Routine checking means the three checking. Checking of cast, sub casts, carry forward, extensions, and other calculations in the books of original. Checking of postings into the ledgers and ledger accounts in respect of their casts, balancing, the carry down of balance and the transfer of the balances on the trail balance. All these checking are done by the auditor by means of different kinds of ticks for different types of business transaction. The objects of routine checking are to verify the arithmetical accuracy of the transactions, find out that positing from the books of original entry have been made to the correct accounts in the ledgers and that ledgers accounts have been correctly balanced and ensure by means of the special ticks employed, that no ledgers are altered after they have been checked.
Contingent liabilities are liabilities which have not arisen but may arise upon the happening of a certain event. Thus contingent liabilities may not involve the payment of money. While preparing balance sheet, only the liabilities which have arisen up to the date of balance sheet should be brought into account, however contingent liabilities should be stated of shape of note at the foot the liabilities side.
Contingent liabilities are liabilities which have not arisen but may arise upon the happening of a certain event. Thus contingent liabilities may not involve the payment of money. While preparing balance sheet, only the liabilities which have arisen up to the date of balance sheet should be brought into account, however contingent liabilities should be stated of shape of note at the foot the liabilities side.