Investment securities You are engaged in the audit of financial statements of Bass Corporation for the year ended December 31 and you are about to begin an audit of the investments securities. Bass records indicate that the company owns various bearer bonds as well as the 25 percent of the outstanding common stocks of Commercial Industrial INC. all securities in Bass’s portfolio are actively traded in a bond market. You are satisfied with evidence that supports the presumption of significant influence over commercial industrial inc. the various securities are at two locations as follows: 1. Recently acquired securities are in the company’s safe in the custody of the treasurer. 2. All other securities are in the company’s bank safe deposit box. Required: a. Assuming that the internal controls over securities are satisfactory, what are the objectives (specific assertions) for the audit of the held-to-maturity securities? b. What audit procedures should you undertake with respect to obtaining audit evidence for the existence and cost valuation of Bass’s securities in the held-to-maturity classification? c. What audit procedures should you undertake with respect to obtaining audit evidence against Bass’s investment in Commercial Industrial Inc.? d. What audit procedures should you undertake with respect to obtaining audit evidence about the classification of held-to-maturity securities in the Bass portfolio? e. Suppose that the held-to-maturity portfolio (excluding the investment in Commercial Industrial Inc.) is carried at cost in the amount of $3,450,000. What audit procedures should you undertake with respect to obtaining audit evidence about the fair market value of this portfolio? f. Suppose that the auditors determine that the held-to-maturity portfolio (excluding the investment in Commercial Industrial Inc.) has an aggregate fair market value of $2,970,000. What audit procedures should they undertake with respect to obtaining audit evidence regarding a value impairment that might be “other than temporary”?