During the audit of Saraswati University for the year ended 31 March 2025, the auditor examined various income streams and administrative expenses…

During the audit of Saraswati University for the year ended 31 March 2025, the auditor examined various income streams and administrative expenses of the university. While reviewing student fee records for the July-September term, the auditor compared the Class Registers with the Students' Fee Register. The Class Registers showed 620 students on roll, whereas the Students' Fee Register reflected fee demands raised only for 590 students. Further examination revealed that counterfoils of receipts issued during August totalled - 12,40,000, while the Cash Book recorded fee collections of 11,90,000 for the same period. The university also operates a hostel with 200 rooms. During the year, the average occupancy rate was 80%, and the hostel fee charged per student was - 6,000 per month. However, the hostel income recorded in the books amounted to 1.80 crore. During the audit of Saraswati University, the auditor applied analytical procedures to evaluate the reasonableness of certain income statement balances. Instead of relying on prior period trends, the auditor used non-financial data relating to the current audit period. To evaluate whether the recorded hostel income appeared reasonable, the auditor used the occupancy rate and hostel fee structure to estimate the expected hostel income. While examining certain administrative expenses, the auditor analysed monthly trends for electricity and fuel expenses. However, for travel expenses and repairs, supporting documents were examined in detail. During this examination, it was noticed that - 75,000 spent on purchase of an air conditioner for the administrative office had been recorded under "Repairs and Maintenance" and some travel claims were not approved according to the delegation of authority matrix.