Audit procedure is a method performed by the auditor, to gather the possible document that helps the auditors to make a strong conclusion. The audit procedure helps to determine the nature of the financial information provided by the customers and all kinds of risks that occur in the financial statements. Audit procedure performs different test of controls to avoid the risks. To discuss: The appropriate audit procedure for the selected assertions. Correct match of selected assertion with the audit procedure is mentioned below: Specific Assertion Audit Procedure a) Verify that investment are properly described and classified in the financial statement (Presentation and disclosure-classification) The auditor needs to develop an audit procedure to check that is transferred from the current to the noncurrent investment portfolio, that have been properly recorded. b) Verify that recorded investments represent investment actually owned at the balance sheet date (rights and obligations.) In this assertion, the auditor needs to obtain positive confirmations of the balance sheet date of investment held by independent custodians. c) Verify that investment are properly valued at the lower of cost or market at the balance sheet date (valuation and allocation) Out of the audit procedures , the auditor should determine that the impairment in the price of the investment portfolio has been properly recorded.

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Answer 1

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Definition Definition Financial statement that provides a snapshot of an organization's financial position at a specific point in time. It summarizes a company's assets, liabilities, and shareholder's equity, detailing what the company owns, what it owes, and what is left over for its owners. The balance sheet serves as a crucial tool to assess the financial health and stability of a company, as well as to help management make informed decisions about its future investments and financial obligations.

Chapter 16, Problem 16.29P

To determine

Concept Introduction:

Audit procedure is a method performed by the auditor, to gather the possible document that helps the auditors to make a strong conclusion. The audit procedure helps to determine the nature of the financial information provided by the customers and all kinds of risks that occur in the financial statements. Audit procedure performs different test of controls to avoid the risks.

To discuss: The appropriate audit procedure for the selected assertions.

Correct match of selected assertion with the audit procedure is mentioned below:

Specific Assertion Audit Procedure
a) Verify that investment are properly described and classified in the financial statement (Presentation and disclosure-classification) The auditor needs to develop an audit procedure to check that is transferred from the current to the noncurrent investment portfolio, that have been properly recorded.
b) Verify that recorded investments represent investment actually owned at the balance sheet date (rights and obligations.) In this assertion, the auditor needs to obtain positive confirmations of the balance sheet date of investment held by independent custodians.
c) Verify that investment are properly valued at the lower of cost or market at the balance sheet date (valuation and allocation) Out of the audit procedures, the auditor should determine that the impairment in the price of the investment portfolio has been properly recorded.

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Answer 2

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Definition Definition Financial statement that provides a snapshot of an organization's financial position at a specific point in time. It summarizes a company's assets, liabilities, and shareholder's equity, detailing what the company owns, what it owes, and what is left over for its owners. The balance sheet serves as a crucial tool to assess the financial health and stability of a company, as well as to help management make informed decisions about its future investments and financial obligations.

Chapter 16, Problem 16.29P

To determine

Concept Introduction:

Audit procedure is a method performed by the auditor, to gather the possible document that helps the auditors to make a strong conclusion. The audit procedure helps to determine the nature of the financial information provided by the customers and all kinds of risks that occur in the financial statements. Audit procedure performs different test of controls to avoid the risks.

To discuss: The appropriate audit procedure for the selected assertions.

Correct match of selected assertion with the audit procedure is mentioned below:

Specific Assertion Audit Procedure
a) Verify that investment are properly described and classified in the financial statement (Presentation and disclosure-classification) The auditor needs to develop an audit procedure to check that is transferred from the current to the noncurrent investment portfolio, that have been properly recorded.
b) Verify that recorded investments represent investment actually owned at the balance sheet date (rights and obligations.) In this assertion, the auditor needs to obtain positive confirmations of the balance sheet date of investment held by independent custodians.
c) Verify that investment are properly valued at the lower of cost or market at the balance sheet date (valuation and allocation) Out of the audit procedures, the auditor should determine that the impairment in the price of the investment portfolio has been properly recorded.

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Answer 3

Question

Definition Definition Financial statement that provides a snapshot of an organization's financial position at a specific point in time. It summarizes a company's assets, liabilities, and shareholder's equity, detailing what the company owns, what it owes, and what is left over for its owners. The balance sheet serves as a crucial tool to assess the financial health and stability of a company, as well as to help management make informed decisions about its future investments and financial obligations.

Chapter 16, Problem 16.29P

To determine

Concept Introduction:

Audit procedure is a method performed by the auditor, to gather the possible document that helps the auditors to make a strong conclusion. The audit procedure helps to determine the nature of the financial information provided by the customers and all kinds of risks that occur in the financial statements. Audit procedure performs different test of controls to avoid the risks.

To discuss: The appropriate audit procedure for the selected assertions.

Correct match of selected assertion with the audit procedure is mentioned below:

Specific Assertion Audit Procedure
a) Verify that investment are properly described and classified in the financial statement (Presentation and disclosure-classification) The auditor needs to develop an audit procedure to check that is transferred from the current to the noncurrent investment portfolio, that have been properly recorded.
b) Verify that recorded investments represent investment actually owned at the balance sheet date (rights and obligations.) In this assertion, the auditor needs to obtain positive confirmations of the balance sheet date of investment held by independent custodians.
c) Verify that investment are properly valued at the lower of cost or market at the balance sheet date (valuation and allocation) Out of the audit procedures, the auditor should determine that the impairment in the price of the investment portfolio has been properly recorded.

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Answer 4

Question

Definition Definition Financial statement that provides a snapshot of an organization's financial position at a specific point in time. It summarizes a company's assets, liabilities, and shareholder's equity, detailing what the company owns, what it owes, and what is left over for its owners. The balance sheet serves as a crucial tool to assess the financial health and stability of a company, as well as to help management make informed decisions about its future investments and financial obligations.

Chapter 16, Problem 16.29P

To determine

Concept Introduction:

Audit procedure is a method performed by the auditor, to gather the possible document that helps the auditors to make a strong conclusion. The audit procedure helps to determine the nature of the financial information provided by the customers and all kinds of risks that occur in the financial statements. Audit procedure performs different test of controls to avoid the risks.

To discuss: The appropriate audit procedure for the selected assertions.

Correct match of selected assertion with the audit procedure is mentioned below:

Specific Assertion Audit Procedure
a) Verify that investment are properly described and classified in the financial statement (Presentation and disclosure-classification) The auditor needs to develop an audit procedure to check that is transferred from the current to the noncurrent investment portfolio, that have been properly recorded.
b) Verify that recorded investments represent investment actually owned at the balance sheet date (rights and obligations.) In this assertion, the auditor needs to obtain positive confirmations of the balance sheet date of investment held by independent custodians.
c) Verify that investment are properly valued at the lower of cost or market at the balance sheet date (valuation and allocation) Out of the audit procedures, the auditor should determine that the impairment in the price of the investment portfolio has been properly recorded.

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Answer 5

Chapter 16, Problem 16.29P

To determine

Concept Introduction:

Audit procedure is a method performed by the auditor, to gather the possible document that helps the auditors to make a strong conclusion. The audit procedure helps to determine the nature of the financial information provided by the customers and all kinds of risks that occur in the financial statements. Audit procedure performs different test of controls to avoid the risks.

To discuss: The appropriate audit procedure for the selected assertions.

Correct match of selected assertion with the audit procedure is mentioned below:

Specific Assertion Audit Procedure
a) Verify that investment are properly described and classified in the financial statement (Presentation and disclosure-classification) The auditor needs to develop an audit procedure to check that is transferred from the current to the noncurrent investment portfolio, that have been properly recorded.
b) Verify that recorded investments represent investment actually owned at the balance sheet date (rights and obligations.) In this assertion, the auditor needs to obtain positive confirmations of the balance sheet date of investment held by independent custodians.
c) Verify that investment are properly valued at the lower of cost or market at the balance sheet date (valuation and allocation) Out of the audit procedures, the auditor should determine that the impairment in the price of the investment portfolio has been properly recorded.

Answer 6

Chapter 16, Problem 16.29P

To determine

Concept Introduction:

Audit procedure is a method performed by the auditor, to gather the possible document that helps the auditors to make a strong conclusion. The audit procedure helps to determine the nature of the financial information provided by the customers and all kinds of risks that occur in the financial statements. Audit procedure performs different test of controls to avoid the risks.

To discuss: The appropriate audit procedure for the selected assertions.

Correct match of selected assertion with the audit procedure is mentioned below:

Specific Assertion Audit Procedure
a) Verify that investment are properly described and classified in the financial statement (Presentation and disclosure-classification) The auditor needs to develop an audit procedure to check that is transferred from the current to the noncurrent investment portfolio, that have been properly recorded.
b) Verify that recorded investments represent investment actually owned at the balance sheet date (rights and obligations.) In this assertion, the auditor needs to obtain positive confirmations of the balance sheet date of investment held by independent custodians.
c) Verify that investment are properly valued at the lower of cost or market at the balance sheet date (valuation and allocation) Out of the audit procedures, the auditor should determine that the impairment in the price of the investment portfolio has been properly recorded.

Answer 7

Chapter 16, Problem 16.29P

To determine

Concept Introduction:

Audit procedure is a method performed by the auditor, to gather the possible document that helps the auditors to make a strong conclusion. The audit procedure helps to determine the nature of the financial information provided by the customers and all kinds of risks that occur in the financial statements. Audit procedure performs different test of controls to avoid the risks.

To discuss: The appropriate audit procedure for the selected assertions.

Correct match of selected assertion with the audit procedure is mentioned below:

Specific Assertion Audit Procedure
a) Verify that investment are properly described and classified in the financial statement (Presentation and disclosure-classification) The auditor needs to develop an audit procedure to check that is transferred from the current to the noncurrent investment portfolio, that have been properly recorded.
b) Verify that recorded investments represent investment actually owned at the balance sheet date (rights and obligations.) In this assertion, the auditor needs to obtain positive confirmations of the balance sheet date of investment held by independent custodians.
c) Verify that investment are properly valued at the lower of cost or market at the balance sheet date (valuation and allocation) Out of the audit procedures, the auditor should determine that the impairment in the price of the investment portfolio has been properly recorded.

Answer 8

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Answer 9

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Answer 10

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Answer 11

Ch. 16 - Prob. 16.1RQ Ch. 16 - Prob. 16.2RQ Ch. 16 - Prob. 16.3RQ Ch. 16 - Prob. 16.4RQ Ch. 16 - Prob. 16.5RQ Ch. 16 - Prob. 16.6RQ Ch. 16 - Prob. 16.7RQ Ch. 16 - Prob. 16.8RQ Ch. 16 - Prob. 16.9RQ Ch. 16 - Prob. 16.10RQ

Solution Summary: The author explains the audit procedure to determine the nature of financial information provided by the customers and all kinds of risks that occur in the financial statements.

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Chapter 16 Solutions

	Specific Assertion	Audit Procedure
a)	Verify that investment are properly described and classified in the financial statement (Presentation and disclosure-classification)	The auditor needs to develop an audit procedure to check that is transferred from the current to the noncurrent investment portfolio, that have been properly recorded.
b)	Verify that recorded investments represent investment actually owned at the balance sheet date (rights and obligations.)	In this assertion, the auditor needs to obtain positive confirmations of the balance sheet date of investment held by independent custodians.
c)	Verify that investment are properly valued at the lower of cost or market at the balance sheet date (valuation and allocation)	Out of the audit procedures, the auditor should determine that the impairment in the price of the investment portfolio has been properly recorded.