You are auditing the financial statements of Bass Corporation for the year ended December 31, and you

Question:

You are auditing the of Bass for the year ended December 31, and you are about to begin an audit of the noncurrent investment securities. Bass’s records indicate that the company owns various bearer bonds, as well as 25% of the outstanding common shares of Commercial Industrial Inc. You are satisfied with evidence supporting the presumption of significant influence over Commercial. The various securities are at two locations as follows:
a. Recently acquired securities are in the company’s safe in the custody of the treasurer.
b. All other securities are in a bank safety deposit box. All securities in Bass’s are actively traded in a broad market.

Required:
a. Assuming that the system of internal control over securities is satisfactory, what are the objectives (specific assertions) for the audit of the noncurrent securities?
b. What audit procedures should you undertake with respect to the audit of Bass’s investment securities?

Financial Statements
Financial statements are the standardized formats to present the financial information related to a business or an organization for its users. Financial statements contain the historical information as well as current period’s financial... Corporation
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... Portfolio
A portfolio is a grouping of financial assets such as stocks, bonds, commodities, currencies and cash equivalents, as well as their fund counterparts, including mutual, exchange-traded and closed funds. A portfolio can also consist of non-publicly...