Capital commitments - audit process, Auditing

Capital Commitments - Audit Process

The Companies Act needs capital commitments be disclosed through a way of note to the accounts.  Therefore the auditor must execute sufficient work to certify that such amounts are fairly and completely stated.  He may receive this information from the directors in a letter of representation however work must be performed to verify the amounts stated.  The director's minutes should be reviewed for evidence of authority to situate capital contracts.  Examination of capital commitments might be carried out and discussions held along with the suitable management staff.  Correspondence along with lawyers should be perused to find out whether any instructions have been provided for drawing up major contracts.  The notice must distinguish among expenditure authorised through the directors and the contracts that have already been entered into.

Posted Date: 1/28/2013 1:13:42 AM | Location : United States







Related Discussions:- Capital commitments - audit process, Assignment Help, Ask Question on Capital commitments - audit process, Get Answer, Expert's Help, Capital commitments - audit process Discussions

Write discussion on Capital commitments - audit process
Your posts are moderated
Related Questions
Length: 2000 words Submission method options Alternative submission method Task Question 1 (5%) Case: Battersby and Associates Chartered Accountants is a successful mid-tier ac

challenges facing sasini company"s audited statements

Disclosures about Inventories - IAS 2 IAS 2 specifies disclosures about inventories. In a large manufacturing company, no article in the balance sheet appears verification

Liability to third parties For long time liability to third parties existed only in respect to physical damage. Liability for financial loss is a current development.  Illustra

YvesLaurent has just been put in charge of the BeautyNatural Inc. audit.BeautyNatural is a small, but growing retail chain of natural cosmetics stores. BeautyNatural needs to borro

Final Review of the Financial Statements The work we have considered so far has shown which the auditor first gathers facts that the enterprise and the environment it operates

You are auditing XYZ company for the year ended 12/31/2012 and will be expressing an opinion on their financial statements as of that date. You completed your field work on 1/21/13

Seek Out Transactions with Related Parties  Within the course of the audit, the auditor carries out process that may identify the existence of transactions along with related

Capital allowances vs. Depreciation Whether the client can prove such they will keep the existing levels of investment in original terms, then there may be justification to ac

Describe the management system within your case study business. Assess the risk of fraud in this business, and suggest methods for detection Management system in this ca