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
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
Subject: auditing and assurance concepts and applications
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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
Processes by which a company's financial record is compared against accounting standards and principles to confirm the records' accuracy and compliance.
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