Required information Ch10 Controls Related to Financial Investments (LO10-9, LO10-10) Controls Related to Financial Investments Read the overview below and complete the activities that follow. Adequate internal control over financial investments is an important process for clients holding these investments. Auditors need to be sure they understand and assess these controls CONCEPT REVIEW: Financial investments can result in very complex audit procedures and often require auditors with specific skills and knowledge. Often specialists are brought in to per the substantive procedures, but most auditors are able to assess and understand the controls relevant to financial investments. Part 1 - Drag and Drop Match the listed internal controls procedures with their objectives. Inspect monthly brokerage reports on securities owned, purchased, and sold Trace several transactions for purchases and sales of investments through the accounting system Inspect reports by internal auditors on their review of securities and derivatives Review and test reports of investment activity for the investment committee Ensure transactions are recorded and classified properly Ensure policies written are being followed Verify that internal auditors' observations are consistent with those of external auditors Ensure reports tie to client activity Reset