State the conditions that the auditor should verify which must be complied with for valid issue of such shares under the Companies Act, 2013.

As per Section 54 of the Companies Act, 2013 the auditor needs to verify that the following conditions have been complied with: (I) the issue is authorized by a special resolution passed by the company; (II) the resolution specifies the number of shares, the current market price, consideration, if any, and the class or classes of directors or employees to whom such equity shares are to be issued; (III) where the equity shares of the company are listed on a recognised stock exchange, the sweat equity shares are issued in accordance with the regulations made by the Securities and Exchange Board in this behalf and if they are not so listed, the sweat equity shares are issued in accordance with such rules as may be prescribed. (IV) the Sweat Equity Shares issued by the company are of a class of shares already issued by them.