Concept Of Audit Of Impersonal Ledger
Impersonal accounts refer to real accounts and nominal accounts which are related to trading account, profit and loss account and balance sheet. So, if there are any errors in such accounts, they will affect adversely to the report and financial statements which are to be signed by the auditor. Checking of such accounts is known as audit of impersonal ledger. It does not only assure the correctness and reliability of nominal accounts but also helps to detect the errors which which remain in personal accounts. Such audit is conducted with the help of cash book, journal and subsidiary books.
Following works are to be performed for the audit of impersonal ledger:
1. Cash transactions are to be checked on the basis of cash book or journal.
2. Other impersonal transactions are to be recorded on the basis of sufficient evidences. An auditor has to check whether it is recorded on the basis of evidence or not.
3. Special attention should be given while checking transfer entries because it effects the final accounts.
4. Totals and balances of impersonal ledger should be ratified with the balance shown in trial balance.
5. Opening balance of impersonal ledger should be verified with the audited account of previous year.
6. Auditor should thoroughly check the totals of the various other books of original entry and also the postings of their totals of the impersonal ledger.