B Com Exam > B Com Notes > Auditing and Secretarial Practice > Verification and Valuation of Assets and Liabilities - Auditing & Secretarial Practice
Verification and Valuation of Assets and Liabilities - Auditing & Secretarial Practice | Auditing and Secretarial Practice - B Com PDF Download
Concept and Meaning of Verification
Verification means proving the correctness. One of the main work's of auditor is verification of assets and liabilities. Verification is the act of assuring the correctness of value of assets and liabilities, title and their existence in the organization. An auditor should be satisfied himself about the actual existence of assets and liabilities appearing in the balance sheet is correct. If balance sheet incorporates the incorrect assets, both profit and loss account and balance sheet do not present true and fair views.
Thus, verification means to confirm the truth or accuracy and to substantiate. It is a process by which the auditor satisfies himself not only about the actual existence, possession, ownership and the basis of valuation but also ensures that the assets are free from any charge. While verifying the assets, an auditor should consider the following points:
- Ensuring the existence of assets.
- Acquiring the assets for business.
- Ensuring the proper valuation of assets.
- Ensuring that the assets are free from any charge.
Question for Verification and Valuation of Assets and Liabilities - Auditing & Secretarial PracticeTry yourself: What is the main purpose of verification in auditing?View Solution
Concept And Meaning Of Valuation
Valuation is the act of determining the value of assets and critical examination of these values on the basis of normally accepted accounting standard. Valuation of assets is to be made by the authorized officer and the duty of auditor is to see whether they have been properly valued or not. For ensuring the proper valuation, auditor should obtain the certificates of professionals, approved values and other competent persons. Auditor can rely upon the valuation of concerned officer but it must be clearly stated in the report because an auditor is not a technical person.
An auditor should consider the following points regarding the assets while making valuation off assets:
- Original cost
- Expected working life
- Wear and tear
- Scrap value
The document Verification and Valuation of Assets and Liabilities - Auditing & Secretarial Practice | Auditing and Secretarial Practice - B Com is a part of the B Com Course Auditing and Secretarial Practice.
All you need of B Com at this link: B Com
|
55 videos|53 docs|24 tests
|
FAQs on Verification and Valuation of Assets and Liabilities - Auditing & Secretarial Practice - Auditing and Secretarial Practice - B Com
| 1. What is the meaning of verification of assets and liabilities in auditing? |  |
Ans. Verification of assets and liabilities refers to the process of examining the existence, ownership, and valuation of assets and liabilities reported in the financial statements. It involves verifying whether the assets and liabilities are valid and accurately represented in the financial statements.
| 2. What are the methods used for valuation of assets and liabilities during auditing? | |
Ans. The methods used for valuation of assets and liabilities during auditing are:
1. Cost Method - It involves valuing the assets and liabilities based on their original cost.
2. Market Value Method - It involves valuing the assets and liabilities based on their market value.
3. Income Method - It involves valuing the assets and liabilities based on their income-generating capacity.
4. Replacement Cost Method - It involves valuing the assets and liabilities based on the cost of replacing them.
| 3. What is the importance of verifying assets and liabilities during auditing? | |
Ans. The importance of verifying assets and liabilities during auditing are:
1. It helps to ensure that the financial statements are accurate and reliable.
2. It helps to prevent fraud and errors in the financial statements.
3. It helps to identify any misstatements or omissions in the financial statements.
4. It helps to provide assurance to stakeholders that the financial statements are a true and fair representation of the company's financial position.
| 4. What are the consequences of not verifying assets and liabilities during auditing? | |
Ans. The consequences of not verifying assets and liabilities during auditing are:
1. Inaccurate financial statements may mislead investors and other stakeholders.
2. Potential legal and financial liabilities may arise due to inaccurate financial statements.
3. The company's reputation may be affected, leading to a loss of trust and confidence among stakeholders.
4. The company may face regulatory actions and sanctions for non-compliance with auditing standards.
| 5. What is the role of auditors in verifying assets and liabilities during auditing? | |
Ans. The role of auditors in verifying assets and liabilities during auditing are:
1. The auditors are responsible for planning and performing the audit to obtain reasonable assurance that the financial statements are free from material misstatement.
2. The auditors use various audit procedures to verify the existence, ownership, and valuation of assets and liabilities.
3. The auditors provide an opinion on the financial statements based on their audit findings.
4. The auditors may also provide recommendations for improving the company's internal controls and financial reporting processes.
Related Exams
About this Document
|
23.4K Views |
|
4.84/5 Rating |
|
Nov 15, 2024 Last updated |
Document Description: Verification and Valuation of Assets and Liabilities - Auditing & Secretarial Practice for B Com 2024 is part of Auditing and Secretarial Practice preparation.
The notes and questions for Verification and Valuation of Assets and Liabilities - Auditing & Secretarial Practice have been prepared according to the B Com exam syllabus. Information about Verification and Valuation of Assets and Liabilities - Auditing & Secretarial Practice covers topics
like and Verification and Valuation of Assets and Liabilities - Auditing & Secretarial Practice Example, for B Com 2024 Exam. Find important definitions, questions, notes, meanings, examples, exercises and tests below for Verification and Valuation of Assets and Liabilities - Auditing & Secretarial Practice.
Introduction of Verification and Valuation of Assets and Liabilities - Auditing & Secretarial Practice in English is available as part of our Auditing and Secretarial Practice
for B Com & Verification and Valuation of Assets and Liabilities - Auditing & Secretarial Practice in Hindi for Auditing and Secretarial Practice course.
Download more important topics related with notes, lectures and mock test series for B Com
Exam by signing up for free. B Com: Verification and Valuation of Assets and Liabilities - Auditing & Secretarial Practice | Auditing and Secretarial Practice - B Com
Description
Full syllabus notes, lecture & questions for Verification and Valuation of Assets and Liabilities - Auditing & Secretarial Practice | Auditing and Secretarial Practice - B Com - B Com | Plus excerises question with solution to help you revise complete syllabus for Auditing and Secretarial Practice | Best notes, free PDF download
Information about Verification and Valuation of Assets and Liabilities - Auditing & Secretarial Practice
In this doc you can find the meaning of Verification and Valuation of Assets and Liabilities - Auditing & Secretarial Practice defined & explained in the simplest way possible. Besides explaining types of
Verification and Valuation of Assets and Liabilities - Auditing & Secretarial Practice theory, EduRev gives you an ample number of questions to practice Verification and Valuation of Assets and Liabilities - Auditing & Secretarial Practice tests, examples and also practice B Com
tests
|
Explore Courses for B Com exam
|
|
Signup for Free!
Signup to see your scores go up within 7 days! Learn & Practice with 1000+ FREE Notes, Videos & Tests.
Related Searches
Extra Questions
,Viva Questions
,practice quizzes
,ppt
,past year papers
,Semester Notes
,Important questions
,shortcuts and tricks
,study material
,MCQs
,Verification and Valuation of Assets and Liabilities - Auditing & Secretarial Practice | Auditing and Secretarial Practice - B Com
,mock tests for examination
,Exam
,Previous Year Questions with Solutions
,Sample Paper
,Verification and Valuation of Assets and Liabilities - Auditing & Secretarial Practice | Auditing and Secretarial Practice - B Com
,Free
,Objective type Questions
,video lectures
,Verification and Valuation of Assets and Liabilities - Auditing & Secretarial Practice | Auditing and Secretarial Practice - B Com
,Summary
;
Additional Information about Verification and Valuation of Assets and Liabilities - Auditing & Secretarial Practice for B Com Preparation
Verification and Valuation of Assets and Liabilities - Auditing & Secretarial Practice Free PDF Download
The Verification and Valuation of Assets and Liabilities - Auditing & Secretarial Practice is an invaluable resource that delves deep into the core of the B Com exam.
These study notes are curated by experts and cover all the essential topics and concepts, making your preparation more efficient and effective.
With the help of these notes, you can grasp complex subjects quickly, revise important points easily,
and reinforce your understanding of key concepts. The study notes are presented in a concise and easy-to-understand manner,
allowing you to optimize your learning process. Whether you're looking for best-recommended books, sample papers, study material,
or toppers' notes, this PDF has got you covered. Download the Verification and Valuation of Assets and Liabilities - Auditing & Secretarial Practice now and kickstart your journey towards success in the B Com exam.
Importance of Verification and Valuation of Assets and Liabilities - Auditing & Secretarial Practice
The importance of Verification and Valuation of Assets and Liabilities - Auditing & Secretarial Practice cannot be overstated, especially for B Com aspirants.
This document holds the key to success in the B Com exam.
It offers a detailed understanding of the concept, providing invaluable insights into the topic.
By knowing the concepts well in advance, students can plan their preparation effectively.
Utilize this indispensable guide for a well-rounded preparation and achieve your desired results.
Verification and Valuation of Assets and Liabilities - Auditing & Secretarial Practice Notes
Verification and Valuation of Assets and Liabilities - Auditing & Secretarial Practice Notes offer in-depth insights into the specific topic to help you master it with ease.
This comprehensive document covers all aspects related to Verification and Valuation of Assets and Liabilities - Auditing & Secretarial Practice.
It includes detailed information about the exam syllabus, recommended books, and study materials for a well-rounded preparation.
Practice papers and question papers enable you to assess your progress effectively.
Additionally, the paper analysis provides valuable tips for tackling the exam strategically.
Access to Toppers' notes gives you an edge in understanding complex concepts.
Whether you're a beginner or aiming for advanced proficiency, Verification and Valuation of Assets and Liabilities - Auditing & Secretarial Practice Notes on EduRev are your ultimate resource for success.
Verification and Valuation of Assets and Liabilities - Auditing & Secretarial Practice B Com Questions
The "Verification and Valuation of Assets and Liabilities - Auditing & Secretarial Practice B Com Questions" guide is a valuable resource for all aspiring students preparing for the
B Com exam. It focuses on providing a wide range of practice questions to help students gauge
their understanding of the exam topics. These questions cover the entire syllabus, ensuring comprehensive preparation.
The guide includes previous years' question papers for students to familiarize themselves with the exam's format and difficulty level.
Additionally, it offers subject-specific question banks, allowing students to focus on weak areas and improve their performance.
Study Verification and Valuation of Assets and Liabilities - Auditing & Secretarial Practice on the App
Students of B Com can study Verification and Valuation of Assets and Liabilities - Auditing & Secretarial Practice alongwith tests & analysis from the EduRev app,
which will help them while preparing for their exam. Apart from the Verification and Valuation of Assets and Liabilities - Auditing & Secretarial Practice,
students can also utilize the EduRev App for other study materials such as previous year question papers, syllabus, important questions, etc.
The EduRev App will make your learning easier as you can access it from anywhere you want.
The content of Verification and Valuation of Assets and Liabilities - Auditing & Secretarial Practice is prepared as per the latest B Com syllabus.
|
© EduRev
|
Education Revolution
|
Follow Us
|
Signup to see your scores
go up within 7 days!
Access 1000+ FREE Docs, Videos and Tests
Takes less than 10 seconds to signup