NCJ Number
80569
Journal
Journal of Accountancy Volume: 44 Issue: 2 Dated: (August 1927) Pages: 81-88
Date Published
1927
Length
8 pages
Annotation
For the benefit of the professional accountant first called in to audit the records of a small municipality, audit procedure and books of account are described.
Abstract
The accountant who initially audits the records of a small municipality is in nearly every case confronted with a situation involving inadequacy of records, comingling of funds, and a multiplicity of minor inaccuracies. Given this situation, one of the first steps should be consultation with the attorney for the municipality. This attorney can provide background information on the municipality and its officials that should help in interpreting what is behind the figures examined and compiled. The article describes how to audit receipts and expenditures without benefit of adequate and precise records. The accountant also has the tasks of determining what books of account should be installed to prepare a workable chart of accounts. The preparation of a report for presentation to the board of mayor and alderman is also required. The books of account advised to be sufficient in order to develop a workable chart of accounts are a collection register, warrant register, light and water register, general journal, and general ledger. Categories are listed for assets, liabilities, revenues, and expenses. The preparation of the report is described, including a list of suggested exhibits and schedules to accompany the report.