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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 of a company are paid fees for attending the Board meetings, they are known as Directors fees or Sitting 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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