All claims and demands against a city, whether founded on contract or otherwise, and to be paid from any fund, including a municipal utilities fund, shall be filed with the city auditor. The city auditor shall examine each claim filed and determine whether or not it is properly itemized and certified in the form prescribed in section 54-14-04. If a claim is filed on a contract, the city auditor shall determine whether or not the items charged are correct and were incurred by proper authority. The auditor shall endorse the auditor’s approval upon any claim that the auditor     finds to be correct. If the city auditor disapproves any claim in whole or in part, the auditor shall report the auditor’s reasons therefor to the governing body. The city auditor shall report all evidence taken by the auditor in connection with any claim. No claim shall be considered by the governing body until it shall have been examined and reported upon by the auditor and audited and adjusted by the proper committee or member of the governing body.