What is a Routine Checking in Auditing? Under what circumstances is it useful to apply?
Routine Checking is the elementary part of auditing. It is checking of arithmetical accuracy of books of account, accounting statements and other related accounts. These books of accounts are Journal, Ledger books, Cash book, Trial Balance and other subsidiary books. Checking of these books by an auditor or his staff is called Routine Checking.
Routine Checking is useful to apply in the following cases:
- To detect errors and frauds of simple nature.
- To ensure the arithmetical accuracy of the books of original entry.
- To ensure the correctness of posting to ledger accounts.
- To ensure the accuracy of casting and balancing in ledger.
- To ensure the correct transfer of balances to the trial balance and the correctness of the trial balance.
- Prevention and alteration of figures after the records have been checked.