Difference Between Verification And Valuation– Hello friends, today we are going to share difference between Valuation and Verification. There are five difference between the both, which are given below such as meaning, advice, by whom, guarantee or responsibility and evidence.
Difference Between Verification And Valuation
|1||Meaning||Verification Verification means clarifying the existence, valuation, existing obligations and accuracy of the items stated in the Balance Sheet.||Valuation Valuation involves a critical examination of the pre-determined values of the assets by the auditor on the basis of accounting principles and conventions.|
|2||Advice||The assets are verified by the auditor himself.||The auditor can obtain the help of an expert for the valuation of assets.|
|3||By Whom||Verification is done by the auditor himself or his senior partner.||Valuation is done by the management of an organisation but the accuracy of this valuation is done by the auditor.|
|4||Guarantee Or Responsibility||The auditor is responsible for the verification of assets.||The auditor cannot give a guarantee for the valuation of assets as determined by the expert.|
|5||Evidence||Adequate physical and documentary evidence is available for verification.||Very little actual proof is available for valuation therefore the auditor has to rely to a very large extent on the estimates of the management.|
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