GENERAL LEDGER

1.           POSTING OF CASH TRANSACTIONS. The auditor can see posting of cash transactions in general ledger. The items of receipts and payments are posted in it.
2.           VOUCHING JOURNAL. The auditor can vouch journal to ensure that a voucher supports .every entry. When there is no voucher there is any entry.
3.           CHECK POSTING. The auditor can check posting of journals totals to
ledger. He can examine that posting is complete in all respects.            ,
4.           CHECK TOTALS. The auditor should check totals to accounts kept in ledger. The difference in entry and posting can be pointed out for correction in books of accounts.
5.           ACCURACY OF ACCOUNTS. The auditor can maintain accuracy of accounts. All vouchers must be -available to check the transactions.
DIRECT POSTING. The entry may be processed directly from the voucher to the ledger. The vouching of such entry can be traced as other routine ent.-ies. The vouching procedure does not change for such entries.
7.           CHECK ADJUSTMENTS. The auditor should vouch adjustments like outstanding expenses, prepaid expenses, accrued income and ‘unearned income. In this way accuracy of adjustments is tested.
8.           TRIAL BALANCE ACCOUNTS. The auditor can vouch accounts appearing in trial balance. Such accounts are transferred from ledgers. The balances must tally with accounts appearing in ledgers.
9.           TRADING ACCOUNT ITEMS. The auditor can vouch items appearing in trading accounts. Such accounts are extracted from ledgers. Accurate balances can provide true and fair results.
10.       PROFIT AND LOSS ITEMS. The general ledger provides accounts for preparing profit and loss account. The auditor can %/Ouch general ledger balances with profit and loss account to test the’ accuracy.
11.       BALANCE SHEET ITEMS. The items appearing in balance sheet are •taken from ‘ledgers. The auditor can compare balance sheet items with amounts appearing in ledgers to determine true and fair view.
12.       CASTING OF GENERAL LEDGER. The auditor can check the total of general ledger. He can vouch total of it with adjustments made in order to check accuracy of accounts.

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