Question. 38 chapter. 3 write a short note on a \’matters that the auditor may consider when obtaining an understanding of the nature of the entity\’..answer. investments activities ka last point. .financial activities all points..plz sir explain. revised adition april 2016 usme ye quation diya hai..page no. 3.37

Questions › Category: SA-315 › Question. 38 chapter. 3 write a short note on a \’matters that the auditor may consider when obtaining an understanding of the nature of the entity\’..answer. investments activities ka last point. .financial activities all points..plz sir explain. revised adition april 2016 usme ye quation diya hai..page no. 3.37

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Ashish Patel asked 7 years ago

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Ravi Staff answered 7 years ago

Investment ka last time, some times company invest money in partnership firms, trust or other type of companies, but as per AS or Law it is not required to included their balance sheet in consolidated financial statements of group, so auditor should take good understanding of such investments, to understand whether longterm / short term risky not risky etc

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Ravi Staff answered 7 years ago

in financial points they are explaining understand existing subsidiaries which are consolidated, off balance sheet financing meas (eg giving loan name of lease etc) , derivative instruments are financial instruments which are risky