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Audit of Capital

praveen (Chartered Accountant) (6971 Points)

02 July 2009

What are the provisions one has to watch out for when auditing capital.

Give your views here.

Thanks in Advance.

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RAMANJU (here to updating the knowledge) (485 Points)
Replied 02 July 2009

While auditing share Capital following points must be kept in mind: 1) Is there any further allotment of shares? If it is, whether form - 2 is filed with ROC? 2) Whether there is any bonus shares allotment? SEBI guidelines are complied with or not? 3) Whether cash received or not on allotment of shares. 4) Treatment of Share Application Money received but not alloted shares? 5) Specific enquiry by auditor when there is shares further alloted to check whether cash received or not and if not the disclosed correctly. ( Sec. 227 (3) of the Companies Act,. Further points will be appreciated to update my knowledge. Thanks