Know The Facts That The Auditor Should Assure While Reviewing The Unclaimed Dividend Capital
The Auditor must view the complete list of the shareholders before actually proceeding to check with the fund provisions. Further, he should identify and learn more about the share investors who have not opted for the dividend claim while the dividend is prepared. In addition to this,
- The Auditor should ensure that there are no errors encountered while settling the respective bank accounts and also with that of the Member’s register. He must compare the name list with this particular register to know the actual number of shares that the share investors own and if this is recorded fairly in the Share Register. By doing so, the real matter gets disclosed if the dividend payment is already done to the party and that he has transferred his shares but still he has not capitulated his dividend warrant.
- It is also advisable to note the statutory period limit and if it gets over than three years, then the corresponding fund in the unclaimed dividend account automatically goes to the Central Government with the shareholder’s information who have not claimed for the dividend amount.
The Unclaimed Dividends also accompanies with the Calls in Arrears and therefore, checking this is equally vital. Therefore, the Auditor should
- Distinguish if these calls in arrears are occurring due regard to the fund issued in the current year or are happening on account of the previous year’s issuing strategy.
- Further, if the problem is on account of the cash distributed during the year, then ascertain if the true amount has been transferred by referring to the application form. Right from the application form along with the share dealings to the calls made and received for the same cash will be charged. For examining all these, the Auditor must certainly conduct the share allotment type of Audit to reach the relevant point.
- If there still exist arrears from the earlier years, then it should be checked if periodic reminders have been sent to the respective share investors for due to the payment of calls. However, if the Director’s Board decides to charge an interest amount all such calls in arrears, make sure they had already made a reminder that requests the shareholders to pay the specific calls in arrears with their corresponding interest value. Also, ensure these calls received during the period of interest payment are further received as interest payment calls.