'g, He should check the receipts from legacies with the register
oflegacies. He should see that legacies due are properly adjusted
and brought into account.
9. Grants received from the Government or the local body
should be carefully checked.
10. He should vouch the receipts of rents from the properties
belonging to the institution with the rent roll, agreements with
the tenants and the receipts issued to the tenants.
11. He should vouch the income from investments. i.c..
Interest and dividend on securities, by reference to the
investment register, and the interest and dividend warrants.
If the income of the charitable institution is exempted from
tax, the auditor should see that the income-tax deducted at
source from the income from interest and dividends is recovered
from the income-tax authorities.
Expenditure:
12, He should see that a proper distinction has be
between capital expenditure and revenue expenditure.
13. He should vouch the important payments by reference {©
nutes book of the trustees or the managing committee.
14. He should see that all expenses incurred pertain (o the
activities of the institution by carefully examining the relevant
documents,
en made
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730
Miscellaneous:
15. He should verify the cash and be =. nec.
16. He should verify the investments. case che investments
d with the bank, he should ge 1 certificate from the
are lo
bank.
17. He should verify the other asscts of t’-e institution.
18. He should verify all the liabilities of ine institution.
9. He
19. He should see that the annual accounts of the institution
have been prep; i
prepared in the prescribed f+ P j
relevant regulations, ee ae gecoLcune stone
14. AMyr aw ws.
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