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:

More from this Section

  • Arithmetic mean
    Arithmetic mean is an average found by adding the numbers in an array and dividing by the total number of items present.
  • Physical units
    Physical units are the actual units to be accounted for during a period, irrespective of any work performed. To keep track of these units, add the units started...
  • Average-cost method
    Average-cost method is an inventory costing method that uses the weighted average unit cost to allocate to ending inventory and cost of goods sold the cost of goods available for sale.
  • Convertible and callable bonds
    Bonds that can be converted into common stock at the bondholder’s option are convertible bonds. The conversion feature generally is attractive to bond buyers.
  • Additional paid-in capital
    Additional paid-in capital includes the excess of amounts paid in over par or stated value and paid in capital from treasury stock.
  • Honor of notes receivable
    A note is honored when its maker pays it in full at its maturity date. For an interest bearing note, the amount due at maturity is the face value of the note plus interest...
  • Convertible bonds
    Convertible bonds refer to the bonds that permit bondholders to convert them into common stock at their option.