Capital (1)

Question 1

What does capital include?

Answer 1

Share capital, distributions and reserves

Question 2

What must issued share capital state?

Answer 2

The accounts must be agreed in total with the share register

Question 3

What should be done where a company handles its own registration work?

Answer 3

An examination of transfers on a test basis

Question 4

What happens where the registration work is dealth with by independent registrars?

Answer 4

Auditors will normally examine the reports submitted by them to the company

Obtain from them at the year-end a certificate of share capital in issue

Question 5

What is the main concern with share capital and reserves?

Answer 5

The company has compiled with the law

Question 6

What should auditors check?

Answer 6

Whether clients have compiled with local legislation about share issues or purchase of own shares

Question 7

When will auditors take particular care?

Answer 7

If there are any movements in reserves that cannot be distributed and should confirm that these movements are valud