Vouching of Cash Transactions | Auditing - Directors Fees | 11th Auditing : Chapter 6 and 7 : Vouching of Cash Transactions
Chapter: 11th Auditing : Chapter 6 and 7 : Vouching of Cash Transactions
Directors Fees
Directors Fees
Directors of a company are paid fees for attending
the Board meetings, they are known as Directors fees or Sitting fees. Directors
are entitled to get remuneration only when the Articles of Association of the
company provide. Hence the auditor should examine the Articles and the
resolution passed by the shareholders in the general meeting. Auditor should
check the attendance register which will provide the name of directors who
attended the board’s meetings and the minutes of the Board meeting to confirm
the presence of the directors for payment of remuneration. He should ensure
that amount paid towards fees or remuneration to directors is shown separately
in the Profit and Loss account.
Documents to be Vouched:
Articles of association, Minutes
book, Attendance register, Resolution passed by shareholders.
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