As part of the investing cycle of an audit client, the auditor will audit the investment securities and related items that the client has recorded in its financial statements. REQUIRED: (1) Discuss the accounting treatment required under current generally accepted accounting principles (GAAP) for investment securities in relation to the following items. Classification of the securities in the financial statements. (a) (b) (c) Valuation of the securities in the financial statements. How investment income and all gains and losses are handled in the financial statements. Provide three substantive audit procedures that the auditor should use to audit investment securities of a client. Be specific as to the procedure to be performed. (2)