investigation

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INVESTIGATION

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“An investigation is a special audit for some special purpose”.

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“The term investigation implies an examination of accounts and records for some special purpose”. – Spencer and Pegler .

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“Investigation involves inquiry into facts behinds the books of accounts into the technical , financial , and the economic position of the business organization.”–Taylor and Perry.”

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POINT TO BE NOTED WHILE CONDUCTING AN INVESTIGATION

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1. Information regarding the scope of work.

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2. The objects of investigation to be ascertained

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3. The report of the auditor to be obtained .

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4. Preservation of working papers .

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5. Unbiased and impartial opinion to be given .

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6. RECORD OF EXPLAINATION AND ACCOUNTS .

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8. DRAFTING OF REPORT ON INVESTIGATION .

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REPORT OF INVESTIGATION

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1. CAREFUL DRAFTING

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2. REPORT TO BE PREPARED EXPENDITOUSLY .

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3. REFERENCE TO THE DETAILS OF WORKS NOT ENTRUSTED TO HIM .

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4. TIMELY PRESENTAION OF THE REPORT.

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5. CLARITY AND UNAMBIGUITY IN THE REPORT .

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6. FIGURES TO BE GIVEN IN SUPPORT OF CONCLUSION.

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VARIOUS KINDS OF INVESTIGATION 1. Investigation on behalf of an intending purchaser of business 2. Investigation on behalf of a creditor or a bank granting loans, 3. Investigation in case of suspected fraud. 4. Investigation in case of considerable fluctuations in profit.