Conducting Audit of Educational Institution, Educational Institution Audit

Conducting Audit of Educational Institution, This article is for those who have work of audit for educational institutions and so they need to understand.

CA Yash Shah

Conducting Audit of Educational Institution CAknowledge

Conducting Audit of Educational Institution,This article is for those who have work of audit for educational institutions and so they need to understand how the audit should be conducted and how the system of the educational institution works. What are there incomes and what are the expenses, through which they can track any fraud which might be have been done. Check More Details for “Conducting Audit of Educational Institution”From below..

Conducting Audit of Educational Institution

The special steps involved in their audit are the following:

1. Examine the Trust Deed or Regulations, in the case of school or college and note all theprovisions affecting accounts. In the case of a university, refer to the Act of Legislature andthe Regulation framed thereunder.

2. Read through the minutes of the meetings of the Managing Committee or Governing Body,noting resolutions affecting accounts to see that these have been duly complied with,specially the decisions as regards the operation of bank accounts and sanctioning ofexpenditure.

3. Check names entered in the Students Fee Register for each month or term, with therespective Class Registers, showing names of students on rolls and test amount of feescharged; and verify that there operates a system of internal check which ensures thatdemands against the students are properly raised.

Incomes for Educational Institutions:


There can be various types of incomes for the educational institution. We need to check from each and every aspect to know that proper income has been credited to the bank accounts of the educational institution or not. Whether the head of the income has been properly posted or not. All the relevant expected incomes of the educational institution has been listed here:

  1. The first and the foremost income of educational institution can be tuition fees which they normally charge from the students. The fees structure need to be learnt first from the officials of the school. Then you need to check the summary sheet of the fees received from the students. Fees receipt from the students needs to be checked whether they are properly charged and whether there are proper receipt credited or not.

Whether the late fees have been properly taken from the students who have paid the fees late from the due date of paying the fees. In case of any concession provided to any student than the grant notice of the same, authorized by the officials of the school needs to be seen.

  1. The other incomes can be rent of canteen, rent of library, etc let out fees from the person to which the place is given on rent for their purpose. The rent of the canteen needs to be given to the officials only and whether they have been properly accounted for or not.
  2. The incomes of the school can also include income from the investments whether they have invested any money from the mutual funds, and bank fixed deposit.

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Expenditure of Educational Institution:

There can be various expenditure for the school which may be made in cash as well as in cheque. The more weighted should be on cash payments as there may be chances for fraud in such transactions.

  1. The most recurring expense in the case of schools can be the expenditure of salary of the staff as the educational institutions are a service based industry and hence the staff personnel need to be paid. To check the relevance of the cheque paid, please check the salary authorization slip. Please check the proper authorization for the employees who are joining the school and those who are leaving the school. Check whether the proper salary register has been maintained which should contain the number of days present and other relevant details.
  2. Check whether the laws are properly followed or not. If Provident fund provisions are applicable then proper regulation has been followed during the year and if not then the reason for not following the same and whether the penalty or interest has been paid or not.
  3. Many other expenses which does not require bill such as cleaning expense, health expense etc need to be verified that whether the same have been properly authorized or not and whether the same have been paid to the same person.

CA Yash Shah

Yash Shah is passionate article writer in and has written more than 100 articles in the field of Finance, Insurance, Stock Market, Company Law, Auditing, Taxation and many others. In case of any queries or suggestions, you can reach the author @, you can also catch him on facebook @ yashshah299

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