year qyded September 30 . After obtaining an undersanding of Vernosit internal control system. Phung set control risk at the maximum level for alt finascial statement askertions concerning investments. Phang determined that Vernon is unable to extreise. rignificant inflatnce over any imventee and none afe related partite. Phane obcained from Vernon detailed analyses of its investments is domertic securities showing: - The classification among held-tomafarity, tradiag, and avaitablefar- kale securities. - A deseription of each security, including the interes rate and maturity date of bonds and the por value and dividend rate of atocks, - A notation of tbe location of each security, either in the treasurer's safe or beld by an indejendent custodian. - The namber of shates of stock or foce value of bonds beld at the bepinnitig and end of the year. - The bekinning asd ending balances at cost and at market, asd the anamortized premitim or descount on bonds - Additions to asd sales from the portfolios for the year, including date, number of thates, face value of bonds, cost. proceeds, and realized gein of loss - Valuaiian allowances at the beginning and end of the year and chanees thereif - Accrued iavestment inconse for each mrestinent at the berinning and thit of the year, and income earned and collected during the year