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The issue of security througha number of processes .once the SEC has commented to interest on the registration statement and a preliminary prospectus has been distributed to interest invetors,the investment bankers organizeroad shows and undertake book building in the process. Required: Explain the meaning and two [2]purposes of road showa as used in the preamble above.
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- Requirement: Indicate where management assertions are being validated by the below substantive auditprocedures. Existence/Occurrence(E/O) Rights &obligations(R/O) Completeness(C) Valuation andallocation/Accuracy(V/A) Presentation& disclosure(P/D) a. Inspect securities on handand confirm securitiesheld by custodian.b. Trace serial numberindicated in the securityto the list of investmentsecurities maintained bythe client.c. The investment securitieslisted on the schedule ofinvestment transactionsof the client aremathematically accurateand agree with thegeneral ledger.d. Read minutes of meetingof board of directorsregarding investmentsused as collateral forborrowings.e. Recalculate gains andlosses on sale ofsecurities.f. Recalculate interest anddividend revenues.g. Inspect securitiessimultaneously with countof other liquid assets.h. Verify fair values ofsecurities with publishedprice quotations.i. Obtain an understandingon management’s processin classifying…Substantive audit procedures Existence/Occurrence(E/O) Rights &obligations(R/O) Completeness(C) Valuation andallocation/Accuracy(V/A) Presentation& disclosure(P/D) a. Inspect securities on handand confirm securitiesheld by custodian. b. Trace serial numberindicated in the securityto the list of investmentsecurities maintained bythe client c. The investment securitieslisted on the schedule ofinvestment transactionsof the client aremathematically accurateand agree with thegeneral ledger. d. Read minutes of meetingof board of directorsregarding investmentsused as collateral forborrowings. e. Recalculate gains andlosses on sale ofsecurities. f. Recalculate interest anddividend revenues. g. Inspect securitiessimultaneously with countof other liquid assets. h. Verify fair values ofsecurities with publishedprice quotations. i. Obtain an understandingon management’s processin classifying…MC Qu. 41-05 Which of the following describes... Which of the following describes a prospectus? Multiple Choice A prospectus is an oral promise that assures the buyer of the veracity of the information in the registration statement. A prospectus an advertising tool that issuers distribute to potential investors. A prospectus is a document that describes the securities offered for sale and the SEC's approval of those securities. A prospectus is a collection of all of the company's financial documents. APR 27 A AW rave X
- 1.In accordance with CFA standard V(B), in preparing a research report involving securities, the members and candidates must:A.present the basis characteristics(general principles of the investment of the investment process used-such as risk and return related issues) B.Include all factors that are relevant including any significant limitations and risks associated with the investment and/or decision-making process. C.All the options listed. D.Provide regular updates to any important changes to the securities(prices, risks.etc) 2. In accordance with CFA standard VI(A), a member must: A.Disclose all actual and perceived conflicts of interest when it is convenient to ensure no loss of income. B.Use their professional judgement and disclose conflicts of interest if the monetary value exceeds 300. C.Disclose all actual and perceived conflicts of interest before assisting the client or employer. D.Use their professional judgement and only disclose actual conflicts of interest.RISK-BASED AUDIT PROCESS Direction: discuss the process of auditing the following transactions/accounts:• Revenues• Rehabilitation bondsdiscuss the process of auditing the followingtransactions/accounts: • Revenue Recognition• Property and Equipment• Leaseses
- RISK-BASED AUDIT PROCESS Direction: discuss the process of auditing the following transactions/accounts:• Inventories• Property, plant, and equipment (PPE)• Renewal and reconditioning costs• Revenues• Rehabilitation bondsAudit Objectives and Procedures for Investments. In the audit of investment securities, auditors develop specific audit assertions related to the investments. They then design specific substantive procedures to obtain evidence about each of these assertions. Following is a selection of investment securities assertions:1. Investments are properly described and classified in the financial statements.2. Recorded investments represent investments actually owned at the balance-sheet date.3. Investments are properly valued at the balance-sheet date.Required:For each of these assertions, select the following audit procedure that is best suited for the audit plan. Select only one procedure for each assertion. A procedure may be selected once or not at all. a. Trace opening balances in the general ledger to prior-year audit documentation.b. Determine whether employees who are authorized to sell investments have access to cash.c. Examine supporting documents for a sample of investment…explain the process of auditing the followingtransactions/accounts below. • Revenues• Rehabilitation bonds
- In performing risk assessment procedures for investments, an auditor may inquire of the client personnel which of the following questions? A. Is there independent review of investments measured at fair value based on market valuation? B. Is investment income independently recalculated? C. All of the choices D. Are investment records periodically reconciled to actual listing of investments (example: per count ot investment custodian statement)?In performing risk assessment procedures for investments, an auditor may inquire of the client personnel which of the following questions? Group of answer choices 4. All of the choices 1. Is investment income independently recalculated? 2. Are investment records periodically reconciled to actual listing of investments (i.e., per count or investment custodian statement)? 3.Is there independent review of investments measured at fair value based on market valuation?15. In performing risk assessment procedures for investments, an auditor may inquire of the client personnel which of the following questions? Group of answer choices Is there independent review of investments measured at fair value based on market valuation? Is investment income independently recalculated? All of the choices Are investment records periodically reconciled to actual listing of investments (i.e., per count or investment custodian statement)?