During the audit of balance sheet and journals what steps will be taken by the auditor or How balance sheet and journals are audited

TRIAL BALANCE :-
The statement of balance extracted from ledger accounts is called trial balance. Its object is to see the arithmetical accuracy of the transaction and to check the comprehensive balance of all the accounts ledgers.

The auditor should check the following things in the trial balance :

1. Check that both sides of trial balance are equal in the trial balance.

2. Verify that all balance have been accurately recorded in the trial balance.

3. Examine that all the amount has been recorded in proper head.

4. Check that all the adjustment entries have been properly included in the trial balance.

5. Verify that all the balance of ledger account is have been transferred.


JOURNALS :-
Those transactions which could not be recorded in any other book of prime entry are passed through the journals. Journal is basically used for recording, opening adjusting and closing.

Following journal entries could be vouched :

1. Closing entries.

2. Opening entries.

3. Entries relating to the dishonour of bills.

4. Entries relating to the consignments.

5. Adjusting entries.

6. Liabilities taken over from the vendor.

7. The acquisition of different assets.