he audit engagement team for Dandelion Company (

Dandelion or the

"Company") is in the

planning stages of performing risk assessment procedures

related to

the investment account

balance. The team

ha

s prepared a memo

randum

documenting its

preliminary understanding of

the investment account balance as of the close of Q3 (as of September

30,

20Y2) in order

to plan

its approach for the year

-end audit (as of

December 31, 20Y2). An excerpt of this risk

assessment memo

randum

is presented

in Handout 1.

Note that

an

Appendix has been included to provide

students with a good overall

understanding of the different types of securities listed in this case, an explanation of fair

value, and descriptions of the fair value hierarchy (

Levels 1, 2, and 3). Any student who

is unfamiliar with these terms should read the

Appendix

before

reading

Handout 1.

Required

1.

Read Handout 1 and discuss what you learned about Dandelion and its investments

.