Items

(a) through

(f) represent audit objectives for the investments and property and equipment accounts. To the right of each set of audit objectives is a listing of possible audit procedures for that account. For each audit objective, select the audit procedure that would primarily respond to the objective. Select only one procedure for each audit objective. A procedure may be selected only once, or not at all.

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Audit Objectives for Investments a. Investments are properly described and classified in the financial statements. b. Recorded investments rep- resent investments actually owned at the balance sheet date. c. Investments are properly valued at the lower of cost or market at the balance sheet date. Audit Procedures for Investments 1. Trace opening balances in the subsidiary ledger to prior year's audit working papers. 2. Determine that employees who are authorized to sell investments do not have access to cash. 3. Examine supporting docu- ments for a sample of investment transactions to verify that prenumbered documents are used. 4. Determine that any impair- ments in the price of investments have been properly recorded.