Category: Auditors Duty
Auditors Duty
Duties of Auditor regarding the distribution of dividends The auditor should perform the following duties regarding the distribution of dividend: 1. The auditor should examine the Memorandum of Association …
Auditors Duty
Issue of Bonus Shares The issue of bonus shares refers to a good method of capitalizing huge profits or reserves with the company, However, the company may capitalize its …
Auditors Duty
Auditor duty in verification of Outstanding Liabilities At the close of the year, there may be some outstanding liabilities for expenses, which must bring into accounts to arrive at …
Auditors Duty
What are Calls in Arrears? When one or more shareholders fail to pay the amount due from them towards allotment and/or calls, such dues are called calls-in-arrears. If call …
Auditors Duty
What is a Sinking Fund? A sinking fund is a fund, which is created with a specific purpose such as 1. To redeem or repay a long term liability …
Auditors Duty
What is a General Reserve? A general reserve is a reserve, which is created by appropriation of profits. It is created without any specific or particular purpose. The aim …
Auditors Duty
What are Capital Reserve? The term capital reserve does not include any amount regarded as free for distribution through the Profit and Loss Account. A capital reserve is generally …
Auditors Duty
What is Specific Reserve? A specific reserve is one, which is created for some specific purpose by debiting Profit and Loss Appropriation Account. Normally, it is available for the …
Auditors Duty
What are Secret Reserves The term secret reserve refers to a reserve the existence of which is not disclosed in the Balance Sheet. Secret reserves are also called Hidden …
Auditors Duty
What are Reserve funds? The word “Fund” in relation to any reserve can be used only where such a reserve is specifically represented by earmarked investments. In other words, …
