You can follow the following points to verify the purchase of quoted investments in your client's books.

• Ascertain the date of purchase, rate of purchase, nature of investments purchased and nature of transaction, i.e., error cum-dividend/ interest/right/bonus.
• Compare the rate of purchase with quotation available. Obtain suitable explanations in case of significant variations.
• Verify the amount paid towards purchase of investments.
• Trace the amount in the cheque book counterfoils and bank statements.
• Obtain a schedule of investment from Management for physical verification at the year end.
• Verify the investment certificate to confirm title.
• Confirm compliance with statutory provisions such as 143(1) of the Companies Act, 2013.
• Verify whether investments are duly disclosed in financial statements in accordance with recognized accounting policies and practices and relevant statutory requirements.