Audit work on the holding company, Auditing

Audit Work on the Holding Company

We will focus on the verification of investments in subsidiary companies.

1. Get a schedule that should contain the following information. All the data such the Companies Act needs to be disclosed in the holding company's own accounts, copies of the accounts of each and every subsidiary along with a note who that the auditor is, summary of movements in investments in subsidiary, details of any qualifications in any of the audit reports, and on current and loan accounts along with its subsidiary, reconciliations of intercompany balances.

2. Ownership and Existence must be verified through examining the share certificates and ensuring such they are in the identification of the holding company. Whether not, then blank signed transfer forms should be obtainable from the nominees. Whether the share certificates are held through third parties, after that an suitable certificate must be acquired.

3. Loan and Current accounts: Their verification is usually done through acquiring a certificate from its subsidiary verifying the balances. Also whether the auditor of the holding company is the auditor of the subsidiary, so he can reconcile entries in equally sets of books himself. The auditor must convince himself about dealings among group companies are not required to cover up material errors.

4. Valuation: Valuation is verified as follows: whether the shares were obtained in the year consider authorization and cost. Examine accounting treatment of any discount and premium upon acquisition and any dividends obtained out of pre-acquisition profits. The balance sheet value of its subsidiary might be considered and this could involve review of each individual subsidiary's account to verify that it is now a going concern.

Posted Date: 1/28/2013 4:54:35 AM | Location : United States







Related Discussions:- Audit work on the holding company, Assignment Help, Ask Question on Audit work on the holding company, Get Answer, Expert's Help, Audit work on the holding company Discussions

Write discussion on Audit work on the holding company
Your posts are moderated
Related Questions
hi, im a preformer and i want to know should i be myself duing an audition or should i act proper ans sweet like everyone els

Insurance Companies Authoritative documents involved as: The Insurance Act The Companies Act IFRS 4 Insurance Contracts The major legislation governing insu

A municipal village or a nonprofit organization solicits bids for the annual audit from local audit firms, and the firm with the lowest bid is selected. Answer the following que

Classification of Individual Business Risk Individual business risk can be low or high impact and low or high likelihood. Here are some illustrations for a satirical magazine.

Common stock valuation 1. Features of common stock (You may review common stock learned from TCA 221) a. Residual claim on income and assets (after debt holders and preferre

Share and deposits Shares may consist of subscription shares and paid up shares. Interest on shares might be credited to the accounts rather than being paid to ensure proper co


Statutory Audits The audits are compulsory below statute in the case of a large amount of number of undertakings involving the following as:        Undert

Verification Work - Audit Process At the same time the audit process will need verification work as an example: examination of costing records, allocation and verification of

#quInternal Audit checklist for fixed assetsestion..