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HiI am doing audit of a company. How can I audi...

HiI am doing audit of a company. How can I audit of sale of investment ?

Hi

I am doing audit of a company. How can I audit of sale of investment ?

0
Jeeba Mar. 09, 2018

While conducting an audit of sale of investment, you have to considered following things.

(i) Ensure that sale of investment is made on the authorisation of Board or other competent authority.

(ii) Ascertain the method of selling investments. It may be either through broker, directly or through a bank. See the broker’s sold note.

(iii) Check the difference between the carrying amount and the sales proceeds, net of expenses, is recognised in the Statement of Profit & Loss.

(iv) Ensure that when only a part of the holding of an individual investment is sold, the carrying amount is allocated on the basis of average carrying amount of the total holding of the investments.

(v) See that proper disclosures as required by AS 13 are made as follows:

(1) Interest, dividends, rentals on investments are to be shown in Statement of Profit and Loss at Gross Value and TDS as advance tax paid.

(2) Showing separately profit & Loss on disposal and changes in carrying amount of current and long term investments.

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I am doing audit of a company. How can I audit of sale of investment ?

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