In testing the valuation of the company's quoted investments in stocks measured at fair value, the auditor would most likely perform the following: Obtain the market price of the investments in stocks Obtain representation from the management's expert. Send confirmation letter's to the company's trading agent. Engage the auditor's expert.
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In testing the valuation of the company's quoted investments in stocks measured at fair value, the auditor would most likely perform the following:
Obtain the market price of the investments in stocks
Obtain representation from the management's expert.
Send confirmation letter's to the company's trading agent.
Engage the auditor's expert.
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- In testing the valuation of the company's quoted investments in stocks measured at fair value, the auditor would most likely perform the following: Group of answer choices Obtain the market price of the investments in stocks Obtain representation from the management's expert. Send confirmation letter's to the company's trading agent. Engage the auditor's expert.In testing the valuation of the company's quoted investments in stocks measured at fair value, the auditor would most likely perform the following: a. Obtain the market price of the investments in stocks b. Obtain representation from the management's expert. c. Send confirmation letter's to the company's trading agent. d. Engage the auditor's expert.In testing the valuation of the company's quoted investments in stocks measured atfair value, the auditor would most likely perform the following: choices: Obtain the market price of the investments in stocksObtain representation from the management's expert.Send confirmation letter's to the company's trading agent.Engage the auditor's expert
- In testing the valuation of the company's quoted investments in stocks measured at fair value, the auditor would most likely perform the following: Group of answer choices a.Obtain the market price of the investments in stocks b.Obtain representation from the management's expert. c.Send confirmation letter's to the company's trading agent. d.Engage the auditor's expert. 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? a.To detect fraudulent securities b.So that the company representative may assist you during the count c.To acknowledge any variances during the inspection. d.So that the inspection of securities will be conducted in an efficient manner. The treasury department…When auditing an investment in another company, an auditor most likely would seek to conduct which audit procedure to help satisfy the valuation assertion?a. Inspect the stock certificates evidencing the investment.b. Examine the audited financial statements of the investee company.c. Review the broker’s advice or canceled check for the investment’s acquisition.d. Obtain market quotations from The Wall Street Journal or another independent source.When auditing an investment in another company, an auditor most likely would seek to conduct which audit procedure to help satisfy the valuation assertion?a. Inspect the stock certificates evidencing the investment.b. Examine the audited financial statements of the investee company.c. Review the broker’s advice or canceled check for the investment’s acquisition.
- An auditor is establishing procedures for testing management’s assertions regarding existence in relation to reported investments in marketable securities. The auditor is considering using confirmations or observation. Which of these techniques would be appropriate for obtaining evidence about existence? A. Confirmations Only B. Observations Only C. Neither confirmations nor observations D. Both confirmations and observationsIn performing risk assessment procedures for investments, an auditor may inquire of the client personnel which of the following questions? a. Are investment records periodically reconciled to actual listing of investments (i.e., per count or investment custodian statement)? b. Is there independent review of investments measured at fair value based on market valuation? c. Is investment income independently recalculated? d. All of the choicesIn performing risk assessment procedures for investments, an auditor may inquire of the client personnel which of the following questions? A. Is there independent review of investments measured at fair value based on market valuation? B. Is investment income independently recalculated? C. All of the choices D. Are investment records periodically reconciled to actual listing of investments (example: per count ot investment custodian statement)?
- If the auditors discover that the carrying amount of a client’s investments is overstated because of a loss in value that is other than a temporary decline in market value, they should insist thata. The approximate market value of the investments be shown in parentheses on the face of the balance sheet.b. The investments be classified as long term for balance-sheet purposes with full disclosure in the footnotes.c. The loss in value be recognized in the financial statements.d. The equity section of the balance sheet separately show a charge equal to the amount of the loss.During the auditor's risk assessment procedures, a meeting was held together withthe company's management. During the meeting, management has discussed thatthe company recently acquired bond securities from various government agenciesand publicly listed shares. In light of this, the audit senior asked the managementabout the company's investment policy, risk appetite and investment objectives. Theaudit senior's inquiry would most likely address which assertion? choices: Rights and obligationsOccurenceCompletenessValuationAn audit team testing long-term investments would ordinarily use analytical procedures to ascertain the reasonableness of thea. Existence of unrealized gains or losses.b. Completeness of recorded investment income.c. Classification as available-for-sale or trading securities.d. Valuation of trading securities.