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

Current Audit File The current audit file may involve inter alia: a) A copy of the audited financial statements and other report prepared such as a conclusion of audit work

Questionable Payments In some countries, business is often gained by bribing ministers or public officials or officers of companies or firms with whom one wishes to do business

techniques of vouching

This charter defines the mission, independence and objectivity, scope and responsibilities, authority, accountability and standards of the Internal Audit function. A charter i

Building Societies - Specialized Audit Situation Building Societies are organisations that exist to offer a savings and investment intermediate to the public and to lend to pe



Verification of Liabilities - Audit Process Usually speaking, the auditor's duty along with regard to liabilities can be summarised follows as: 1. To confirm the existence of

Beneficial Ownership or Title In January 1976 the famous case of Aluminium Industries vaassen B V v. Romalpa Aluminium Ltd radically altered the law along with regard to norma