INSTRUC LIBRARY * OF THE UNIVERSITY OF CALIFORNIA. Class RECORD. 1. The list of books on page 2 must be written up at the first audit. 2. All papers to be placed in their proper place when not being used. 3. The Clerk who actually does each item of work (or, where two are engaged then the Senior) must place his initials opposite same in the column headed with the date to which the audit extends. 4. Where in a monthly or quarterly audit any item of work is only partially done, the word "partly" should be added after the Clerk's initials. 5. Work not applicable to any particular audit to be struck out in the printed particulars on pages 8 to 16, and particulars of any | special books to be added on pages 16 and 18. 6. The following distinguishing marks are to be used in checking, &c. (Marks usually adopted to be filled in below) : — Postings Deletions Castings Contras No Amount Alterations Bank Vouchers 7. Queries that arise in the course of ski .audit are, in the first instance, to be recorded on a separate sheet, and only those points which on investigation are found to be material, or likely to save future inquiries, are to be entered in the Audit Record as Memoranda. 8. This Book when taken out on audit must be kept as a private document and, on return to Office, placed with audit papers. The Professional Accountants n Audit Becord. [COPYBIGHT.] r LONDON : EFFINGHAM WILSON, 54, Thbeadneedle Stkeet, E.C. Price 2s. 6d. Net. «f$ or TMC Particulars of Contract with' Client. V UNIVERSITY Of 1 List of Books in use. Summary of Partnership Articles or Vendor's Agreement. (So far as they affect the Accounts or Documents of Title.) Points in Company's Articles as to Accounts. Work to be done in connection with Certification for Statutory Meeting. Examined Memorandum and Articles Examined Vendor's and other Agreements. State — (a.) Amount payable in Shares, and when due (b.) (c.) >> j> »* ») Debentures, and when due Cash, and when due (As per Summary on page 3.) Checked Application Letters with Application Sheets . . . Checked casts of Shares allotted Examined Minute Book re Allotments Are Allotment Sheets signed by Chairman, or Directors ? Checked Pass Book Receipts on Capital Account with Allotment Sheets or Share Ledger, and checked totals with Cash Book... Checked Pass Book Payments with Cash Book in detail Examined Cash Book as to receipts other than on Capital Account ... Examined Cash Payments — (a.) As to payments on Capital Account (*•) » for Preliminary Expenses (c.) ,, any doubtful items — give particulars Checked casts of Cash Book How much has been paid to Vendor ? Has any Commission been paid for placing Shares, and if so, is it authorised by Articles ? ... Prepared Summarised Account of Preliminary Expenses Are Preliminary I all paid? " ... Give particulars of any further estimate on this Account Vouched Cash Payments Titles to Company's Property examined (if date for completion passed) ... Cash Balance certified by Bank Have any Debentures been issued? If so, givo particulars of — (a.) Amount of issue ... (b.) subscribed (c.) „ paid to date Figures taken out as at ? Signature of Clerk responsible for work . . N.B. — Form of Report, with Auditor's Certificate appended, can be obtained from any Law Stationer. AUDIT. CASH BOOK. Sold Ledger postings checked ... Bought Ledger postings checked Private Ledger postings checked Impersonal Ledger postings checked ... Additions checked Checked in detail with Pass Book and reconciled Eeceipts vouched (if practicable) Payments vouched Authority for cheques drawn examined CASH SALES BOOK. Checked with duplicate invoices Analysis inspected and agreed with total Postings checked Additions checked PETTY CASH BOOK. Receipts checked with Cash Book ... Analysis inspected and agreed with total Additions checked Postings of totals and Ledger items checked Cash in hand counted ... Payments vouched WAGES BOOK. Receipts checked with Cash Book Calculations and time and rate3 of payment tested Payments vouched Analysis inspected and agreed with total Additions checked BOUGHT JOURNAL. Checked with invoices ... Analysis inspected and agreed with total Postings checked Additions checked Examined treatment of Trade Discounts RETURNS OUTWARDS BOOK. Analysis inspected and agreed with total Postings checked Additions checked Yearly, Half-Yearly, Work done as initialled Quarterly, or Monthly? below up to : — * *See Instructions facing title page. 10 AUDIT. SALES JOURNAL. Analysis inspected and agreed with total Postings checked Additions checked Examined treatment of Trade Discounts RETURNS INWARDS BOOK. Analysis inspected and agreed with total Postings checked Additions checked BILLS RECEIVABLE BOOK. Sold Ledger postings checked . . . Private Ledger postings checked Bills in hand verified ... Additions checked Treatment of Discounts examined BILLS PAYABLE BOOK. Bought Ledger postings checked Private Ledger postings checked Additions checked Authority for acceptance seen... JOURNAL. Postings checked Vouched ... Additions checked (if deemed necessary) TRANSFER JOURNAL. Sold Ledger postings checked Bought Ledger postings checked Impersonal Ledger postings checked . . . Private Ledger postings checked Additions checked (if deemed necessary) Vouchers examined Work done as initialled 11 below up to : — 12 AUDIT. BOUGHT LEDGER. Postings checked Additions checked Schedule of Creditors agreed with Creditors' Statements ... Schedule of Creditors agreed with Ledger Accounts Bought Ledger Account checked Discounts on Outstanding Balances reserved SOLD LEDGER. Postings checked Additions checked Schedule of Debtors agreed with Ledger Accounts — Noting debts of long standing Sold Ledger Account checked... Discounts on utstanding Balances reserved CLIENT'S LEDGER. Postings checked Additions checked Balances agreed with Schedule Transfers between Clients examined if no Transfer Journal kept ... DISBURSEMENTS LEDGER. Postings checked Additions checked Balances agreed with Schedule Proper amounts written off against Costs IMPERSONAL LEDGER. Postings checked Additions checked List of Balances agreed with Ledger Accounts Impersonal Ledger Account checked... ... ■•• Outstandings reserved for, and Payments in Advance apportioned... PRIVATE LEDGER. Postings checked ••• Additions checked ••• Examined Summary of Partnership Articles (see page 3.) Outstanding liabilities provided for, and Payments in Advance apportioned ... Verify outstanding assets ••• Provide for bad and doubtful debts Provide for depreciation and interest . Provide Sinking Funds (if required) Work done as initialled below up to 13 14 AUDIT. STOCK BOOK. Calculations checked by Client's Staff Additions checked Scrutinised generally ... Basis of stock-taking ascertained Old Stock noted Prices, dates of delivery, &c, tested by Examination of Invoices and Delivery Notes Work in Progress verified Stock Book Certified ( see Form, page 22) DIVIDENDS. Minutes Examined ... Additions and Postings checked Calculations and Income-tax deductions tested Payments vouched o Agreed with Capital Accounts >* 9 a o O M o o MORTGAGE AND DEBENTURE INTEREST. Additions and Postings checked Calculations and Income-tax deductions tested Payments vouched Agreed with Register and Accounts in Private Ledger Accrued Interest reserved SHARE BOOKS. Transfers examined and Postings checked Authority examined for Calls or new Shares issued . . . Forfeited Shares (if any) properly treated Share Ledger Balances checked with Schedule and agreed with Capital Accounts REGISTER OF MORTGAGES AND DEBENTURES. Transfers examined and Postings checked Agreed with Private Ledger Accounts Cancelled Debentures inspected . TRIAL BALANCE Sectional Balance agreed Final Balance agreed ... o i-s a & I a O o a .a s SO ag Work done as initialled 15 below up to :— 16 AUDIT. BALANCE SHEET AND TRADING AND PROFIT AND LOSS ACCOUNT. Drafted and figures for corresponding period stated in margin Compared with previous year SCHEDULE OF PERCENTAGES. Figures prepared in draft (see page 28) MEMORANDA FOR FUTURE AUDITS [see page 23.) All material matters recorded as per Instructions facing title page REPORT TO PRINCIPAL as to Scrutiny of Cash Book, Bought Journal, and Sales Journal, before and after balancing date Treatment of money received ... Passing of Invoices, Credit-notes and Statements Control of Petty Cash and Maximum Balance Accuracy of book-keeping Erasures and alterations Internal check Scrutiny of Minute Book Compliance with legal requirements or Partnership Articles Other matters Work done as initialled SPECIAL BOOKS. (To be reported upon in detail as above.) 17 below up to 18 AUDIT. SPECIAL BOOKS. (2b be reported upon in detail as above.) Work done as initialled 19 below up to :- 20 AUDIT. MEMORANDA FOR PRINCIPAL. Audit Record examined. . . Stock properly certified Schedule of Debtors examined and provision for bad debts considered Amount of book debts in relation to turnover considered Clerk's Queries settled Profit and Loss Account scrutinized Balance Sheet scrutinized and Assets verified Provisions of Partnership Deed (or Company's Articles) considered (See Extracts, pages 3 and 5.) Schedule of percentages examined and brought up to date (see page 28) •• Accounts settled and Audit completed Certificate drawn (see Form, page 22) Eeport drawn (see Form, page 22) Yearly, Half-Yearly, Work done as initialled Quarterly, or Monthly? 21 below up to 22 PRO FORMA AUDIT CERTIFICATE. (To be appended to Balance Sheet of a Joint Stock Company.) AUDITOES CERTIFICATE AND REPORT. We certify that all our requirements as Auditors have been complied with, and we report to the Shareholders that we have examined the above Balance Sheet, together with the books and vouchers, and that in our opinion same is properly drawn up so as to exhibit a true and correct view of the state of the Company's affairs on 190... as shown by the books of the Company. Chartered or Incorporated Accountants, Auditors. (Address) 190... PRO FORMA REPORT TO SHAREHOLDERS. (To be read at General Meeting.) To the Sliareholders of The Company, Limited. Gentlemen, We beg to report that we have examined the Balance Sheet of the Company, Limited, certified by us on the together with the books and vouchers, and that in our opinion such Balance Sheet is properly drawn up so as to exhibit a true and correct view of the state of the Company's affairs on as shown by the books of the Company. Chartered or Incorporated Accountants, Auditors. (Address) 190... PRO FORMA CERTIFICATE AS TO STOCK. (To be signed by responsible Officer or Officers.) I certify that the foregoing is a correct list of the Slock as ai 190... amounting in value to £ , that same has been taken at cost price or market value if lower, and that proper allowance has been made for old, damaged, and depreciated goods. 190... Note. — Where one -person is responsible for ijiaintities, and anotlier for prices, both slwuld sign and qualify their Signatures, thus : — Responsible for Quantities, A. B. Responsible for Prices and Allowances, G. D. 23 Memoranda for future Audits. 24 Memoranda for future Audits. 25 Memoranda for future Audits. 26 Memoranda for future Audits. 27 Memoranda for future Audits. 28 SCHEDULE OF PERCENTAGES. (Shillings and Pence to be omitted and Percentages to be written in Bed Ink.) I ! I Percentage Percentage Total of of of Profit & Loss Net Profit Net Profit Charges on on (Eliminating Cost Price. Sales. Interest, &c.) Year or Half Year. Cost of Sales. Sales. Gross Profit. Percentage Percentage of of Gross Profit Gross Profit on Cost Price. on Sales. Net Profit. N.B. — If deemed advisable this Schedule may be detached at the perforation, and kept in the Office. 2'J Memoranda. 30 Memoranda for future Audits. *IVER8ITY YH tnoVBBB,, op ca UTOrnia UBBABX Due two weeks after date. 30m-7,'12 THE PROFESSIONAL ACCOUNTANT'S AUDIT RECORD. Audit From To 190 190