principles of auditing and analysis of auditing

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1. Verification And Valuation of assets and liabilities Presented By Disha S K Divya B V

2. Verification Verification means ‘Proving the Truth’ or “conformation’. Verification is an auditing process in which auditor satisfy himself with the actual existence of assets and liabilities appearing in the statement of financial position.

3. Objectives of Verification To show correct value of assets and liabilities. To know whether the balance sheet show a true and fair view of the state of affairs of the business. To detect frauds and errors, if any. To find out whether assets were in existence. To find out whether there is an adequate internal control regarding acquisition, utilization and disposal of assets. To verify the arithmetic accuracy of the books of accounts. To ensure that the assets have been recorded properly.

4. Valuation Valuation is the process of valuing a company’s assets and liabilities for financial reporting purposes. Several accounting valuation methods are used while preparing financial statements in order to value assets.

5. Objectives of Valuation To assess the correct financial position of the concern. To find out the real values of assets as per GAAP. To enquire about the mode of investment of the capital of the concern. To know the real position of Profit and Loss. To determine the true position of assets at the Balance sheet date. It certifies the correctness of the value of assets and liabilities. It takes place for the whole year’s transactions.