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agree share register/Annual Share report to shares certificate is existence or completeness check ?
And Agree Share certificate to share register/Annual Share report is existence or completeness check ?
I am unable to see the answer relevant to my question as in this link nothing mentioned regarding shares capital or share register ?
Please Help Me Out.
Sorry I am on holiday with poor Internet and only part of my answer posted. The link illustrates how the assertions are linked to a “direction” of testing. Applying that to your example, the first is completeness and the second existence.
I am still confuse due to this example :
That If we Agree NCA Register to Physical Asset present at floor is existence.
And If we Agree Physical Present Asset on Floor to NCA Register is Completeness.Same Should be the case with Shares Register/Shares Annual Report while agreeing with Share certificates issued.
Like If we Agree Shares Register/Shares Annual Report to Shares Certificate issued it should be existence,
And If we Agree Shares Certificate to Shares Register/Shares Annual Report then it should be completeness, As Per my Understanding but you told the opposite of this, kindly elaborate it, where I am getting wrong by the why ?
As it came in my exam and I did it according to my understanding.Suppose X Co’s financial statements show an investment of $2,500 for 1,000 ordinary shares in Y Co.
X Co shows you a share certificate for 1,000 ordinary shares in Y Co. Do those shares exist?
A shareholder/share register is a list of active owners of a company’s shares, updated on an ongoing basis. The shareholder register requires that every current shareholder is recorded. The register includes each person’s name, address, and the number of shares owned. In the UK, this record is kept at the company’s registered – this is Y Co’s (NOT X Co’s) – or at an inspection location.
The auditor can look at the share register and confirm X Co’s 1,000 shares exist.
But is 1,000 complete? What if, scanning the register, the auditor sees another 500 shares owned by X Co? In that case, X Co should have an additional share certificate for another 500 shares.
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