Whether a business is big or small, the record of its daily transactions is kept in the books of accounts. The daily checking of these books of accounts under audit is called Routine Checking. Usually this work is done by the junior staff of the auditor.
Purpose of Routine Checking
- Making totals and sub-totals of primary books of accounts, carrying them forward to the next page, and calculating the balances and their checking.
- Checking of the ledger postings derived from the primary books and journal, and to see whether they are properly done or not.
- To see the totals of debits and-credits of different accounts and their balances.
- To check whether balances of various accounts are properly taken to the Trial Balance, or not.
Objectives Of Routine Checking
The routine serves the following objectives
- To know the mathematical accuracy of the accounts, entered in the primary books of accounts.
- To know the regularity of accounting in primary books of accounts.
- By making use of distinct Ticks and Marks to know that no changes are made in figures after the check.
Ticks And Marks Used In Routine Checking
While doing routine checking, some signs of different colors are used. These are called Ticks or Check Marks. The main points related to this are
The following precautions must be taken while using these marks
- Mark should be small and clear.
- Marks should not be of the same color in which accounts are written.
- Different colors of marks must be used for different activities.
- Marks must be changed each year.
- The meanings of marks must be kept secret.
Place of Ticks and Marks
The place of making the mark must be decided beforehand because along with the colors, types of marks, the place of its use are also very important. Usually for verifying the postings in accounts, mark is made on the left side of the amount. On checking the voucher with the amount, mark is made on the right side. On verifying the total, mark is made below the total etc.
Importance of Ticks and Marks
The Ticks and Marks have great importance in verification. Prof. Emerson while expressing the importance of Ticks & Marks has written that during audit, Ticks and Marks must be kept in mind, in the same way as while walking, we keep track of the road in mind, while talking we keep words in mind and while shopping pocket kept in mind. In all these situations, a little carelessness creates various problems.
Merits Of Routine Checking
The mathematical mistakes of the books of accounts are known from this type of checking, routine checking confirms this that the accounts are mathematically accurate.
The work of routine checking is very easy. It can be done even by a person of ordinary abilities.
Basis of Final Checking
Routine checking 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.
Knowledge of Errors and Frauds
Through routine checking, the errors, frauds and misappropriation of accounts are known.
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.
Tracing out Change in Figures
Various secret Ticks and Marks are used during routine checking. If any change is made in figures after the checking, it can be easily traced.
Demerits Of Routine Checking
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.
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.
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.
Cleverly done Frauds remain Undetected
Small mathematical and other inaccuracies can be known through routine checking, but cleverly and intelligently planned big frauds cannot be known.