2. INTRODUCTION
There are three principles on which the whole art of auditing is
founded
The principles of auditing must remain unchanged whatever
technique is adopted to give them effect
These principles are
1. Routine checking
2. Vouching of accounting records
3. Verification of assets and liabilities
3. ROUTINE CHECKING
It is checking of books and records
It is to verify the arthimatical accuracy of the entries
It is done to ascertain posting of original entry from
books to ledger.
It is to ensure alteration not made.
4. Routine checking of various books
1. cash book
2. Sales and purchases day books
3. Returns and allowance books
4. Petty cash book
5. Journal book
6. Bills books
7. General ledgers.
5. VOUCHING OF ACCOUNTING RECORDS
VERIFICATION OG AUTHORITY and authencity of
transactions as recorded in the books of accounts.
Checking the books with reference to available
documentary evidences(e.g vouchers, receipts and
invoices)
Check that vouchers are filled serially
List of missing vouchers
Vouching of cash books which include.
1. Bank pass book, 2. sales books, 3. Bills Payables
6. VERIFICATION OF ASSETS AND LIABILITIES
TO check assets and liabilities appearing on balance
sheet
Ensure no liabilities are omitted from accounts
Verification of cash and cash transactions
All data recorded in a manner given in companies
ordinance 1984
Steps to check cash include, cash in hand, cash in
bank and cash transactions
