Question

The dividend received should be vouched from the following supporting documents
(1)_________ of Dividend Warrants, (ii)________ - for deposits in Bank Account​

Answer 1

Answer:

Income from Dividend: While vouching dividends received for the shares held by the client, the auditor should check dividend warrant, ...

Answer 2

Answer:

1) Verification of Dividend Warrants.

2) Covering letter for verification of dividends. - for deposits in bank account.

Explanation:

• a) For dividends received by a check, a verification of the dividend option letter and a cover letter of the dividend verification.
• b) Verification of bank statements when dividends are credited directly to the bank account.
• c) Interest on collateral can be documented from the list of securities.

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