Question

describe  in detail Audit Verification and Six Point Technique with the references

Answer 1

Audit Verification means proving the truth or confirmation. This is the processof determining whether an asset or a liability shown in the balance sheet actually exists or not.

PHYSICAL EXISTENCE OF ASSET :- The technique of verification is checking the existence of assets, The assets must have a physical existence in some sort of movable or immovable property. The auditor can count, measure, examine and inspect for verification of various assets.
PROPER VALUATION: The technique of verification is the valuation of an asset. There are fixed and circulating assets. Management does the valuation process. The auditor can check the value assigned to each asset.
OWNERSHIP OF BUSINESS. The technique of verification is the determination of ownership. The asset must be owned by the business. The receipt, vouchers agreement, and deeds can help to note the title of ownership. The asset must be held in the name of the business.
POSSESSION WITH BUSINESS. The technique of verification checking the possession of the asset while being in the possession of management. An officer may hold stock in trade. The auditor should physically check the assets in the custody of various employees.

FREE FROM ON ASSETS CHARGE. When The loan technique is taken off the verification assets are is transferred the examination in the charge name of lenders. The auditor should check that assets are free. In case of borrowing, he can examine the need to note the charge.
PURCHASED FOR BUSINESS. The technique of verification is to check the purchase. The assets must be purchased in the name of the company. The documents can show the name of the company. The assets must not be held in the name of any employee.