Difference between verification and valuation of assets and liabilities
- Verification and Valuation of Assets
- What are the differences between valuation and verification of assets?
Verification and Valuation of Assets
this post distinguishes between verification and valuation of assets. verification is impossible even though they have some differences which are as follows: 1. Concept And Meaning Of Verification And Valuation Of Assets And Liabilities.and
Vouching is the soul of Auditing because it forms a base for an effective audit procedure. Both the two terms are the first two steps of Auditing, infact vouching helps in the process of verification. In firner terms, Vouching implies the act of checking the vouchers, to identify the authenticity of the transactions recorded. Conversely, Verification alludes to a process, adopted by the auditor to examine the assets and liabilities. To a layman, these two processes are one and the same thing, but they are different. So, here is an article presented to you which attempts to shed light on the differences between Vouching and Verification, which we have compiled after a thorough study on the two. Basis for Comparison Vouching Verification Meaning Vouching means checking the accuracy of the transactions recorded in the books of accounts.
Valuation implies critical examination and testing of determined values of assets on the basis of its utility during a particular period. The valuation of assets is made on the basis of generally accepted accounting principles. It helps in assessing the correct financial position of the enterprise. Verification means proving the truth or confirmation. It is an inquiry into the value, ownership and title, existence and possession, the presence of any charge on the assets of the organization.
Register now or log in to join your professional community. Valuation is monetary equivalent of the stock or material in hand while verification is the determination or quantification of the material in stock and checking it's deviation from the figures shown in the books. Verification means proving the correctness. One of the main work's of auditor is verification of assets and liabilities. 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. Valuation and verification of assets are complementary to each other. Until and unless the valuation of assets is made, verification is impossible even though they have some differences which are as follows:.
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. 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.
What are the differences between valuation and verification of assets?