Auditor should consider the following points while auditing the accounts of cinema :
1. Internal Control :-
Auditor should examine the internal check system of the cinema. He should check the daily receipts of the cinema. He should check the daily receipts of tickets for reserved and unreserved seats. He should verify the sold tickets with their counter foils.
2. Verify The Taxes :-
Auditor should examine that taxes imposed on the tickets are duly deposited in the state bank or not?
3. Cash And Bank Balance :-
Auditor should verify the cash in hand by actual inspection with the cash.
4. Verify Agreements :-
Auditor should examine the purchaser hire and other agreements regarding the films.
5. Advertisement :-
Auditor should vouch the receipts on account of advertisement.
6. Verify The Traveling Expenses :-
Auditor should check the traveling expenses if it is a touring cinema. Such expenses receipts should be certified by the manager.
7. Checking Of Payments :-
Auditor should vouch the wages, salaries, gas, electricity charges.
8. Outstanding Liabilities :-
Auditor should examine the outstanding liabilities like posters and advertising expenses recorded in the books or not?
9. Examine Advances :-
Auditor should vouch the advances paid to the film producers and distributors for the hire contract. He should also see that these are recoverable or not?
10. Allocation :-
Auditor should verify that allocation of expenditure between capital and revenue is made correct. He should vouch the operating expenses.
11. Valuation :-
Auditor should verify the value of unexpired purchased film. He should be very careful in case of valuation.
12. Checking Of Canteen :-
Auditor should verify the closing stock of canteen also if it is conducted by the cinema.