Question

valuation is the base of
a) verification
b) vouching
c) marketing
d) all of the above​

Answer 1

Answer:

The correct answer of this is d) all the above.

Explanation:

Valuation is an important part of asset verification. Despite the fact that an auditor is not a valuer, he must use reasonable care and skill to ensure that the assets have been valued correctly in accordance with accounting principles and recognised professional practises.

The value of an asset is certified by valuation. After the original entry in the books of accounts, vouching is done. At the end of the fiscal year, verification and valuation are completed.

Vouching assists an auditor in detecting frauds and confirming the legitimacy of transactions by examining all documentary evidence. Look for transactions that have gone missing. Vouching also aids in the discovery of any missing or unrecorded transactions in the books for which a voucher is located.

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Answer 2

Answer:

The correct answer is d) all the above.

Explanation:

• Asset verification includes a valuation as a key component. Even if an auditor does not do valuations, he is nonetheless required to use reasonable care and skill to ensure that the assets have been evaluated accurately in line with accounting principles and accepted professional standards.
• The valuation process verifies an asset's worth. Vouching is completed after the first entry in the books of accounts. The completion of verification and valuation occurs at the conclusion of the fiscal year.
• By reviewing all documentation evidence, vouching for aids an auditor in spotting frauds and determining the authenticity of transactions. Search for transactions that have disappeared. By vouching, any missing or unrecorded transactions in the books for which a voucher is found can be found
• A basis of value is a description of the fundamental measuring assumptions that go into a valuation, and these standards specify the basis (or bases) of value that are acceptable for many typical valuation applications.
• For both assets and liabilities, valuations are carried out for a variety of reasons. For merger and acquisition negotiations, capital budgeting, investment analysis, litigation purposes, and financial reporting, it may be necessary to value an asset.

conclusion:

The technique of valuation analysis is used to determine the rough value or worth of any item, including businesses, stocks, fixed-income securities, commodities, real estate, and other assets.