Audit of club
A club may be registered as a company limited by guarantee or as a society under the Societies Registration Act.
A club may collect from its members:
- Entrance fees
- Charges for the facilities provided and services rendered to the members.
- Income from Investments.
Role of an Auditor in Club Audit
To verify the above, the auditor shall examine
1. The register of members.
2. The counterfoils of receipts issued to the members.
3. Subsidiary Register relating to the services provided for, such as indoor games, outdoor game facilities, restaurant, bar, pools, conference halls, etc.
4. The auditor shall ensure the following
- That the person in charge of the club has not exceeded his powers, especially his financial powers.
- That the entrance fees and subscription received from the members are properly accounted and the subscription received in advance and subscription in arrears are duly accounted.
- That the necessary steps are taken to collect the subscription in arrears.
- That the members’ account is debited with amount chargeable to them in relation to services and facilities provided to him.
- That a sound internal control procedure is followed in accounting the services and facilities provided to the members.
The club may incur expenditure for purchase of furniture and fittings, sports items, crockery, food stuffs, provision etc. The auditor may physically verify the furniture, sports materials, and stock of provisions.
For examining the income from investments and other administrative activities, the auditor may apply the usual methods of verification.