Indicate where management assertions are being validated by the below substantive audit procedures. Existence/ Occurrence (E/O) Rights & obligations (R/O) Completeness (C) Valuation and allocation/Accuracy (V/A) Presentation & disclosure (P/D) a. Inspect securities on hand and confirm securities held by custodian. b. Trace serial number indicated in the security to the list of investment securities maintained by the client. c. The investment securities listed on the schedule of investment transactions of the client are mathematically accurate and agree with the general ledger. d. Read minutes of meeting of board of directors regarding investments used as collateral for borrowings. e. Recalculate gains and losses on sale of securities. f. Recalculate interest and dividend revenues. g. Inspect securities simultaneously with count of other liquid assets. h. Verify fair values of securities with published price quotations. i. Obtain an understanding on management’s process in classifying investment securities. j. Evaluate client’s procedures on assessing impairment of investments. k. Perform cut-off test on acquisition and disposal of investments and accruals of inte
Requirement:
Indicate where management assertions are being validated by the below substantive audit
procedures.
Existence/
Occurrence
(E/O)
Rights &
obligations
(R/O)
Completeness
(C)
Valuation and
allocation/Accuracy
(V/A)
Presentation
& disclosure
(P/D)
a. Inspect securities on hand
and confirm securities
held by custodian.
b. Trace serial number
indicated in the security
to the list of investment
securities maintained by
the client.
c. The investment securities
listed on the schedule of
investment transactions
of the client are
mathematically accurate
and agree with the
general ledger.
d. Read minutes of meeting
of board of directors
regarding investments
used as collateral for
borrowings.
e. Recalculate gains and
losses on sale of
securities.
f. Recalculate interest and
dividend revenues.
g. Inspect securities
simultaneously with count
of other liquid assets.
h. Verify fair values of
securities with published
price quotations.
i. Obtain an understanding
on management’s process
in classifying investment
securities.
j. Evaluate client’s
procedures on assessing
impairment of
investments.
k. Perform cut-off test on
acquisition and disposal
of investments and
accruals of inte
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