Director is someone given the power to supervise day to day operation of the entity.
The following are substantive procedures for auditing director’s emoluments:
- Obtain schedule of emolument paid to directors during the year and agree with financial statement disclosure
- Inspect minutes of board of directors to ensure there are no undisclosed bonuses or other remuneration
- Inspect bank statement to verify actual amount paid to directors
- Review tax return of directors to ensure these agree with emolument as per listing.
- Develop an expectation of the current year director’s emolument to ensure emolument in the account is complete
- Obtain written representation from directors that they have disclosed all directors’ remuneration and related party transaction to the auditor.