Miteshmitesh asked 1 year ago

whether so much of assets of the company as consists of shares debs and other securities- what does it mean in above question

3 Answers
RaviRavi Staff answered 1 year ago

auditor has to see selling price of assets in the for of shares / debentures and other securities
that means investments in the form of financial assets such as shares / debentures / other securities 
that also means auditor is not suppose to selling price of other investments / assets such as investment in property, art work etc 

Miteshmitesh answered 1 year ago

selling price of securities should not be less than purchase price but it can be less than market price .
Is this the interpretation ?
 

RaviRavi Staff answered 1 year ago

auditor has to see whether selling price was less than cost if it is less than cost then he will investigate whether something wrong was done like purposefully sold securities at low price to related parties so that company faces losses and related parties gain
if he wants adverse findings he will report
but is selling happens at lower price because of market movements or it is justified no reporting will be done
point is he has to evaluate and comment on deals where sale is below cost

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