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I am auditing the books of a Cinema Hall. Any spe…

I am auditing the books of a Cinema Hall. Any special tips?

I am auditing the books of a Cinema Hall. Any special tips?

Chiranjibi Mar. 09, 2018

Consider this checklist as your guide to the audit of the books of a Cinema Hall.

First of all, verify that:

  • that entrance to the cinema hall is only through printed tickets;
  • tickets are serially numbered and bound into books;
  • that the number of tickets issued for each show and class are different;
  • that for advance booking a separate series of tickets is issued and
  • inventory of tickets is kept in proper custody.

Audit of Books

Vouching and Verification

  • Verify the income from advertisements and slides showed before the show.
  • Vouch the expenditure incurred on publicity of picture, maintenance of hall, electricity expenses etc.
  • Vouch recoveries of advertisement expenses etc from film distributors.
  • Vouch payment of film hire with reference to agreement with distributor or producer.
  • Verify the basis of other incomes earned like restaurant, car and scooter parking and display windows etc.

Reliability of Information

  • If tickets are issued through computer - audit the system to ensure its reliability and authenticity of data generated by it.
  • System should provide that at the end of each show a proper statement should be prepared and cash collected be tallied.

Internal Systems

  • See if cash collected is deposited in banks partly on the same day and rest on the next day – depending upon the banking facility available.
  • Verify that proper record is kept for free passes issued and the same are issued under proper authority.


  • Cross check the entertainment tax deposited.
  • Confirm that depreciation on machinery and furniture has been charged at appropriate rates which are higher, as compared to those admissible by various acts in the case of other businesses, in respect of similar assets.