# Audit of Trusts
## Books of Accounts to be Maintained
Every trust must maintain:
- Cash book
- Ledger
- Journal
- Copies of bills (machine numbered or otherwise serially numbered)
- Original bills wherever issued, and receipts for payments made
- Any other book required to give a true and fair view of state of affairs.
## Working Papers - What Auditor Must Document
Auditor's working papers must provide evidence that:
- Opinion expressed is based on examination made by him.
- Importance was given to information and explanations obtained.
- Information and explanations were full and complete.
- Auditor did not merely rely on info from assessee but also tested it for accuracy and completeness.
Working papers should include notes on:
- Work done during audit and by whom
- Explanations and info given during audit and by whom
- Decisions taken on various points
- Judicial pronouncements relied upon
- Certificates issued by client / Management Representation Letters
## Audit Procedures - Trusts
Auditor must ascertain:
1. Whether books of account are maintained regularly and in accordance with provisions of the applicable Act and rules.
2. Whether receipts and disbursements are properly recorded and money received as donations is applied as per objects of trust.
3. Whether cash balance and vouchers in custody of the manager on date of audit agree with the accounts.
4. Whether all books and records required by auditor are produced before him.
5. Whether register of movable and immovable properties is maintained.
6. Whether trustees required by auditor to appear before him did so.
7. Whether any property or funds of the trust were applied for any object other than the trust's objects.
8. Amounts of outstanding for more than 1 year and amounts written off, if any.