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Audit - 3. page

DISTINCTION BETWEEN VOUCHING AND VERIFICATION

DISTINCTION BETWEEN VOUCHING AND VERIFICATION Verification is made on the basis of vouching. So, verification is a part of vouching. Even though they have some differences which are as follows: […]

VERIFICATION OF ASSETS

VERIFICATION OF ASSETS : The term ‘verification’ signifies the physical examination of certain class of assets and confirmation regarding certain transactions. Sometimes verification is confused with vouching but they differ […]

TECHNIQUES OF VERIFICATION:

TECHNIQUES OF VERIFICATION: 1. Inspection: It means physical inspection of the assets i.e. company cash in the cash box, physical inventory, inspection of shares certificates, documents etc. 2. Observation: The […]

ADVANTAGES OF VERIFICATION

ADVANTAGES OF VERIFICATION Advantages of verification are as under:- 1. It avoids manipulation of accounts. 2. It guards against improper use of assets. 3. It ensures proper recording and valuation […]

OBJECTS OF VERIFICATION

OBJECTS OF VERIFICATION Following are the objects of verification of assets and liabilities. 1. To show correct valuation of assets and liabilities. 2. To know whether the balance sheet exhibits […]

SCOPE OF VERIFICATION

SCOPE OF VERIFICATION Verification includes information on the following:- 1. That the assets were in existence on the date of the balance sheet. 2. That the assets had been acquired […]

POINTS TO BE CONSIDERED IN VERIFICATION

POINTS TO BE CONSIDERED IN VERIFICATION While conducting verification following points should be considered by the auditor:- 1. Existence: The auditor should confirm that all the assets of the company […]

VERIFICATION

VERIFICATION Spicer and Pegler have defined verification as, “it implies an inquiry into the value, ownership and title, existence and possession and the presence of any charge on the assets”. […]

IMPORTANCE OF VOUCHING

IMPORTANCE OF VOUCHING – Ensures genuineness of the transactions – Enables to know transactions – Helps to know relevance of the transaction – Facilitates proper allocation of capital & revenue, […]

OBJECTIVES OF VOUCHING

OBJECTIVES OF VOUCHING The basic objectives of vouching are as under: 1. To ensure that all the transactions are properly recorded in the books of accounts. 2. To see the […]