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
The modern integrated audit approach combines elements of various traditional audit areas having financial, operational, and information technology.

Preferred stock valuation 1. Features of preferred stock (You may review what you've learned about preferred stock from TCA 221): a. Multiple classes in terms of convertibil

WHAT OF COST OF JOURNAL ENTRY?

Judgmental Sampling The Judgement sampling is where, auditor using his own experience and awareness of the client's business and situations selects the sample to be tested with

(a) Define each of the following four concepts. -Master Data Management -Data Quality -Data Governance -Cloud Computing Explain how they relate to the various Busine

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 suffici

Financial Instruments - IAS 32 and IAS 39 IAS 39 and IAS 32 are examinable to the extent such they deal along with the presentation and measurement of equity, debt or else con

Why is studying Auditing different from studying other accounting topics?

Systems Based audit approach The basis of IAS 400, Risk Assessment and Internal Control. The term systems audit refers to the typical audit approach to medium and large comp

Fraudulent financial reporting Involves intentional misstatements or errors of amounts or disclosures in financial statements to mislead financial statement users. Fraudulent f