Audit of investments

Audit of Investments:

• Internal control evaluation
• Physical verification
• Verification of transactions
• Examination of valuation or Disclosures
• Analytical procedures
• Management representations
• Documentation by the Auditor

Any other suggestions/explanations are most welcome!

Regards

Can some one please explain in detail..any help is much appreciated

Regards

Dear Rohan,

Generally the following points should be kept in mind while examining the investments of a company...

- such investments should be held in the name of company

- statements of such investments should be checked as on 31st Mar, whether balance matched with books of account or not..

- any income or interest accrued on such investment is accounted for or not..

- further to be checked whether such investment has been provided further as secuity or gurantee, if yes, then whether business purpose or personal..

- whether such investment is beneficial for business or it is just blocking the funds of business..

- whether investments are quoted or unquoted for disclosure purpose

- determine the NAV of all the investments held as on balance sheet date

- if the investment has been made in the related party concern, then it should be disclosed separately..

Further there may be more points depending upon the nature & type of investments...

Hope it will help you...!!!!

Dear Vikram

Thanks a lot for all the valuable points! 

I am sure Experts/members will come up with additional points as well!

Regards

Refer below for guidence on how to verify

https://www.caalley.com/gn/invtmts.html

I recommend you to please do refer guidence note on revised schedule VI to know about how to disclose in financial statements