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I needed help regarding the substantive procedureand the assertions to be carried out for share capital, reserves and directors emoluments ,
and the related income statement entries .can someone please explain or share this book section with me,its urgent
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Hi,
Can you please help because i’m unsure about this too.
What are the substantive procedures and the assertions to be carried out
for share capital , reserves and directos emoluments.Im not sure but I think for share capital auditor can check authorised limit from the companys articles of association,for directors emoluments review the directors contract with company dont know about reserves.Hope that helps.
Directors’ emoluments should be authorised by shareholders. Should be properly calculated (eg bonuses related to profits). Rest is pretty much like wages.
Reserves move only by certain journals that depend on other items:
Increase by: retained profits, revaluations, share premium by share issues above par.
Decrease by dividends and bonus issues.
Because the volume of these transactions will be low, they can be 100% compared to other matters.
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