Jillian is on the Gotham City Defense Company’s audit with Andrew but has been assigned the task performing tests of details of balances for the investment account. She has never audited investments before and asks Andrew for some advice. Andrew tells her that she needs to review which management assertions are relevant for the investment account. Then she needs to understand appropriate tests that will provide evidence on these assertions.

Required:
a. What are management’s key assertions over the investment accounts?
b. How can Jillian utilize inspection in the tests of details of balances for investments? How can she utilize confirmations? What evidence will these audit procedures provide for the financial statement audit?