[Illustrative Checklist] for Verification of Items of Investments to be Followed by the Auditor

 ​    The audit of investments is … Continue reading “[Illustrative Checklist] for Verification of Items of Investments to be Followed by the Auditor”
The post [Illustrative Checklist] for Verification of Items of Investments to be Followed by the Auditor appeared first on Taxmann Blog. 

The audit of investments is an important aspect of the audit of financial statements. The main objective of the auditor is to confirm the existence and valuation of investments. The auditor can verify investments through various procedures, including transaction verification, physical inspection, examination of valuation and disclosure, and analytical review procedures. However, the nature, timing, and extent of audit procedures to be performed depend on the auditor’s professional judgment. Investments can take various forms, such as government securities, shares, debentures, immovable properties, and others. In the following, we will discuss the audit procedure for verifying investments, focusing on investments in the form of shares, debentures, and other securities. To perform audit duties, auditors use various procedures for verifying investments, investments in the form of shares, debentures, and other securities such as examining records and performing analytical procedures. To ensure that no significant investment is overlooked, auditors often use a checklist of items. In this context, we have discussed a checklist for auditors to verify items of investment.

I. Has the auditor ensured that the investments made by the entity are within its authority

II. Has the auditor confirmed that the investments made by the entity are not ultra vires the entity

III. Has the auditor reviewed any covenants or conditions that restrict, qualify or abridge the right of ownership and/or disposal of investments

IV. Did the auditor verify that the transactions for the purchase/sale of investments are supported by due authority and documentation

V. Did the auditor examine the offer to the entity contained in the letter of rights in the case of a rights issue

VI. Did the auditor examine the intimation to the entity regarding the issue of bonus shares

Click Here to Read Full Checklist

The post [Illustrative Checklist] for Verification of Items of Investments to be Followed by the Auditor appeared first on Taxmann Blog.

 News Archives – Taxmann Blog Read More 

Leave a Reply