Dear all, what is the audit procedure on these? Can’t find it from all IFS. New change so think mostly will be tested.
True, if there is a change in share capital, the change is the one mostly audited. However the audit proceedure will be applying substantive testing (not control). (use PROVE mnumonic)
a)PRESENTATION. Balance sheet figure is correct and sufficient disclosure is made in notes by inspecting the Fin Statements (FS)
Accounting records agree with the financial statements by inspection
Where complex mergers or business combinations have been made accounting records & FS are checked to ensure compliance with agreement terms and IFRS 3(BUSINESS COMBINATIONS)
Where issues have occured checks are made to ensure that amounts have been correctly split by recomputing the amounts relevent for share premium & ordinary share account
Ensuring that the amounts represented as in issure are in issue for sure by enquiring at the Registra of Companies, Stork Exchange etc
For directors’ remuneration accuracy is key (in line with the IFRS) thus full substantive testing is conducted with no sampling as follows: (use AEIOU mnumonic)
comparison of trends
equire with the audit comittee to find out amounts paid to each director in the year under consideration
inspect that disclosure of remuneration for all directors’ have been made in the FS
observe minutes of remuneration committee and al documentations with regard to directors pay.
recompute the directors’ remunerations especialy those based on performance to ensure accuracy
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