Audit of Trusts

Audit of Trusts

Trusts are formed under the Indian Trusts Act for charitable and religious purposes. Trustee is a person who manages trust property and executes the business of the trust. His duty is to work for the benefit of beneficiary and distribute income of the trust to the beneficiaries. The operations of trusts are governed by a Trust Deed. Very commonly it is found that beneficiaries are being defrauded by the trustee. Hence audit of trust accounts helps to protect the beneficiaries against unscrupulous trustees. The provisions of the Public Trust Act and Trust Deed provide that accounts of trusts should be audited by a qualified auditor.

It is the duty of the auditor to verify the transactions and books of accounts of trusts and certify the truthness and fairness of the working of the trusts. When trusts are audited by a qualified auditor, it will help both the trustees as well as the beneficiaries. Trustees will be benefited because there will be no unnecessary criticisms against them. The beneficiaries will also be benefited because they will be assured that the accounts have been properly maintained and that there has been no misappropriation of trust money or fraud.