Question
a) Which substantive tests gather evidence related to the existence assertion for investment balances? (Several choices may be correct.) Determine that balances are properly identified
a) Which substantive tests gather evidence related to the existence assertion for investment balances? (Several choices may be correct.)
Determine that balances are properly identified and classified in the financial statements.
Confirm securities held by others.
Trace opening balances to the previous year's working papers.
Vouch entries in the investment and related income and equity accounts.
Perform analytical procedures by analyzing interest and dividend yields relative to expectations.
b). Which substantive tests gather evidence related to the valuation assertion for investment balances? (Several choices may be correct.)
Recalculate investment revenue earned.
Vouch entries in the investment and related income and equity accounts.
Confirm securities held by others.
Determine that balances are properly identified and classified in the financial statements.
Trace opening balances to the previous year's working papers.
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started