The
Definition Of

Meaning of verification

Meaning of verification is ‘proving the truth’, or ‘confirmation’. An auditor has not6 only to see the arithmetical accuracy and bona fides of the auditor has not only to see the arithmetical accuracy and bona fides of the transactions in the books of account by vouching only, but has also to see that the assets as recorded in the balance-sheet actually exist. The fact that there is an entry regarding the purchase of an asset and which entry has been found to be correctly recorded, is not a proof that the asset is in the possession of the concern at the date of the balance-sheet. It is possible that after the asset had been acquired and the necessary and no entry had been made regarding these facts in the books of account before the closing of the financial year. He has also to see whether a particular asset as recorded in the balance-sheet on the day of the closing of the books of account exists or not.

Share it:  Cite

More from this Section

  • Debit and Credit
    The terms debit and credit are synonymous with left and right. Debit indicates left, and ...
  • The Benefit of Budgeting
    The primary benefit of budgeting are: It requires all levels of management to a plan ...
  • Post-closing trial balance
    The post-closing trial balance is a list of permanent accounts and their balances after ...
  • Efficient Auditing
    Efficient Auditing is generally conducted in case of public enterprises to see whether ...
  • Target net income
    Target net income is the income objective set by the management. It indicates the sales ...