Share capital - audit process, Auditing

Assignment Help:

Share Capital - Audit Process

Share capital is a special type of liability and when it has been issued during the year then verification procedures are as follows:

1. Confirm that the matter is within the limits authorised through Articles and Memorandum of Association.

2. Verify the directors' minutes to ensure about the matter was authorised.

3. Vouch the accurate recording of monies received.

4. Ensure about the correct treatment of any share premium got in so doing keep in mind that the share premium account can merely be required to matter fully paid bonus shares, write off expenses of share or debenture issue, write off preliminary expenses, write off discounts on shares or debentures and to give for a premium payable on the redemption of redeemable priority shares.

5. Check the prospectus whether there was one application, application and allotment sheets, and the cash received records, the share register, share certificate counterfoils and repayment to failed applicants.

6. The payment vouches of underwriting and other fees.

7. When the matter is not for cash therefore for other considerations as the goodwill and their assets of a business, the agreement vouch and ensure about the all entries are appropriately made.

8. Whether the matter was subject to approval from the Nairobi Stock Exchange, after that ensure that approval has been acquired. Whether it has not been acquired all the money subscribed is returnable. Ensure about the all the money was placed in a divide bank account until all conditions were satisfied. Ensure about the minimum subscription has been obtained since if there were not sufficient subscribers then the entire is returnable.

Whenever there is no new matter of shares the audit work involves:

1. Determination of the total shares of all class as stated in the balance sheet and the receiving of a list share holdings that in total should agree along with the balance sheet total.

2. Testing the balances in the share register along with the list and vice versa.

3. Whether the share register is maintained through an independent firm of registrars, the auditor should receive a certificate such the above work has been done.

4. Vouch transfers to such the share register and share transfer forms.


Related Discussions:- Share capital - audit process

Auditing and assurance in australia, i need an assignment for auditing with...

i need an assignment for auditing with word count of 1750

Ias 28 - audit process, IAS 28 - Audit Process IAS 28 applies in accou...

IAS 28 - Audit Process IAS 28 applies in accounting for investments in associates, except those held through: Venture capital organisations, or Mutual funds,

The internal audit differ from an external audit, Describe How does the int...

Describe How does the internal audit differ from an external audit? Ans) Internal audit nothing but the checking the product that you formed. External audit is checking you

Principles of auditors procedures, Principles of Auditors Procedures i...

Principles of Auditors Procedures i. The financial statements should be prepared on the source of conditions existing on the balance sheet date. ii. The material post balance

Selection of a sample - audit process, Selection of a Sample - Audit Proces...

Selection of a Sample - Audit Process The following accounts must be involved in debtor's circularisation: 1) Large balances since they are large and the moreover you can sub

Auditor, auditor is a watch dog not a blood hound

auditor is a watch dog not a blood hound

Relevance of audit evidence, Relevance of Audit Evidence The relevance...

Relevance of Audit Evidence The relevance of audit evidence has to be determining in relation to the overall objective of forming a reporting and opinion on the financial stat

Valuation - long term contracts, Valuation - Long Term Contracts The b...

Valuation - Long Term Contracts The basis of valuation should be cost plus attributable profit as benefits less foreseeable losses and progress payments both receivable and re

General phases of control evaluation, General phases of control evaluation ...

General phases of control evaluation are: Phase 1: Understand and document • Understand the client's internal control • Document the understanding of internal control o

Necessity of accountant, Necessity of Accountant The accountant is no...

Necessity of Accountant The accountant is not necessary To expand his enquiries beyond the information enclosed in the relevant documents as supplemented through such e

Write Your Message!

Captcha
Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd