Audit Checklist of Educational Institution Schools College

Audit Checklist of Educational Institution Schools College

Audit of Educational Institution

Audit of Educational Institution or College or School always required some special procedures as these organisations governed by their specific law. Such audits of Schools or Colleges treats as special audit as audit is being performed in all together different way. Here we have tried to explain the procedure on How to do Audit of Educational Institution or School or College.

Here is checklist to carry out  Audit of Educational Institution:


Bye-laws of Educational Institution

Read thoroughly the “Trust Deed or MOA” of Educational Institution to know what all activities are allowed and what not


Governing Law of Educational Institution

Understand by which law such schools or colleges are governed like Society Act, Trust Act, Companies Act or any other act or law


Audited Financial Institution

Analyse last year Audited Report along with financial Statement to understand “comment or observation” raised by previous auditor


Standard Operating Procedure

Read SOP’s of Schools or college to understand the working culture


Board Minutes

Read board minutes to understand what all decisions are taken by management and justification for same


Audit of Tuition Fee of School or college

This is one of most important aspect of audit of educational audit. Such fee must be reconciled with no of students available from attendance register.  Fees which are due but could not receive must duly account for as accrued income.


Audit of Admission Fee of School or college

This is the onetime fee that educational institution received from students. Such fee must be reconciled with Admission/ registration and Enrollment no. as such enrollment no is unique.  Total admission count can be taken from such register and may be reconcile. Such fee should be received upfront and any due should be duly notified to management.


Audit of Examination fee

Such fee must be reconciled with no results announced/mark sheet printed. A sample test checking to be carried out


Audit of Donation received

This is one of the most important aspects of audit of Educational Institution. Auditor must ensure that donation in cash will not be allowed if it exceeds from 2 lakh from single student. Further if it is received in bank account then withdrawal of same from bank account to be check thoroughly and end use to be monitored.


Audit of Teacher Salary

Independent confirmation can be obtained from certain teachers for their monthly salary and can be reconcile with salary cost.  Cash salary more than 10000 per teacher per month should not be allowed.


Audit of Sports Equipment and similar aspects

A physical verification can be carried out for high value sports equipment. Any disposal of such equipment should be dully accounted for along with reason of disposal.


Audit of Building Fund or other Similar Funds

Any utilisation of such fund must be duly approved by board. Purchase of any material related to construction must be reconciled with E-way bill (if applicable) and gate pass of school gate. Some picture of prior to construction can be ask from management and physical inspection can be carried out with current construction level.  A per square feet cost can be estimated and check with standard.


Checking of PF and ESI related Compliances

Auditor has to ensure that all such dues are duly reconciled with no of employees deployed in organisation.  A Special emphasis can be given on outsourced staff.


Checking of Grant Received from Government

These transactions are high value transactions and require special attention. Auditor has to ensure that educational institution duly complied with conditions which are link with government subsidy.

It also has to be check whether such government grant are revenue in nature or has to be capitalised.

Apart from above mentioned aspects auditors also have to ensure that applicable accounting standards are duly followed. There would not be any breach from internal control lays down by management of educational institution. Auditor should also keep in mind standard on Auditing issued by ICAI.

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