Question
All of the following are true with respect to the finance and investment cycle except: (A.) Existence is a primary assertion related to investments and
All of the following are true with respect to the finance and investment cycle except:
(A.) Existence is a primary assertion related to investments and the risk that management or other may misappropriate investments is mitigated by board review of broker transactions and use of lock boxes.
(B). Occurrence is a primary assertion related to investment income and auditors can perform substantive tests by analytical review.
(C). The most efficient way for auditors to perform substantive test of other than temporary impairments on investment securities is by performing analytical reviews.
(D). Hedge accounting, which is often engaged in to offset risk in changing interest rates, adverse currency movements, rising material costs, and matching income and expense, can be audited by using management representation letters
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