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
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
Verification and Valuation of Liabilities and Guidelines for auditors Verification of liabilities is equally important as that of verification of assets. The Balance Sheet will reveal the true
What are Impersonal ledgers? Impersonal ledgers are also called General Ledgers or Nominal Ledgers. They are of two types such as Nominal Accounts and Real Accounts. Nominal accounts
Meaning of Vouching Vouching involves not only the substantiating the entry in the books of account with any documentary evidence like assessments, receipts, counterfoils of receipt book or
Audit of Shares issued for Consideration other than Cash Shares may be issued for consideration other than cash under the following circumstances: 1. Issue of Shares to Vendors:
Audit of Shares Issued for Cash The audit procedure in case of audit of shares issued for cash can be studied in three stages, as below: 1. Application
Cash is a highly liquid asset. Hence, the probability of committing frauds and errors is certainly more in cash transactions. Therefore, we have to verify cash transactions with
Procedure for conducting Investigation in Auditing The following procedure are followed while conducting Investigation in auditing. 1. Determination of Nature and Scope The instructions of the client regarding