Auditing of Educational Institutions
INTRODUCTION; 2 DEFINITIONS 3 Auditing 3 Financial statements: 4 Educational institutions 4 FINANCIAL AUDITING: 5 Objectives of auditing: 5 Primary objects 6 Subsidiary objects: 6 General Principles Governing an Audit of Financial Statements 6 Qualities of an auditor: 7 Types of audit: 7 Statutory audits: 7 Private audits 7 Internal audits: 7 Required procedures: 8 Auditors report: 9 AUDITING OF EDUCATIONAL INSTITUTIONS 9 INTRODUCTION: 9 Background of auditing educational institutions: 9 Reasons and purposes of auditing school accounts: 10 Expectations of the schools’ accounts auditor: 12 Types of auditing 13 Internal auditing 14 External auditing: 15 Records and books of accounts for external auditing. 17 Audit report 21 CONCLUSION 22 Reference 23
INTRODUCTION
Since schools are public agencies, their raising and spending of money must be reviewed on a yearly and needs basis. This paper reviews auditing in educational institutions and specifically Kenyan Educational institutions.
The paper starts by giving detailed definitions of key words which are essential in the discussion of auditing. However, a background to financial auditing is first discussed to give an insight on the same. Areas of general auditing covered include: need of auditing, objectives and general principles of auditing, qualities of an auditor, required procedures and the auditor’s report. Having discussed auditing in general, the paper goes further to discuss auditing in educational institutions and starts by giving a background to the same, reasons and purposes of auditing school accounts, expectations of the school accounts auditor, types of school auditing, records and books of accounts used for auditing and finally the audit report.
DEFINITIONS
Auditing
The Auditing Practices Board (APB), (2002), defines audit of financial statements as an exercise whose objective is to enable auditors to express an opinion whether the financial
INTRODUCTION
Since schools are public agencies, their raising and spending of money must be reviewed on a yearly and needs basis. This paper reviews auditing in educational institutions and specifically Kenyan Educational institutions.
The paper starts by giving detailed definitions of key words which are essential in the discussion of auditing. However, a background to financial auditing is first discussed to give an insight on the same. Areas of general auditing covered include: need of auditing, objectives and general principles of auditing, qualities of an auditor, required procedures and the auditor’s report. Having discussed auditing in general, the paper goes further to discuss auditing in educational institutions and starts by giving a background to the same, reasons and purposes of auditing school accounts, expectations of the school accounts auditor, types of school auditing, records and books of accounts used for auditing and finally the audit report.
DEFINITIONS
Auditing
The Auditing Practices Board (APB), (2002), defines audit of financial statements as an exercise whose objective is to enable auditors to express an opinion whether the financial
References: Barasa, J.M. Nyongesa, (2007), Educational Organization and Management. The Jomo Kenyatta Foundation Enterprise Road, Industrial Area, Nairobi- Kenya Everret, Robert E. Lows, Raymond and Johnson, Donald R; (1995) Financial Management Accounting for School Administration Gupta, R (2005), How to conduct audit of educational institutions. Issue of chartered accountant Practice Journal Hayes S.Rick et al(2002),Principles of auditing .An international perspective . Millichamp A.H.(2006) Auditing . 8th Edition. Thomson Learning, Holborn House, pg 50-51 Bedford Rowi London WCIR4LR. Okumbe, J.A (1998) Educational management. Theory and Practice. Nairobi University Press. UNESCO Report (2002), Auditing of School Account Books. Resource Materials for School Heads in Africa Wango G. (2007) School Administration and Management. Quality Assurance and Standards in Schools. JKF. Nairobi, Kenya.