Bee Corporation€™s partial balance sheet includes the following information:

REQUIRED
a. Design two audit procedures to test existence related to the above investments for Bee€™s 2012 financial statements.
b. Design two audit procedures to test authorization related to the above investments for Bee€™s 2012 financial statements.
c. Assuming the company€™s share transactions are handled by a transfer agent, explain two important facts that the auditor would need to confirm or verify with the transfer agent for the 2012 audit.

2012 2011 Long-term investments Shares and negotiable securities Shareholders' equity Common shares $400,000 $40,000 10,000,000 issued 8,000,000 outstanding $16,000,000 December 31, 2011 $12,000,000 6,000,000 outstanding-$1,000,000 6,000,000 December 31, 2012 Contributed capital