Audit of Club

A club is usually constituted as a company limited by guarantee. Therefore, various provisions of the Companies Act, 1956 relating to the audit of accounts of companies are also applicable to its audit. The special steps involved in such an audit are stated below :

  1. Vouch the receipt on account of entrance fees with members’ applications, counterfoils issued to them, as well as on a reference to minutes, of the Managing Committee.
  2. Vouch member’s subscriptions with the counterfoils of receipt issued to them, trace receipts for a selected period to the Register of Members; also reconcile the amount of total subscriptions due with the amount collected and that outstanding.
  3. Ensure that arrears of subscriptions for the previous year have been correctly brought over and arrears for the year under audit and subscriptions received in advance have been correctly adjusted.
  4. Check totals of various columns of the Register of members and tally them across.
  5. See the Register of Members to ascertain the Member’s dues which are in arrear and enquire whether necessary steps have been taken for their recovery; the amount considered irrecoverable should be mentioned in the Audit Report.
  6. Verify the internal check as regards members being charged with the price of foodstuffs and drinks provided to them and their guests, as well as, with the fees chargeable for the special services rendered, such as billiards, tennis, etc.
  7.  Trace debits for a selected period from subsidiary registers maintained in respect of supplies and services, to members to confirm that the account of every member has been debited with amounts recoverable from him.
  8. Vouch purchase of sports items, furniture, crockery, etc. and trace their entries into the respective stock registers.
  9. Vouch purchases of foodstuffs, cigars, wines, etc., and test their sale price so as to confirm that the normal rates of gross profit have been earned on their sales. The stock of unsold provisions and stores, at the end of year, should be verified physically and its valuation checked.
  10.  Check the stock of furniture, sports material and other assets physically with the respective stock registers or inventories prepared at the end of the year.
  11. Inspect the share scrips and bonds in respect of investments, check their current values for disclosure in final accounts; also ascertain that the arrangements for their safe custody are satisfactory.
  12. Examine the financial powers of the secretary and, if these have been exceeded, report specific care for confirmation by the Managing Committee.
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