Audit procedures for share capital, distributions and reserves (1)

Question 1

Share equity capital (share capital documents constitution)

Answer 1

Agree the authorised share capital with statutory documents governing the company’s constitution

Question 2

Share equity capital (changes share capital resolutions)

Answer 2

Agree changes to authorised share capital with properly authorised resolutions

Question 3

Issue of shares (issue general board minutes)

Answer 3

Verify any issue of share capital or other changes during the year with general and board minutes

Question 4

Issue of shares (issue terms constitution authority)

Answer 4

Ensure issue or change is within the terms of the constitution, and directors possess appropriate authority to issue shares

Question 5

Issue of shares (cash receivable(s) included)

Answer 5

Confirm that cash or other consideration has been received or receivable(s) is included as called-up share capital not paid

Question 6

Verify transfers of shares with reerence to (Cor..)

Answer 6

Correspondence

Question 7

Verify transfers of shares with reerence to (Transfer shares)

Answer 7

Completed and stamped transfer forms

Question 8

Verify transfers of shares with reerence to (Certificates)

Answer 8

Cancelled share certificates

Question 9

Verify transfers of shares with reerence to (Directors’)

Answer 9

Minutes of directors’ meeting

Question 10

Transfer of shares (balances shareholders’ accounts share ledger)

Answer 10

Review the balances on shareholders’ accounts in the register of members and the total list with amount of issued share capital in the general ledger