AB & Co.
May 31, 20×7.
Audit procedures to verify report include
1. Check that no allotment is made of any share capital of the company unless the amount stated in the prospectus as the minimum amount which in the pinion of directors must be raised by the issue of share capital has been subscribed.
2. Ensure that all moneys received from applicants is deposited and kept in a separate bank account in a scheduled bank until returned or until certificate to commence the business is obtained.
3. Verify the amount received on application.
4. Ensure that the amount payable on application is the full nominal
amount of the share
5. Check that the company has taken a decision within ten days of the closure of the subscription lists as to what applications have been accepted
6. successful and that a refund has been made in the case of the unaccepted or unsuccessful applications within ten days of such
7. Verify the return of allotment filed with the registrar
8. Check terms of issue with the memorandum and articles of association and prospectus.
9. Inspect the minutes of the directors’ meeting for the allotment of shares.
10: Reconcile register of members to share capital control account.
11. Ensure that the summary of receipts and payments of the company has been prepared up to a date within seven days of the report.
12. Ensure that the company within 90 days after the allotment of shares and within 45 days after the application ‘Ofthe transfer of any shares has ready for delivery the share certificates.
13. Ensure that commission has been paid to any person in consideration of his subscribing or agreeing to subscribe, for any shares in or debentures of the company, or procuring or agreeing to procure subscriptions, whether absolute or conditional for any shares in or debentures of the company if:
(a) The payment ofthe commission is authorized by the articles;
(b) The commission paid on agreed to be paid does not exceed such rate cent of amount as may generally or in a particular case be
fixed by the Authority;
(c) The amount or rate per cent of the commission paid or agreed. 14. Check that separate disclosure has been made for receipts fromshares, redeemable capital, other sources, commission or discount on the issue or sale of shares and preliminary expenses.
15. Vouch in detail other receipts and payments not covered above.
16. Count cash and check with the summary of receipts and payments.
17. Reconcile bank accounts.