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 the provisions affecting accounts. In the case of a university, refer to the Act of Legislature and the Regulation framed thereunder.
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:
- 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.
- 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.
- 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.
- Audit Program – A Detailed Audit Program with Sample Draft
- Audit Program for In depth Scrutiny of Ledgers
- Audit Program for Vouching and verification of Transaction
- Fraud reporting under Companies Act
- Auditor’s Report on Consolidated Financial Statements
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.
- 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.
- 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.
- 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.