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INVESTIGATION
INVESTIGATION
INVESTIGATION
INVESTIGATION - DEFINITION
Investigation refers to a systemic and in-depth examination or inquiry to
establish a fact or evaluate a particular situation (such as whistle-blower
complaints and so on). The Investigation covers core areas of financing
decisions, investment decisions, fraud or profitability or cost
determination, conflict of interests, etc.
DIFFERENCE BETWEEN AUDIT AND INVESTIGATION
The investigator should be aware of the risks and objective of the case
before deciding to place reliance on the work done by third parties such
audited financial statements, internal audit reports, due diligence
reports, management representation letters etc. The investigation report
should contain in clear terms, the scope of reliance on the work done by
others.
3. Requirement of an expert in the investigation
OBJECTS OF INVESTIGATION :-
2. Purchase Of Business :- Some times any one person or firm wants to purchase
the business. So ti know the financial position and earning capacity of the business
investigation is made on the behalf of the purchasers.
4. Entry Of New Partner :- A new man who wants to enter into the business he will
also try to know the financial condition of the business. Investigation can also can
be made on the behalf of the incoming partner.
5. Purchase Of Shares :- If any client wants to purchase the shares of the company,
investigation can be conducted on his behalf to know the real position of the
company.
12. Merger :- Investigation object may be merger of two or more than two
organizations. The rights of shareholders in all can be protected on the basis of
investigation reports.
13. Taxation :- Investigation object may be the tax justification. To determine the
income tax investigation can be made by the income tax department.
14. Investment Decision :- Before investing the capital investor may investigate
into the business matters for making decisions to buy or not to by the shares.