Tuesday, 8 November 2011

Discuss the various kinds or classes of investigation also discuss the main objects of investigation

Following are the important kinds of investigation :

1. Investigation for the purchase of a business.

2. Investigation for preparing report.

3. Investigation for credit purpose.

4. Investigation for investment.

5. Investigation for the detection of fraud.

6. Investigation for incoming partner.


1. Detection Of Concealed Income :-
To detect the undisclosed income investigation is made on behalf of income tax authorities for the tax liabilities.

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.

3. Credit Purpose :-
Sometimes bank or client wants to grant the loan to a business. So investigation is made on his behalf to know the financial position of the firm.

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.

6. Doubt Of fraud :-
If proprietor of a business is doubtful about the real position of the business, investigation may be conducted on his behalf.

7. Business Removal :-
In case of a compulsory removal of business, investigation is conducted to find out the amount of compensation payable.

8. Case Of Misappropriation :-
On behalf of the beneficiaries investigation may be conducted where the trustees are suspected of fraud or misappropriation.

9. Auditors Negligence :-
If there is a charge of negligence on auditor then investigation may be conducted on behalf of the company or any person.

10. Misfeasance Or Fraud :-
If auditors are suspected of fraud or misfeasance investigation may be conducted on the behalf of the company's liquidator.

11. Insurance Claims :-
Investigation may be conducted for claims under insurance policy covering the losses.

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.

15. Business Promotions :-
Promotion of business may be the object of investigation. The investigator can guide management for the promotion of sale and business activity.


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