Page 247 - DCOM509_ADVANCED_AUDITING

Advanced Auditing

Notes (c) All incomes due to the trust have been properly accounted for on the
basis of the system of accounting followed by the trust;
(d) All expenses and outgoings appertaining to the trust have been recorded
on the basis of the system of accounting followed by the trust; and

(e) Amounts shown as applied towards the object of the trust are covered
by the objects of the trust as specified in the document governing the
trust.
(iii) Obtain a trial balance on the closing date certified by the trustees.
(iv) Obtain the Balance Sheet and Profit & Loss Account of the trust authenticated
by the trustees and check the same with the trial balance with which they
should agree.
(c) Accounting Principles: The auditor should follow, i.e., generally accepted accounting
principles and ascertain the accuracy, truth and fairness of the Balance Sheet and
Profit & Loss Account.

In particular, the auditor will scrutinize that:
(i) all assets of the trust are verified;
(ii) The assets of the trust have been properly valued and depreciation duly
provided for;
(iii) All liabilities of the trust are properly accounted for;
(iv) The investments of the trust are properly classified and indicated and market
values shown; and
(v) Outstandings due to the trust are properly accounted for and their
recoverability examined and provision made for irrecoverables.
(d) Annexure to the Audit Report:
(i) Obtain from the trustees, a certified list of persons covered by Section 13(3).
(ii) Obtain from the trustees, a statement enlisting the various items specified in
the Annexure to Form No. 10B and giving the information against each item
together with explanatory or supporting schedules.
(iii) Verify the information supplied by the trustees in the statements specified
above in the light of available material. Where a list of persons specified in
Section 13(3) is not available, indicate against Sections II and III of the items
specified in the annexure the appropriate qualifying remarks.
The audit report is required to be furnished to the relevant year. Failure to furnish the report
will disentitle the trust or institution to the benefit of Sections 11 and 12. The Auditor can accept
as correct the list of persons covered by Section 13(3) as given by the managing trustees.

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