B A CODE 481 AUDITING SOLVED ASSIGNMENT 2
Today we feel pleasure to upload solved assignment 2 for
code 481 auditing for B A students. This solved assignment 2 have five
questions and the first question is about difference between verification and
vouching.
FOR COMPLETE SOLVED ASSIGNMENT “CLICK HERE”
MEANING:
VOUCHING:- Means checking the accuracy of the
transactions recorded in the books of accounts.
VERFICATION:- Verification means a process to
substantiate the validity of assets and liabilities appearing the Balance
Sheet.
BASIS:
VOUCHING: Based on documentary evidence.
VERIFICATION: Based on observation and documentary
evidence.
OBJECTIVE:
VOUCHING: Vouching objective is to examine the
correctness, validity and completeness of the transactions.
VERIFICATION: Verification
is to confirm the ownership, possession, existence, valuation and disclosure of
the items appearing on the Balance Sheet.
THE VERIFICATION OF ASSETS THROUGH PHYSICAL EXISTENCE
The assertion of the existence of an asset or liability
is the basis for verifying whether that particular asset or liability existed
with small business on the given date. Transactions recorded in the books of
accounts are checked to make certain that they actually took place. It is not
enough to check the company’s books of accounts to confirm existence. Other corroborative
procedures have to be performed. Similarly, rights assertions relate to the
assets of the enterprise and are checked to ensure that the small business owns
or controls the right to those assets.
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