A company had excess funds at the beginning of 2021. The investment committee decided to purchase marketable securities, the sale and acquisition of investments were delegated to a certain company official. The best person to make periodic reviews of the investments activity would be the: The investment committee Chief operating officer Treasurer Corporate controller
1. A company had excess funds at the beginning of 2021. The investment committee decided to purchase marketable securities, the sale and acquisition of investments were delegated to a certain company official. The best person to make periodic reviews of the investments activity would be the:
The investment committee
Chief operating officer
Treasurer
Corporate controller
2. During the auditor's risk assessment procedures, a meeting was held together with
the company's management. During the meeting, management has discussed that
the company recently acquired bond securities from various government agencies
and publicly listed shares. In light of this, the audit senior asked the management
about the company's investment policy, risk appetite and investment objectives. The
audit senior's inquiry would most likely address which assertion?
Rights and obligations
Occurence
Completeness
Valuation
3. The company holds bonds. The responsibility of the collection of interest and
principal should be delegated to:
The internal auditor
Cashier
Treasurer
Accounting supervisor
4. The treasury department maintains the custody over the company's investments.
Both the accounting and treasury maintain its own records over investments. During
the company's month end procedures, the person that should reconcile the
investment records and the actual securities on hand should be:
The investment committee
An independent person in the treasury department
An independent person in the accounting department
The accounting staff recording investment transactions
5. You were assigned to audit the bond investments of JIHUZ company. The company
maintains the records and custody of its certificates, thus you have decided to
conduct a count of securities to test the existence assertion. You have asked that a person from JIHUZ company should accompany you during the count. Why is this
important?
To detect fraudulent securities
So that the company representative may assist you during the count
To acknowledge any variances during the inspection.
So that the inspection of securities will be conducted in an efficient manner
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