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  • Case A: Preliminaries (Guide Questions) : Working Paper On Investments

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    The document discusses an audit of a company's investments. It provides three guide questions: 1) when auditors would accept confirmation of securities from a custodian instead of inspecting them, 2) how auditors can determine all dividends have been received, and 3) when securities may not be on hand at the balance sheet date. It then presents a summary schedule of the company's bonds, bills, shares, and total investments as of December 31, 2020, found during the year-end financial audit.

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    WORKING PAPER ON INVESTMENTS.pdf

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    The document discusses an audit of a company's investments. It provides three guide questions: 1) when auditors would accept confirmation of securities from a custodian instead of inspecting them, 2) how auditors can determine all dividends have been received, and 3) when securities may not be on hand at the balance sheet date. It then presents a summary schedule of the company's bonds, bills, shares, and total investments as of December 31, 2020, found during the year-end financial audit.

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    6 views1 page

    Case A: Preliminaries (Guide Questions) : Working Paper On Investments

    Uploaded by

    gerry
    The document discusses an audit of a company's investments. It provides three guide questions: 1) when auditors would accept confirmation of securities from a custodian instead of inspecting them, 2) how auditors can determine all dividends have been received, and 3) when securities may not be on hand at the balance sheet date. It then presents a summary schedule of the company's bonds, bills, shares, and total investments as of December 31, 2020, found during the year-end financial audit.

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    WORKING PAPER ON INVESTMENTS

    CASE A: PRELIMINARIES (GUIDE QUESTIONS)

    . (1) Under what conditions would CPAs accept a confirmation of the


    securities in the possession of a custodian in lieu of inspecting the
    securities themselves?

    . (2) How can the auditors determine that all dividends applicable to
    marketable securities owned by the client have been received and
    recorded?

    . (3) Under what circumstances may securities owned by the client not
    be on hand at the balance sheet date?

    CASE A: PRESENTATION

    In your audit of JKL Company’s investments, you were provided with the
    summary schedule below as of December 31, 2020:

    10% XYZ 5-year Co. Bonds (face amount of ₱500,000) 15% Avento
    Bonds (face amount of ₱500,000) 6% Juliana Bonds (face amount of
    ₱300,000) Government Treasury Bills

    Money Market Placement DXL Shares (10,000 shares, cost ₱720,000)


    JKL Shares (20,000 shares, cost ₱130,000) Total

    Based on your year-end financial audit, you found the following


    information:

    ₱ 450,000 530,000 280,000 350,000 600,000 750,000 200,000


    ₱3,160,000

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