Gold Ornaments and Bullion
The auditor may inspect and weigh (on a test basis) the ornaments on the closing date. He should also see the assayer’s certificate regarding the net gold content of the ornaments and their valuation. Valuation should also be checked with reference to the current market price of gold. In context to the valuation, attention is also invited to the valuation norms as given in the RBI circular no. DBOD.No.BP.BC.27/21.04.048/2014-15 on “Loans against Gold Ornaments and Jewellery for Non-Agricultural End-uses” dated July 22, 2014.
In respect of gold and silver bars, the auditor should inspect the bars on a test basis and see that the mint seals are intact. The weights mentioned on the bars may generally be accepted as correct.