Loose-leaf For Auditing & Assurance Services: A Systematic Approach
Loose-leaf For Auditing & Assurance Services: A Systematic Approach
11th Edition
ISBN: 9781260687637
Author: William F Messier Jr, Steven M Glover Associate Professor, Douglas F Prawitt Associate Professor
Publisher: McGraw-Hill Education
Question
Book Icon
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.

Blurred answer
Students have asked these similar questions
Please don't use hand rating
"Dividend paying stocks cannot be growth stocks" Do you agree or disagree? Discuss choosing two stocks to help justify your view.
"Dividend paying stocks cannot be growth stocks" Do you agree or disagree? Discuss choosing two stocks to help justify your view.
Knowledge Booster
Background pattern image
Similar questions
SEE MORE QUESTIONS
Recommended textbooks for you
Text book image
Auditing: A Risk Based-Approach (MindTap Course L...
Accounting
ISBN:9781337619455
Author:Karla M Johnstone, Audrey A. Gramling, Larry E. Rittenberg
Publisher:Cengage Learning