Verification of the amount is made daily by the auditor

Yes

Verification of the amount is a process carried out by auditors to ensure that the financial statements of a company accurately represent the true financial position. The purpose of this verification is to confirm that the amounts recorded in the company's books and records are valid and supported by evidence.

To verify the amount, auditors typically follow these steps:

1. Plan the audit: The auditor determines the scope and objectives of the audit, including which accounts and transactions need to be verified.

2. Collect evidence: The auditor collects relevant documentary evidence such as invoices, receipts, bank statements, contracts, and other supporting documents.

3. Analyze the evidence: The auditor examines the collected evidence to determine its validity and reliability. They may cross-check information with external sources or conduct interviews with relevant parties to verify the accuracy of the recorded amounts.

4. Perform testing procedures: Auditors perform various testing procedures, such as reconciliation, confirmation, and physical inspection, to ensure that the recorded amounts match the actual amounts.

5. Reconcile accounts: The auditor compares the account balances in the company's financial statements with the corresponding balances in supporting documents or external records. Any discrepancies are investigated and resolved.

6. Report findings: After completing the verification process, the auditor prepares a report summarizing their findings. This report highlights any material misstatements or discrepancies in the recorded amounts and provides recommendations for improvement if necessary.

It is important for auditors to perform verification on a daily basis to ensure the accuracy and reliability of financial information. Daily verification helps identify any discrepancies early on, allowing for timely corrective actions to be taken. Additionally, regular verification promotes transparency and accountability within the organization.