CA Inter P5 · Chapter 5 · Question 9 of 12
While verifying share capital issued during the year by Pranav Textiles Ltd., the auditor should examine:
Test yourself: pick an answer
Reveal answer & explanation
Correct answer: A) Board and general meeting minutes, the register of members, and the return of allotment filed with the Registrar
Explanation
Verification of share capital involves checking authorisation in the memorandum and resolutions, minutes approving allotment, the register of members, receipt of money in the bank, and filings such as the return of allotment with the Registrar. The cash book alone does not show that shares were properly authorised and allotted.
More Audit of Items of Financial Statements MCQs
- Q11The auditor of Nandan Security Services Ltd. suspects that the payroll includes 'ghost' employees. Which procedure is most effective in…
- Q12Which procedure is most effective in identifying unrecorded contingent liabilities of Arjun Logistics Ltd.?
- Q1Goods were dispatched to a customer of Lavanya Ceramics Ltd. on 31 March (the year-end) with control passing on dispatch, but the invoice…
- Q2The auditor of Bhoomi Engineering Ltd. selects assets physically present on the factory floor and traces them to the fixed asset register…
- Q3Title deeds of a factory building owned by Yatin Polymers Ltd. are lodged with a bank as security for a term loan. To verify title, the…