Currently I am doing the audit of an educational institution. They are having a lot of earmarked funds and a lot of corresponding FDs.(The previous year audit was done by another auditor).
1) As per the last balance sheet the total of funds and the corresponding FDs differ ... Should it be the same..?
2)How should I treat the current year interests received.. What are the entries... ?
3)How to make the entries for the payments made out of the fund?