a) While auditing the Income and Expenditure Account of a charitable institution running a hospital, following special points may be examined:
(i) Verify the register of patients with duplicate copy of bills and patient‟s admission record to see that bills have been properly and correctly prepared for all the services, tests and treatments.
(ii) Check cash collections from patients tracing the receipt issued into cash book.
(iii) Check receipt of interest, rent, dividend etc., with receipt counterfoil into cash book and bank book and ensure that all such income has been duly accounted for.
(iv) Check collection of subscription, donations from the receipt issued, correspondence etc., into cash book.
(v) Verify that all grants from government and other bodies have been duly accounted for and have been applied in the manner as specified.
(vi) Verify all recurring nature of revenue expenditure, with necessary evidence like bill, authority, period etc.
(vii) Examine the internal check as regards the receipt and issue of stores, medicines, linen etc., to ensure that these have been properly recorded and issued/consumed only on proper authorization.
(viii) See that depreciation has been written off in respect of all the assets at appropriate rate and method as in the earlier year.
(ix) Verify the receipts from supply of food and canteen receipts and compare the same with previous year as regards number of patients.
(x) Ensure that all outstanding liabilities have been adequately provided for and similarly all accrued incomes and receipts have been duly accounted for.
(xi) Obtain inventory of stock and stores as at the end of the year and physically check a percentage of items.