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 investmentsecurities.           j. Evaluate client’sprocedures on assessingimpairment ofinvestments.           k. Perform cut-off test onacquisition and disposalof investments andaccruals of interests anddividends.           Requirement: Check the management assertions that are being validated by the above substantive auditprocedures.

An auditor's primary substantive procedures for investments typically include confirmation of securities or evidence of ownership that are held by the client or by a third party. Which of the following assertion(s) is(are) addressed by the audit procedure previously mentioned? *   A. I only     B. I and V only     C. II and V only     D. I and VII only

Which of the following audit objectives is to validate the assertion of valuation and allocation? *   A. All recorded investments on the statement of financial position exist     B. All recorded income from investments has accrued to the entity at the reporting date     C. All investments owned by the entity at the reporting date are included on the statement of financial position and all income accruing from investments has been recorded     D. Investments are included on the statement of financial position at appropriate amounts

An auditor's primary substantive procedures for investments typically include impairment testing. Which of the following assertion(s) is(are) addressed by the audit procedure previously mentioned? *   A. III only     B. IV only     C. III and IV     D. IV, V and VIII

Financial audit Q&A What is the inspection activities to ensure the shipping or Destination Point in the recording of the financial statements is correct in accordance with the fragments?