Routine checking means the checking of arithmetical accuracy of books of original entry and ledger with a view to detect clerical errors or frauds of a very simple nature. The errors and frauds are located by the auditor it enable the auditor to give his opinion about the fairness of financial statement. The auditor can fix the responsibility of the accounting staff for negligence of duty.
Routine checking includes:
- Cast, sub cast, carry forward, extension and other calculations in the book of original entry.
- Posting into the ledgers.
- Ledger accounts to see their casts balancing, carrying down of the balances and their transfer into the trial balance.
Objects of routine checking
1. Arithmetical accuracy
In routine checking cast, sub cast, carry forward and other calculations are verified to find the arithmetical accuracy of entries made in the books.
2. Verification of posting
The auditor should verify that posting from books of original entry to ledger have been made correctly and the ledger accounts have been balance correctly.
3. No alteration
In routine checking auditor ensure that figures have not been erased or changed after the routine checking is over. This is done by use of special types of ticks for checking.
Advantages of routine checking
1. Arithmetical accuracy of book
Routine checking is helpful in checking the arithmetical accuracy of the books of original entry which is finally checked in trial balance.
2. Detection of error and frauds
Routine checking is helpful in detecting the frauds and errors of very simple nature in the books of original entry and records.
3. No alteration
It ensure that after the routine checking is over the figures have not been changed, raised or altered as special type of ticks are used for checking.
4. Basis for through checking
Routine checking provides the basis on which auditor made the final and through checking of books of accounts.
5. Verification of posting
Routine checking is helpful in finding out whether all the posting have been made from journal to ledger and other subsidiary book.
Routine checking ensures the reliability of final account to some extent.
Disadvantages of routine checking
1. Lack of proper care
The job of routine checking is given to junior clerks who are likely to attach less importance to it. Hence a proper care should be taken while routine checking with efficiency.
2. Planned fraud
It is serious back draw that planned fraud are not revealed while routine checking. It reveals only clerical errors or frauds of a simple nature.
3. Error of principles
Routine checking is conducted by the most junior audit clerk and they cannot distinguish between capital and revenue income or expenditure therefore in the presence of errors a fair view is not possible.