The audit of the share transfer is not compulsory under the ordinance act. However at times the auditor is asked to undertake this work with the objectives to ensure that there has been no error or fraud in the office of the sectary and that duplicate shares have not been issued, except in genuine cases only where the original ones were lost. The following procedure should be adopted in carrying out the shares transfer audit of limited company.
• Examine the articles of the association in respect of the procedure to be followed with regard to the transfer of shares and ensure that the requirements were followed.
• See that the company sent notices of transfers to the transferors in the case of transfers lodged by the transferees as law in respect of these transfers which were lodged by the transferees and were in respect of partly paid shares.
• .
• Ascertain that the transfer fee as prescribed by the articles of association was received and accounted for in the books.
• See that the transfer deed was properly stamped. The transfers must be checked with the member register.
• Verify the signature of the transferer with the signature on the application form.
So this is the audit of the share transfers.
• Examine the articles of the association in respect of the procedure to be followed with regard to the transfer of shares and ensure that the requirements were followed.
• See that the company sent notices of transfers to the transferors in the case of transfers lodged by the transferees as law in respect of these transfers which were lodged by the transferees and were in respect of partly paid shares.
• .
• Ascertain that the transfer fee as prescribed by the articles of association was received and accounted for in the books.
• See that the transfer deed was properly stamped. The transfers must be checked with the member register.
• Verify the signature of the transferer with the signature on the application form.
So this is the audit of the share transfers.