the important thing is to be considered while doing reduction of share capital audit, firstly to check the reserves by which the capital is reduced i.e. the way of reducing the capital is as per the provisions, means the provisions of the various acts are complied with or not, if not then it is desirable to be remarked in the audit report, the another thing is to check the liquidity of the company i.e. the company having the proper liquidity or not, one thing is that about the consent of the stakeholders, is it properly taken, the reserves are properly maintained, these things cant be ignored while auditing as such......