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Audit substantive procedures for directors emoluments.

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.

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