Verification and Valuation of Asset & Liabilities

Verification and Valuation of Assets and Liabilities Meaning and objectives of verification and valuation, the position of an auditor as regards the valuation of assets, verification and valuation of different items - Assets - land & building, plant & machinery, goodwill, investments, stock in trade; Liabilities - bills payable, sundry creditors, contingent liabilities

1. Assets and Liabilities Verification and Valuation Meaning and objectives of verification and valuation, the position of an auditor as regards the valuation of assets, verification and valuation of different items - Assets - land & building, plant & machinery, goodwill, investments, stock in trade; Liabilities - bills payable, sundry creditors, contingent liabilities

2. Meaning Verification P rocess of examining and confirming the accuracy, validity, and authenticity of financial information

3. Meaning Valuation A ssigning monetary values to assets, liabilities, and equity items. T o determine the fair market value

4. Objective Verification and Valuation Ensuring Accuracy and Reliability Detecting Errors and Fraud Compliance with Accounting Standards and Regulations Assessing Going Concern Assumption . Facilitating Decision-making Providing Stakeholder Confidence Add a footer 4

5. The position of an auditor As regards the valuation of assets Independence and Objectivity Understanding Valuation Methods Assessing Valuation Assumptions Testing Valuation Accuracy Challenging Management Estimates .Disclosures and Documentation Reporting Audit Findings Add a footer 5

6. Verification and Valuation Land & Building Verification Physical Inspection Ownership Documentation Valuation Cost Approach Market Approach Income Approach Add a footer 6

7. Verification and Valuation Plant & Machinery Verification Physical Inspection Asset Register Valuation Depreciation Useful Life Market Value Add a footer 7 Stock in Trade Physical Count Cutoff Procedures Cost Method Obsolescence and Damaged Goods

8. Stock Items • Raw Materials • Semi-Finished goods • Finished goods • Stores • Spare Parts • Goods on Consignment Valued At the cost price of the raw materials used + the proportionate amount of wages + other direct expenses + a percentage of overhead expenses Add a footer 8 Valuation Of Different Items Of Stock

9. Verification and Valuation Goodwill Verification Review of Acquisitions Impairment Testing Valuation Impairment Test Add a footer 9 Investment Confirming Ownership Custody and Control Fair Value Impairment

10. Verification and Valuation of Liabilities Bills Payable Verification Confirmation Review of Agreements Bank Reconciliation Valuation Accrual Basis Add a footer 10 Sundry Creditors Confirmation Accounts Payable Aging Analysis Accrual Basis

11. Verification and Valuation of Liabilities Contingent Liabilities Verification Review of Contracts and Legal Agreements Valuation Probability Assessment Disclosure Add a footer 11 Importance of Disclosure: For contingent liabilities, disclosure is crucial. Auditors ensure that all significant contingent liabilities are properly disclosed in the footnotes of the financial statements. The disclosure includes a description of the nature of the contingent liability, an estimate of the potential financial impact, and the management's plans for handling the contingency.