MC Qu. 41-05 Which of the following describes...Which of the following describes a prospectus?Multiple ChoiceA prospectus is an oral promise that assures the buyer of the veracity of the information in the registrationstatement.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.APR27< Prev 5 of 25tvIItNext >AAWraveX

Introduction: Prospectus- Any company wishing to offer equity or bond for sale to the public must…

Answered: MC Qu. 41-05 Which of the following…

Auditing: A Risk Based-Approach (MindTap Course List)

11th Edition

ISBN:9781337619455

Author:Karla M Johnstone, Audrey A. Gramling, Larry E. Rittenberg

Publisher:Karla M Johnstone, Audrey A. Gramling, Larry E. Rittenberg

Chapter10: Auditing Cash, Marketable Securities, And Complex Financial Instruments

Section: Chapter Questions

Problem 28RQSC

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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.
In discussing how to value and report investment securities, your text also talks about trading securities, available-for-sale securities, and held-to-maturity securities. Briefly describe these securities and state how they are each valued and reported? Also be brief and to the point.
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…
Explanation The margin requirement is set by the b. SEC (SecuritiesanExch
1. Statement 1: Financial securities are instruments that can be transferred or sold easily through established financial markets. Statement 2: Financial securities uses physical certificates that sellers (holders) need to seek the approval and signature of the is suer to be transferred to the buyer. Statement 3: Financial securities are tradeable through established market or over-the counter. Statement 4: Financial securities hold monetary value or face value that is equivalent to their selling price. Statement 5: Financial securities are fumgible that can be converted into assets or cash. a.All statements are true b.Statements 1,2 and3 are true c.Statements 2, 3 and 4 are true d.Statements 3,4 and 5 are true e. Statements 1, 3 and5 are true f. Statements 2, 4 and 5 are true 2. Statement 1: Debt securities represent ownership in a firm that would entitle the holders certain dividends and claims in a firm. Statement 2: Equity securities are loans made by the issuing firm that…
Audit 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…
1. Statement 1: Financial securities are instruments that can be transferred or sold easily through established financial markets. Statement 2: Financial securities uses physical certificates that sellers (holders) need to seek the approval and signature of the issuer to be transferred to the buyer. Statement 3: Financial securities are tradeable through established market or over-the counter. Statement 4: Financial securities hold monetary value or face value that is equivalent to their selling price. Statement 5: Financial securities are fungible that can be converted into assets or cash. a. All statements are true b. Statements 1, 2 and 3 c. Statements 2, 3 and 4 are true are true d. Statements 3, 4 and 5 e. Statements 1, 3 and 5 are true f. Statements 2, 4 and 5 are true are true
1. Statement 1: Financial securities are instruments that can be transferred or sold easily throughestablished financial markets.Statement 2: Financial securities uses physical certificates that sellers (holders) need to seek theapproval and signature of the issuer to be transferred to the buyer.Statement 3: Financial securities are tradeable through established market or over-the counter.Statement 4: Financial securities hold monetary value or face value that is equivalent to their sellingprice.Statement 5: Financial securities are fungible that can be converted into assets or cash.a.All statements are true b.Statements 1, 2 and 3 are true c.Statements 2, 3 and 4 are trued.Statements 3, 4 and 5 are true e.Statements 1, 3 and 5 are true f. Statements 2, 4 and 5 are true 2. Statement 1: Debt securities represent ownership in a firm that would entitle the holders certaindividends and claims in a firm.Statement 2: Equity securities are loans made by the issuing firm that would entitle the…
. Select the correct label for each line and fill in the amount. In classifying the investments, choose a categorization which seems most likely, given the pattern of transactions in the journal entries. Enter all amounts as positive numbers. If an amount box does not require an entry, leave it blank. Trading Securities $fill in the blank 73dda2069024015_2 fill in the blank 73dda2069024015_4 $fill in the blank 73dda2069024015_6 Available-For-Sale Securities $fill in the blank 73dda2069024015_8 fill in the blank 73dda2069024015_10 $fill in the blank 73dda2069024015_12 2. Where on the balance sheet do trading securities appear? . 3. Where on the financial statements do available-for-sale securities NOT appear? . 4. Where are held-to-maturity securities reported? . Based on the journal entries for this year, does the company have any held-to-maturity securities? . 5. Where are securities held for strategic reasons reported on the…
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)?
The underwriter of a securities offering may request that an auditor perform specified procedures and supply certain assurances concerning unaudited information contained in a registration statement. The auditor's response to such a request is commonly called a:
Briefly explain the role of underwriters in the issuance of securities.

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