In performing risk assessment procedures for investments, an auditor may inquire of the client personnel which of the following questions?

Q: Give examples of substantive proceduresin the finance and investment cycleand relate them to…

A: Finance and Investment Cycle: The cycle consists majorly of the activities that are concerned with…

Q: . Among the financial ratios learned, what is the best ratio in understanding and monitoring the…

A: A financial ratio is used to compare a company's financial situation or output to that of other…

Q: describe the use of fi nancial statement analysis in screening for potential equityinvestments;

A: Financial statement analysis refers analysis of income statement, balance sheet, cash flows and…

Q: Do we record unrealized gain or loss as a debit or a credit balance when making the fair value…

A: Financial accounting records all the financial transactions occurred during the accounting period.…

Q: Is it necessary for an investor to report individual amounts for the three categories of…

A: Held-to-maturity security: The debt securities which are held by the investor with an intent to hold…

Q: Which of the following inputs provides the least subjective (i.e., most objective, requiring no…

A: Valuing financial investments is the process of determining the current worth or fair market value…

Q: What are the pros and cons of investing into the following assets? Make comparison. a. A unit trust…

A: Unit trust investments invest in a range of individual securities. There will be a systematic risk…

Q: When comparing fi nancial statements prepared under IFRS with those prepared underUS GAAP, analysts…

A: IFRS and US GAAP follows similar accounting policies when it comes to realized losses and unrealized…

Q: Entities desiring to issue equity or debt must provide a set of financial statements to any…

A: Corporation:   The form of business entity ,which is incorporated by state law into a separate…

Q: In performing risk assessment procedures for investments, an auditor may inquire of the client…

A: The question is related to risk assessment in respect of Investments.

Q: "The valuation of real estate is based on a cobination of facts, assumptions and judgement"…

A: Investment Valuation is a method which has been adopted by the company or the investor to value the…

Q: How does the accounting for investments vary according to the type of investment (i.e., negotiable…

A: The accounting treatment regarding the investment plans depends upon which investment has been…

Q: k that could happen during the fixed asset acquisition process and how such risks could impact the…

A: Designated members of management should be assigned responsibility for authorizing the purchase of…

Q: profitability ratio

A: Gross profit ratio and net profit ratio are two major profitability ratios.

Q: io analysis involves calculations that use the data from the financial statements to evaluate the…

A: Ratios are very important in financial statement analysis and ratios are calculated based on the…

Q: Where can authoritative IFRS be found related to investments?

A: International Financial Reporting Standards (IFRS):   International Financial Reporting Standards is…

Q: Which of the following is the least acceptable measurement for a provision?   a. average of a given…

A: Solution: The least acceptable measurement for a provision is "actual settlement amount known after…

Q: When calculating a client’s net worth always use the sentiment value of each asset and the full, or…

A: Net worth refers to being calculated by deducting the liabilities from the value of assets which is…

Q: 1.In accordance with CFA standard V(B), in preparing a research report involving securities, the…

A: Both questions relate to CFA (Chartered Financial Analyst) standards V(B) and VI(A), which set forth…

Q: Could the accountant be sure that all dividends due on the client's marketable securities have been…

A: Dividends are the amount received by the shareholder on the shares held by the investor…

Q: Discuss the need for reformulating financial statements in preparation for valuation

A: Financial statement analysis gives information about a company's financial situation and…

Q: Identify transaction belonging to Investing Activities O a. Interest received O b. Marketable…

A: The cash flow statement is prepared to record the cash flow from various activities during the…

Q: What are the key factors that can lead to an under/overstatement of the investments balance?

A: Answer: There can always be under statement or overstatement of the investment balances.

Q: Assume you were trying to decide when to stop or cease within an investment (which has been…

A: Deciding when to conclude an ongoing investment demands a strategic and multidimensional approach.…

Q: Could the accountant be sure that all dividends due on the client's marketable securities have been…

A: Dividends: This is the amount of cash distributed to stockholders by a company from its earnings in…

Q: Does the Diversification require regular evaluating the assetsand realigning the investment mix?…

A: As an investor, the main objective of investment is to maximize return on investment. An investment…

Q: What is the importance of each assertion in the audit of investments?

A: SOLUTION- IN THE AUDIT FOR INVESTMENTS , THE INHERENT RISK OF INVESTMENTS INVOLVE MORE ON THE…

Q: What are some advantages of matching the maturities of claims against assets with the lives of…

A: Whenever something is going to give benefit in future, it is known as asset. The amount which is…

Q: Conservatism means: a)not underestimating asset values, when faced with uncertainty about the value…

A: Accounting principles means the fundamental upon which the whole accounting is based. Every entity…

Q: Under Qualitative Characteristics of Useful Financial Information, which of the following is a…

A: Answer:   Option d.

Q: In the audit of bond investments classified as FA @ amortized cost, the auditor must consider that…

A: As per the amortization method, the investment is recognized at fair value, and interest is accrued…

Q: In many financial statements audits, auditing financial investments involves complex tasks requiring…

A: The audit evaluates the adequacy and quality of financial investment reporting.