Routine Checking – Merits and Demerits

# Routine Checking – Merits and Demerits

We have already discussed about purpose and objectives of Routine Checking. In this article we will go through some merits and demerits of Routine Checking.

### Purpose of Routine Checking

1. Making totals and sub-totals of primary books of accounts, carrying them forward to the next page, and calculating the balances and their checking.
2. Checking of the ledger postings derived from the primary books and journal, and to see whether they are properly done or not.
3. To see the totals of debits and-credits of different accounts and their balances.
4. To check whether balances of various accounts are properly taken to the Trial Balance, or not.

## Merits Of Routine Checking

1. #### Mathematical Accuracy

The mathematical mistakes of the books of accounts are known from this type of checking, it confirms that the accounts are mathematically accurate.

2. #### Simplicity

The work of routine checking is very easy. It can be done even by a person of ordinary abilities.

3. #### Basis of Final Checking

It also helps in the checking of Trial Balance and Final Accounts. In fact, it is the basis of checking of Final Accounts, on which basis the auditor prepares his report.

4. #### Knowledge of Errors and Frauds

Through this, the errors, frauds and misappropriation of accounts are known.

5. #### Knowing Errors in Posting

Generally, the chances of mistake are more in ledger, in accounting work. By routine checking it can be known, whether the work of ledger posting is done properly or not.

6. #### Tracing out Change in Figures

Various secret Ticks and Marks are used during the process. If any change is made in figures after the checking, it can be easily traced.

## Demerits Of Routine Checking

1. #### Carelessness in Work

The work of routine checking is not of any specific ability, thus, it is done by junior employees. These junior employees take routine check as a mere formality and finish the work quickly and carelessly, due to which chances of various mistakes remaining undetected are there. In fact, this fault is not of routine check but of the persons doing the work.

2. #### Errors of Principle remain Undetected

Persons doing routine checking are not much qualified, thus they do not have full knowledge of the Principles of Accounting. Thus, the errors of principle of accounting remain undetected.

3. #### Monotonous Work

Since, the work of routine checking goes on in a continuous process, the employees get bored in their work and they don’t take interest in their work.

4. #### Cleverly done Frauds remain Undetected

Small mathematical and other inaccuracies can be known through this technique, but cleverly and intelligently planned big frauds cannot be known.

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