Owing to the number of schedules, trial balances, calculations of earned profits, verification of subdivision properties, etc., the working sheets of an audit accumulate very quickly if the concern is a large one, and it is important that some means of quick reference be provided. The following method of audit is therefore suggested:
The ledger balances are entered on analysis paper bound together in book form, and are numbered consecutively as in the typical trial balance. All working sheets, whether plain or ruled, should be of uniform size, say the regular journal paper, and all adding machine work should be done on such sheets, running several columns to the page, rather than on the usual narrow machine paper which may result in yards of unmanageable ribbon.
Each working sheet is numbered with the account number, and all sheets relating to that account are numbered consecutively, the account number appearing to the left of the sheet number. For example, the sheets relating to Kingslake contracts, the account number of which is 48, would be numbered in proper order, 48-1, 48-2, etc. On completion of the audit, all these sheets are arranged in numerical order, bound together, and filed for reference.