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
With reference to the case study business, identify appropriate audit tests to be carried out. Prepare a statement of the work to be carried out and the manner in which it will be

what is the role of audit trainee in managing the discrete assignment?

Techniques of obtaining evidence ISA 500 mentions them as: (a) Inspection of records or documents, (b) Inspection of tangible assets, (c) Observation, (d) Inquiry, (e) C

Presentation and Disclosure - Audit of Accounting Estimates An enterprise should involve the following information relating to a discontinuing operation in its financial state

Role of Accountant The Accountant's Role Every year a lawyer who such handles client's money is used to created to the Law Society of US a report through a qualified accoun

Audit Reports - Going Concern In the vast widely of cases, the going to relate assumption is suitable and whether applied no mention require be made in the auditor's report.

Research and development Panorama Ltd manufactures and distributes a wide range of general pharmaceutical products. Selected audited data for the reporting period ended 31 Dec

Q. What is Transferred Basis? Transferred Basis - A transferred basis is the foundation of property in the hands of a transferor, donor or GRANTOR. In this sense a prior owner'

Write a paper (may be real or fictional) involving Accounting and business moral dilemmas. The paper should be 13 pages (double spaced) in accordance with APA guidelines. more des

Litigation and claims ISA 501 Audit Evidence - Additional Consideration for exact Items requires such auditors should carry our process to become aware of any material litig