I have got a work of auditing the Gratuity fund of a company. The company invests its gratuity fund in another investment company and does not have its own trust. My question is whether such an audit can be done or not? if yes, how can i proceed with it?
if you have allotted for audit of gratuity fund of a company then you can proceed for it .. only keep in mind regarding proper documentation of such audit which is related to such fund and also receive audit engagement letter from the company . if you get any adverse response then you can not accept it.
Gratuity fund is a lump sum payment made by a company to the employee in time of his/her retirement. We perform audit on this fund where there is funded gratuity fund with a separate trustee board and a separate accounts is prepared to confirm if the client is adhering to its agreements.