The client prepared the following worksheet listing all activities in the marketable securities account for the year
Question:
The client prepared the following worksheet listing all activities in the marketable securities account for the year under audit. For purposes of this question, you may assume that there are no unusual securities except the note from XYNO Corporation (a related party) and a note from Allis-Chalmers Corporation (a customer).Assume also that control risk was assessed as moderate to high, and that the auditor decides to concentrate on direct tests of the account balance. The account balances at the beginning and end of the year per the company’s trial balance are as follows:
Required
Identify the audit steps needed to complete the audit of marketable securities for year end. You may assume that the client was audited by the same firm lastyear.
A Corporation is a legal form of business that is separate from its owner. In other words, a corporation is a business or organization formed by a group of people, and its right and liabilities separate from those of the individuals involved. It may...
Step by Step Answer:
Auditing a business risk appraoch
ISBN: 978-0324375589
6th Edition
Authors: larry e. rittenberg, bradley j. schwieger, karla m. johnston