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there is the audit of specific items on the syllabus,,am completely lost on the sub heading of shareholders,reserves and directors emoluments ,please help me are they asking for substantive procedures ?? if yes please give me examples ,any information concerning what this subheading is all about will be appreciated
Questions are rare on these areas. Substantive procedures:
Directors’ emoluments: eg compare all to contracts and AGM approvals. Reperform bonus calculations; trace some cash book payments to wage records.
Reserves: check to last years balances and verify all movements to supporting documents.
Shareholdings: trace some changes to transfer docs. If new shares issued recalculate receipts and trace to cash book, share capital account and share premium account (if there is one).
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