Post Exchange Methods / A Manual for Exchange Stewards, Exchange Officers, Members of Exchange Councils, Commanding Officers, Being an Exposition of a Simple and Efficient System of Accounting Which Is Applicable to Large and to Small Exchanges Alike.

by Paul D. Bunker

AUDITING.

It is not too much to say that the monthly audit of the Exchange books is usually done poorly and inefficiently. This is due to several causes. In the first place, very few officers have ever had experience fitting them for such a task, and still fewer have any liking for the operation. The average audit consists of counting the cash and seeing if the vouchers to the cash account are correct, but a proper audit is something different. The Council should expect, as a result of the audit, a clear statement of the status of the Exchange together with recommendations for improvement and reports of any irregularities, etc. An auditing officer who spends his time finding out whether or not the books contain any mistakes in addition is not performing his proper functions as auditor.

Reduced to its simplest terms the duties of an auditor may be expressed as finding the correct answers to the following:—

(a) Were all assets on hand as shown?

(b) Were there any assets not shown?

(c) Were all the liabilities real ones?

(d) Were all liabilities shown?

(e) Were all liabilities properly incurred?

(f) Were all earnings accounted for?