For audit of such institutions following matters should be kept in mind during audit procedure
01. Constitution of Charitable Institution under which it has been set up and their scope.
02. Examine the laws which is properly followed or not by the institution.
03. Verify the Accounting of collections under Internal Check System.
04. Proper utilization of income and their supporting where they used.
05. Subscriptions and donations are the important source of Income which must be accounted properly.
06. Examine the frequency or movement of life membership subscription during the year.
07. Verification of official receipts. Control check over unused receipt books.
08. Verify the sequence of all receipt books.
09. Give proper attention on counterfoils of Cash book.
10. Examine the source of subscriptions & donation as well as their list of names.
11. Check the total subscriptions and donations with the books & tally with figures.
12. Examine the process of Cash management and their accounting with books.
13. Examine the available resource and verify them in figures with amounts received
14. Grants play a key role in the income of any charitable Institutions because as per Income Tax Act there is a provision to use the grant for their purpose. So, it must be check carefully.
15. Obtain the certificate of grant received.
16. Vouch the grant amount with receipts and Minute Books.
17. Vouch the Bank book and Investment Certificate on which amount received as Interest and Dividend.
18. Check the computation of Interest received. Reconcile the Bank Book with appropriate details maintained by Institutions.
19. If the Institution is registered under Income Tax Act, then check their 26AS and reconcile the TDS deduction with books.
20. Examine the rent agreement and their applicability along TDS provision if available.
21. Vouching of receipts and expenditure in respect to any special events organised.
22. Verify the fixed assets schedule and their physical appearance.
23. Examine the Income Tax refund and calculation of claim repayment.
24. Vouch the payment of grants and their utilization as per laws under which the Institute has been set up.
25. Physical verification of documents of securities.
26. Verify the Cash & Bank Balance.
27. Ascertain the documents regarding any funds contributed for a special purpose.
28. Ascertain & verify the previous Audit Report and all applicable Forms submitted or not.