Difference between verification and valuation of assets and liabilities

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Verification (audit)

difference between verification and valuation of assets and liabilities

Vouching and Verification- CA IPCC Auditing-Audit- Part 1

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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.

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.



Auditing: Principles and Techniques by S. K. Basu

Slideshare uses cookies to improve functionality and performance, and to provide you with relevant advertising., Valuation implies critical examination and testing of determined values of assets on the basis of its utility during a particular period.

Point out the difference between Verification and Valuation?

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.

Verification means "proving the truth" or " confirmation ". 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. Thus, verification includes verifying: [2]. Verification in an audit process can be done offsite or onsite. Offsite verification [3] means verification by checking documents, official records, photos and by questioning staff responsible or otherwise trusted to be a reliable source for the facility in verification.

Question What are the problems that we find while evaluating our assets? How to overcome this problem?

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.
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