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Tuesday, 25 October 2011

Describe the special points requiring auditors attention while checking the accounts of news paper

While auditing the news paper account auditor should pay special attention to the following points :

1. Internal Check :-
Auditor should inspect the control system thoroughly. He should examine the receipts, payments and circulation of newspaper.

2. Unsold Newspapers System :-
Auditor should verify the system of unsold newspapers returned by the agents. He should also see that these are properly recorded or not?

3. Cash and Bank Balance :-
Auditor should verify the cash in hand by counting. He should also compare cash book with the bank statement.

4. Payment To The Employees :-
Auditor should check that wages and salaries are properly certified. He should also check the wages sheet.

5. Income Through Advertisement :-
Auditor should examine that income earned through advertisement is properly recorded in books.

6. Depreciation :-
Auditor should see that adequate depreciation is made for the fixed assets. He should also examine the basis on which depreciation is calculated.

7. Libel Action :-
Auditor should examine that necessary provisions are made in case of liable action pending against the newspaper.

8. Payments Verification :-
Auditor should carefully verify the payments made for the purchase of fixed assets payments made to the contributors should also be verified.

9. Investment Examination :-
Auditor should examine the investment made by the company. He should also verify the valuation of investment.

10. Verify The Outstanding Expenses :-
Auditor should verify all those expenses which are outstanding. He should see that these are properly recorded or not?

11. Verification Of Sold Items :-
Auditor should verify that if any old material and machine sold by the company was duly verified by the authorized person.

12. Prize Competition Provision :-
Auditor should check that if any prize competition is offered by the company, for this purpose proper provision is made in the books of account.

13. Proper Attention :-
Auditor should verify that proper allocation between capital and revenue expenditure has been made. No any revenue item of capital can be included in revenue.

14. Issuance Of Paper :-
Auditor should check the system of paper issuing. He should know that how printing paper is issued to newspaper news agents and subscribers.

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