My client got the actuarial report from independent professional for leave encashment and for grautity. So as an auditor is there any need to verify that or can we rely on the report. I hope u got it. pls do the need ful as early as possible
28 July 2009
You may rely on the report obtained by the Company from the independent professional actuary. However, to be on the safer side, you may verify the escalation rates taken the valuer and those actually existent in the Company.
The Company might take a lower salary growth rate to have lower provision. Also do verify the interest rates on the funds taken for calculating the interest earned on the fund.
CAclubindia
