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 2016 financial statements.
b. Design two audit procedures to test authorization related to the above investments for Bee's 2016 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 2016 audit.

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2016 2015 Long-term investments Shares and negotiable $400 000 $40 000 securities Shareholders' equity Common shares 10 000 000 issued 8 000 000 outstanding- December 31,2015 6 000 000 outstanding- December 31,2016 Contributed capital $16 000 000 $12 000 000 1 000 000 $6000 000