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if the asset in under lien or mortagage…..of receivable is given on factor….what will be the procedures to verify ownership…nd who hold the owner ship of asset…client company or the other party..i;e bank etc..
It might depend on what country you are talking about. In the UK, a mortgage on a property means that the borrower still own the property and would be the owner registered with the land registry (a government body that keeps track of who owns which property), but also noted there would be, for example, any bank who had a charge/mortgage on the property.
A charge/mortgage does not mean that ownership has altered, but the property could not be sold without the lender’s permission and the lender can sell the property if the loan isn’t being paid as it should. Inspection of the land register gives information on both the owner and the mortgagee (lender).
so in this case if auditor is verifying the completeness assertion of assets under mortagage…the only relevance is that …the disclosure should clearly state that asset is under mortagage or lien..etc..? and it should mention the mortagee..
No. Completeness (for property) implies that you have included all the property non-current assets whether or not there is a charge or mortgage. The mortgage/charge relates to the rights and obligations assertion.
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