You are the auditor in char of investments, you have just been given the following list of securities held by Circle Corporation at December 31, 20X3. CIRCLE CORPORATION Schedule of Marketable Securities December 31, 20X3
You are the auditor in char of investments, you have just been given the following list of securities held by Circle Corporation at December 31, 20X3. CIRCLE CORPORATION Schedule of Marketable Securities December 31, 20X3
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
Related questions
Question
Subject:
![234
Chapter 7
Exercise 2
You are the auditor in charge of the audit of Circle Corporation. In the audit
of investments, you have just been given the following list of securities held
by Circle Corporation at December 31, 20X3.
CIRCLE CORPORATION
Schedule of Marketable Securities
December 31, 20X3
10,000 shares of Diamond Corp.
6,000 shares of Square Corp.
8,000 shares of Rectangle Corporation
400 Line Corporation 7.5% Convertible Bonds
Market Value December 31
P599,100
216,500
(not publicly traded)
555,000
Required:
1. Identify the potential audit problems that may be indicated by the
schedule.
2. To value the shares of Rectangle Corporation, management has
employed a securities valuation firm. Explain the audit considerations
involved in auditing the value developed by the valuation firm.
Exercise 3](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2Fe60e7591-b003-4f78-8f30-3449c3113fc2%2F092fb55f-bd80-40bb-b1d5-bf2e5ef1cf38%2Fqx89947_processed.jpeg&w=3840&q=75)
Transcribed Image Text:234
Chapter 7
Exercise 2
You are the auditor in charge of the audit of Circle Corporation. In the audit
of investments, you have just been given the following list of securities held
by Circle Corporation at December 31, 20X3.
CIRCLE CORPORATION
Schedule of Marketable Securities
December 31, 20X3
10,000 shares of Diamond Corp.
6,000 shares of Square Corp.
8,000 shares of Rectangle Corporation
400 Line Corporation 7.5% Convertible Bonds
Market Value December 31
P599,100
216,500
(not publicly traded)
555,000
Required:
1. Identify the potential audit problems that may be indicated by the
schedule.
2. To value the shares of Rectangle Corporation, management has
employed a securities valuation firm. Explain the audit considerations
involved in auditing the value developed by the valuation firm.
Exercise 3
Expert Solution
![](/static/compass_v2/shared-icons/check-mark.png)
This question has been solved!
Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.
This is a popular solution!
Trending now
This is a popular solution!
Step by step
Solved in 2 steps
![Blurred answer](/static/compass_v2/solution-images/blurred-answer.jpg)
Knowledge Booster
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.Recommended textbooks for you
![FINANCIAL ACCOUNTING](https://compass-isbn-assets.s3.amazonaws.com/isbn_cover_images/9781259964947/9781259964947_smallCoverImage.jpg)
![Accounting](https://www.bartleby.com/isbn_cover_images/9781337272094/9781337272094_smallCoverImage.gif)
Accounting
Accounting
ISBN:
9781337272094
Author:
WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:
Cengage Learning,
![Accounting Information Systems](https://www.bartleby.com/isbn_cover_images/9781337619202/9781337619202_smallCoverImage.gif)
Accounting Information Systems
Accounting
ISBN:
9781337619202
Author:
Hall, James A.
Publisher:
Cengage Learning,
![FINANCIAL ACCOUNTING](https://compass-isbn-assets.s3.amazonaws.com/isbn_cover_images/9781259964947/9781259964947_smallCoverImage.jpg)
![Accounting](https://www.bartleby.com/isbn_cover_images/9781337272094/9781337272094_smallCoverImage.gif)
Accounting
Accounting
ISBN:
9781337272094
Author:
WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:
Cengage Learning,
![Accounting Information Systems](https://www.bartleby.com/isbn_cover_images/9781337619202/9781337619202_smallCoverImage.gif)
Accounting Information Systems
Accounting
ISBN:
9781337619202
Author:
Hall, James A.
Publisher:
Cengage Learning,
![Horngren's Cost Accounting: A Managerial Emphasis…](https://www.bartleby.com/isbn_cover_images/9780134475585/9780134475585_smallCoverImage.gif)
Horngren's Cost Accounting: A Managerial Emphasis…
Accounting
ISBN:
9780134475585
Author:
Srikant M. Datar, Madhav V. Rajan
Publisher:
PEARSON
![Intermediate Accounting](https://www.bartleby.com/isbn_cover_images/9781259722660/9781259722660_smallCoverImage.gif)
Intermediate Accounting
Accounting
ISBN:
9781259722660
Author:
J. David Spiceland, Mark W. Nelson, Wayne M Thomas
Publisher:
McGraw-Hill Education
![Financial and Managerial Accounting](https://www.bartleby.com/isbn_cover_images/9781259726705/9781259726705_smallCoverImage.gif)
Financial and Managerial Accounting
Accounting
ISBN:
9781259726705
Author:
John J Wild, Ken W. Shaw, Barbara Chiappetta Fundamental Accounting Principles
Publisher:
McGraw-Hill Education