Audit of Drawing Power (DP) w.r.t Working Capital

Ajay Srinivasan (3 Points)

25 August 2022  

Whenever we are auditing drawing power w.r.t working capital loans, we calculate it based on quarterly statements submitted  by the company to banks. My question is how to verify the figures mentioned in such quarterly statements with books?

Also, what is the resolution if discrepancies arise between the values as per books & quarterly statements?