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CPA AUD Flashcards > AUD 3 Internal Control 16 - 2 Operating Cycles - Investing and Financing Cycle > Flashcards

AUD 3 Internal Control 16 - 2 Operating Cycles - Investing and Financing Cycle Flashcards

1
Q

Investing and Financing Cycle

Applying the RACE mnemonic for account balances:

  • Rights and obligations
  • Allocation and Valuation
  • Completeness
  • Existence
A

Investing and Financing Cycle

Applying the RACE mnemonic for account balances:

  • Rights and obligations
  • Allocation and Valuation
  • Completeness
  • Existence
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2
Q

Investing and Financing Cycle

Applying the RACE mnemonic for account balances:

• Rights and obligations
– Management examines investment securities to verify that they are registered in the name of the entity or confirms such with custodians of the investments.

• Allocation and Valuation
– The recorded values of investments are periodically compared to current market prices.

• Completeness
– The investments on hand and held by custodians are periodically reconciled to their recorded amounts.

• Existence
– The entity maintains physical custody of investments in a secure physical location or they are maintained in the custody of a trustee, which can be confirmed.

A

Investing and Financing Cycle

Applying the RACE mnemonic for account balances:

• Rights and obligations
– Management examines investment securities to verify that they are registered in the name of the entity or confirms such with custodians of the investments.

• Allocation and Valuation
– The recorded values of investments are periodically compared to current market prices.

• Completeness
– The investments on hand and held by custodians are periodically reconciled to their recorded amounts.

• Existence
– The entity maintains physical custody of investments in a secure physical location or they are maintained in the custody of a trustee, which can be confirmed.

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3
Q

Investing and Financing Cycle

Applying the RACE mnemonic for account balances:

• R______ and obligations

A

Investing and Financing Cycle

Applying the RACE mnemonic for account balances:

• Rights and obligations

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4
Q

Investing and Financing Cycle

Applying the RACE mnemonic for account balances:

• Rights and o___________

A

Investing and Financing Cycle

Applying the RACE mnemonic for account balances:

• Rights and obligations

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5
Q

Investing and Financing Cycle

Applying the RACE mnemonic for account balances:

• ________ and obligations

A

Investing and Financing Cycle

Applying the RACE mnemonic for account balances:

• Rights and obligations

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6
Q

Investing and Financing Cycle

Applying the RACE mnemonic for account balances:

• Rights and ___________

A

Investing and Financing Cycle

Applying the RACE mnemonic for account balances:

• Rights and obligations

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7
Q

Investing and Financing Cycle

Applying the RACE mnemonic for account balances:

  • Rights and obligations
  • Al________ and Valuation
A

Investing and Financing Cycle

Applying the RACE mnemonic for account balances:

  • Rights and obligations
  • Allocation and Valuation
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8
Q

Investing and Financing Cycle

Applying the RACE mnemonic for account balances:

  • Rights and obligations
  • Allocation and Va________
A

Investing and Financing Cycle

Applying the RACE mnemonic for account balances:

  • Rights and obligations
  • Allocation and Valuation
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9
Q

Investing and Financing Cycle

Applying the RACE mnemonic for account balances:

  • Rights and obligations
  • ___________ and Valuation
A

Investing and Financing Cycle

Applying the RACE mnemonic for account balances:

  • Rights and obligations
  • Allocation and Valuation
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10
Q

Investing and Financing Cycle

Applying the RACE mnemonic for account balances:

  • Rights and obligations
  • Allocation and __________
A

Investing and Financing Cycle

Applying the RACE mnemonic for account balances:

  • Rights and obligations
  • Allocation and Valuation
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11
Q

Investing and Financing Cycle

Applying the RACE mnemonic for account balances:

  • Rights and obligations
  • ___________ and __________
A

Investing and Financing Cycle

Applying the RACE mnemonic for account balances:

  • Rights and obligations
  • Allocation and Valuation
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12
Q

Investing and Financing Cycle

Applying the RACE mnemonic for account balances:

  • Allocation and Valuation
  • Co____________
A

Investing and Financing Cycle

Applying the RACE mnemonic for account balances:

  • Allocation and Valuation
  • Completeness
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13
Q

Investing and Financing Cycle

Applying the RACE mnemonic for account balances:

  • Allocation and Valuation
  • ______________
A

Investing and Financing Cycle

Applying the RACE mnemonic for account balances:

  • Allocation and Valuation
  • Completeness
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14
Q

Investing and Financing Cycle

Applying the RACE mnemonic for account balances:

  • Completeness
  • Ex_______
A

Investing and Financing Cycle

Applying the RACE mnemonic for account balances:

  • Completeness
  • Existence
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15
Q

Investing and Financing Cycle

Applying the RACE mnemonic for account balances:

  • Completeness
  • _________
A

Investing and Financing Cycle

Applying the RACE mnemonic for account balances:

  • Completeness
  • Existence
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16
Q

Investing and Financing Cycle

Applying the RACE mnemonic for account balances:

  • ______ and __________
  • Allocation and Valuation
  • Completeness
  • Existence
A

Investing and Financing Cycle

Applying the RACE mnemonic for account balances:

  • Rights and obligations
  • Allocation and Valuation
  • Completeness
  • Existence
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17
Q

Investing and Financing Cycle

Applying the RACE mnemonic for account balances:

  • Rights and obligations
  • _________ and Valuation
  • Completeness
  • _________
A

Investing and Financing Cycle

Applying the RACE mnemonic for account balances:

  • Rights and obligations
  • Allocation and Valuation
  • Completeness
  • Existence
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18
Q

Investing and Financing Cycle

Applying the RACE mnemonic for account balances:

  • Rights and obligations
  • Allocation and _________
  • _______________
  • Existence
A

Investing and Financing Cycle

Applying the RACE mnemonic for account balances:

  • Rights and obligations
  • Allocation and Valuation
  • Completeness
  • Existence
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19
Q

Investing and Financing Cycle

Applying the RACE mnemonic for account balances:

  • _______ and obligations
  • Allocation and Valuation
  • Completeness
  • _________
A

Investing and Financing Cycle

Applying the RACE mnemonic for account balances:

  • Rights and obligations
  • Allocation and Valuation
  • Completeness
  • Existence
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20
Q

Investing and Financing Cycle

Applying the RACE mnemonic for account balances:

  • Rights and __________
  • _________ and Valuation
  • Completeness
  • Existence
A

Investing and Financing Cycle

Applying the RACE mnemonic for account balances:

  • Rights and obligations
  • Allocation and Valuation
  • Completeness
  • Existence
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21
Q

Investing and Financing Cycle

Applying the RACE mnemonic for account balances:

  • Rights and obligations
  • Allocation and Valuation
  • Completeness
  • Existence

• Rights and obligations
– Management examines investment securities to verify that they are registered in the name of the entity or confirms such with custodians of the investments.

A

Investing and Financing Cycle

Applying the RACE mnemonic for account balances:

  • Rights and obligations
  • Allocation and Valuation
  • Completeness
  • Existence

• Rights and obligations
– Management examines investment securities to verify that they are registered in the name of the entity or confirms such with custodians of the investments.

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22
Q

Investing and Financing Cycle

Applying the RACE mnemonic for account balances:

  • Rights and obligations
  • Allocation and Valuation
  • Completeness
  • Existence

• Rights and obligations

– Ma_________ examines investment securities

A

Investing and Financing Cycle

Applying the RACE mnemonic for account balances:

  • Rights and obligations
  • Allocation and Valuation
  • Completeness
  • Existence

• Rights and obligations

– Management examines investment securities

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23
Q

Investing and Financing Cycle

Applying the RACE mnemonic for account balances:

• Rights and obligations

– Management ex_______s investment securities

A

Investing and Financing Cycle

Applying the RACE mnemonic for account balances:

• Rights and obligations

– Management examines investment securities

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24
Q

Investing and Financing Cycle

Applying the RACE mnemonic for account balances:

• Rights and obligations

– Management examines inve______ securities

A

Investing and Financing Cycle

Applying the RACE mnemonic for account balances:

• Rights and obligations

– Management examines investment securities

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25
Q

Investing and Financing Cycle

Applying the RACE mnemonic for account balances:

• Rights and obligations

– Management examines investment se______ies

A

Investing and Financing Cycle

Applying the RACE mnemonic for account balances:

• Rights and obligations

– Management examines investment securities

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26
Q

Investing and Financing Cycle

Applying the RACE mnemonic for account balances:

• Rights and obligations

– Management examines investment securities

to v____y that they are registered in the name of the entity

A

Investing and Financing Cycle

Applying the RACE mnemonic for account balances:

• Rights and obligations

– Management examines investment securities

to verify that they are registered in the name of the entity

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27
Q

Investing and Financing Cycle

Applying the RACE mnemonic for account balances:

• Rights and obligations

– Management examines investment securities

to verify that they are reg____red in the name of the entity

A

Investing and Financing Cycle

Applying the RACE mnemonic for account balances:

• Rights and obligations

– Management examines investment securities

to verify that they are registered in the name of the entity

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28
Q

Investing and Financing Cycle

Applying the RACE mnemonic for account balances:

• Rights and obligations

– Management examines investment securities

to verify that they are registered in the name of the e____y

A

Investing and Financing Cycle

Applying the RACE mnemonic for account balances:

• Rights and obligations

– Management examines investment securities

to verify that they are registered in the name of the entity

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29
Q

Investing and Financing Cycle

Applying the RACE mnemonic for account balances:

• Rights and obligations

– Management examines investment securities

to verify that they are registered in the name of the entity

or con____s such with custodians of the investments.

A

Investing and Financing Cycle

Applying the RACE mnemonic for account balances:

• Rights and obligations

– Management examines investment securities

to verify that they are registered in the name of the entity

or confirms such with custodians of the investments.

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30
Q

Investing and Financing Cycle

Applying the RACE mnemonic for account balances:

• Rights and obligations

– Management examines investment securities

to verify that they are registered in the name of the entity

or confirms such with cus_____s of the investments.

A

Investing and Financing Cycle

Applying the RACE mnemonic for account balances:

• Rights and obligations

– Management examines investment securities

to verify that they are registered in the name of the entity

or confirms such with custodians of the investments.

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31
Q

Investing and Financing Cycle

Applying the RACE mnemonic for account balances:

• Rights and obligations

– Management examines investment securities

to verify that they are registered in the name of the entity

or confirms such with custodians of the inv________.

A

Investing and Financing Cycle

Applying the RACE mnemonic for account balances:

• Rights and obligations

– Management examines investment securities

to verify that they are registered in the name of the entity

or confirms such with custodians of the investments.

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32
Q

Investing and Financing Cycle

Applying the RACE mnemonic for account balances:

  • Rights and obligations
  • Allocation and Valuation
  • Completeness
  • Existence

• Rights and obligations
– Management examines investment securities to verify that they are registered in the name of the entity or confirms such with custodians of the investments.

• Allocation and Valuation
– The recorded values of investments are periodically compared to current market prices.

A

Investing and Financing Cycle

Applying the RACE mnemonic for account balances:

  • Rights and obligations
  • Allocation and Valuation
  • Completeness
  • Existence

• Rights and obligations
– Management examines investment securities to verify that they are registered in the name of the entity or confirms such with custodians of the investments.

• Allocation and Valuation
– The recorded values of investments are periodically compared to current market prices.

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33
Q

Investing and Financing Cycle

Applying the RACE mnemonic for account balances:

  • Rights and obligations
  • Allocation and Valuation
  • Completeness
  • Existence

• Allocation and Valuation
– The recorded values of investments are periodically compared to current market prices.

A

Investing and Financing Cycle

Applying the RACE mnemonic for account balances:

  • Rights and obligations
  • Allocation and Valuation
  • Completeness
  • Existence

• Allocation and Valuation
– The recorded values of investments are periodically compared to current market prices.

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34
Q

Investing and Financing Cycle

Applying the RACE mnemonic for account balances:

• Allocation and Valuation

– The recorded va___s of investments are periodically compared to current market prices.

A

Investing and Financing Cycle

Applying the RACE mnemonic for account balances:

• Allocation and Valuation

– The recorded values of investments are periodically compared to current market prices.

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35
Q

Investing and Financing Cycle

Applying the RACE mnemonic for account balances:

• Allocation and Valuation

– The re____ed values of investments are periodically compared to current market prices.

A

Investing and Financing Cycle

Applying the RACE mnemonic for account balances:

• Allocation and Valuation

– The recorded values of investments are periodically compared to current market prices.

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36
Q

Investing and Financing Cycle

Applying the RACE mnemonic for account balances:

• Allocation and Valuation

– The recorded values of inv_______s are periodically compared to current market prices.

A

Investing and Financing Cycle

Applying the RACE mnemonic for account balances:

• Allocation and Valuation

– The recorded values of investments are periodically compared to current market prices.

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37
Q

Investing and Financing Cycle

Applying the RACE mnemonic for account balances:

• Allocation and Valuation

– The recorded values of investments are per______lly compared to current market prices.

A

Investing and Financing Cycle

Applying the RACE mnemonic for account balances:

• Allocation and Valuation

– The recorded values of investments are periodically compared to current market prices.

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38
Q

Investing and Financing Cycle

Applying the RACE mnemonic for account balances:

• Allocation and Valuation

– The recorded values of investments are periodically co______ed to current market prices.

A

Investing and Financing Cycle

Applying the RACE mnemonic for account balances:

• Allocation and Valuation

– The recorded values of investments are periodically compared to current market prices.

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39
Q

Investing and Financing Cycle

Applying the RACE mnemonic for account balances:

• Allocation and Valuation

– The recorded values of investments are periodically compared to cur____ market prices.

A

Investing and Financing Cycle

Applying the RACE mnemonic for account balances:

• Allocation and Valuation

– The recorded values of investments are periodically compared to current market prices.

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40
Q

Investing and Financing Cycle

Applying the RACE mnemonic for account balances:

• Allocation and Valuation

– The recorded values of investments are periodically compared to current ma____ prices.

A

Investing and Financing Cycle

Applying the RACE mnemonic for account balances:

• Allocation and Valuation

– The recorded values of investments are periodically compared to current market prices.

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41
Q

Investing and Financing Cycle

Applying the RACE mnemonic for account balances:

• Allocation and Valuation

– The recorded values of investments are periodically compared to current market p____s.

A

Investing and Financing Cycle

Applying the RACE mnemonic for account balances:

• Allocation and Valuation

– The recorded values of investments are periodically compared to current market prices.

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42
Q

Investing and Financing Cycle

Applying the RACE mnemonic for account balances:

  • Rights and obligations
  • Allocation and Valuation
  • Completeness
  • Existence

• Allocation and Valuation
– The recorded values of investments are periodically compared to current market prices.

• Completeness
– The investments on hand and held by custodians are periodically reconciled to their recorded amounts.

A

Investing and Financing Cycle

Applying the RACE mnemonic for account balances:

  • Rights and obligations
  • Allocation and Valuation
  • Completeness
  • Existence

• Allocation and Valuation
– The recorded values of investments are periodically compared to current market prices.

• Completeness
– The investments on hand and held by custodians are periodically reconciled to their recorded amounts.

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43
Q

Investing and Financing Cycle

Applying the RACE mnemonic for account balances:

  • Rights and obligations
  • Allocation and Valuation
  • Completeness
  • Existence

• Completeness

– The investments on hand and held by custodians are periodically reconciled to their recorded amounts.

A

Investing and Financing Cycle

Applying the RACE mnemonic for account balances:

  • Rights and obligations
  • Allocation and Valuation
  • Completeness
  • Existence

• Completeness

– The investments on hand and held by custodians are periodically reconciled to their recorded amounts.

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44
Q

Investing and Financing Cycle

Applying the RACE mnemonic for account balances:

• Completeness

– The inv_________s on hand and held by custodians

A

Investing and Financing Cycle

Applying the RACE mnemonic for account balances:

• Completeness

– The investments on hand and held by custodians

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45
Q

Investing and Financing Cycle

Applying the RACE mnemonic for account balances:

• Completeness

– The investments on h__d and held by custodians

A

Investing and Financing Cycle

Applying the RACE mnemonic for account balances:

• Completeness

– The investments on hand and held by custodians

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46
Q

Investing and Financing Cycle

Applying the RACE mnemonic for account balances:

• Completeness

– The investments on hand and h__d by custodians

A

Investing and Financing Cycle

Applying the RACE mnemonic for account balances:

• Completeness

– The investments on hand and held by custodians

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47
Q

Investing and Financing Cycle

Applying the RACE mnemonic for account balances:

• Completeness

– The investments on hand and held by cu_______s

A

Investing and Financing Cycle

Applying the RACE mnemonic for account balances:

• Completeness

– The investments on hand and held by custodians

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48
Q

Investing and Financing Cycle

Applying the RACE mnemonic for account balances:

• Completeness

– The investments on hand and held by custodians

are pe_______lly reconciled to their recorded amounts.

A

Investing and Financing Cycle

Applying the RACE mnemonic for account balances:

• Completeness

– The investments on hand and held by custodians

are periodically reconciled to their recorded amounts.

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49
Q

Investing and Financing Cycle

Applying the RACE mnemonic for account balances:

• Completeness

– The investments on hand and held by custodians

are periodically re____iled to their recorded amounts.

A

Investing and Financing Cycle

Applying the RACE mnemonic for account balances:

• Completeness

– The investments on hand and held by custodians

are periodically reconciled to their recorded amounts.

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50
Q

Investing and Financing Cycle

Applying the RACE mnemonic for account balances:

• Completeness

– The investments on hand and held by custodians

are periodically reconciled to their re____ed amounts.

A

Investing and Financing Cycle

Applying the RACE mnemonic for account balances:

• Completeness

– The investments on hand and held by custodians

are periodically reconciled to their recorded amounts.

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51
Q

Investing and Financing Cycle

Applying the RACE mnemonic for account balances:

• Completeness

– The investments on hand and held by custodians

are periodically reconciled to their recorded am_____s.

A

Investing and Financing Cycle

Applying the RACE mnemonic for account balances:

• Completeness

– The investments on hand and held by custodians

are periodically reconciled to their recorded amounts.

How well did you know this?
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52
Q

Investing and Financing Cycle

Applying the RACE mnemonic for account balances:

  • Rights and obligations
  • Allocation and Valuation
  • Completeness
  • Existence

• Completeness
– The investments on hand and held by custodians are periodically reconciled to their recorded amounts.

• Existence
– The entity maintains physical custody of investments in a secure physical location or they are maintained in the custody of a trustee, which can be confirmed.

A

Investing and Financing Cycle

Applying the RACE mnemonic for account balances:

  • Rights and obligations
  • Allocation and Valuation
  • Completeness
  • Existence

• Completeness
– The investments on hand and held by custodians are periodically reconciled to their recorded amounts.

• Existence
– The entity maintains physical custody of investments in a secure physical location or they are maintained in the custody of a trustee, which can be confirmed.

How well did you know this?
1
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53
Q

Investing and Financing Cycle

Applying the RACE mnemonic for account balances:

  • Rights and obligations
  • Allocation and Valuation
  • Completeness
  • Existence

• Existence
– The entity maintains physical custody of investments in a secure physical location or they are maintained in the custody of a trustee, which can be confirmed.

A

Investing and Financing Cycle

Applying the RACE mnemonic for account balances:

  • Rights and obligations
  • Allocation and Valuation
  • Completeness
  • Existence

• Existence
– The entity maintains physical custody of investments in a secure physical location or they are maintained in the custody of a trustee, which can be confirmed.

How well did you know this?
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54
Q

Investing and Financing Cycle

Applying the RACE mnemonic for account balances:

• Existence

– The e____y maintains physical custody of investments in a secure physical location

A

Investing and Financing Cycle

Applying the RACE mnemonic for account balances:

• Existence

– The entity maintains physical custody of investments in a secure physical location

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55
Q

Investing and Financing Cycle

Applying the RACE mnemonic for account balances:

• Existence

– The entity ma_______s physical custody of investments in a secure physical location

A

Investing and Financing Cycle

Applying the RACE mnemonic for account balances:

• Existence

– The entity maintains physical custody of investments in a secure physical location

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56
Q

Investing and Financing Cycle

Applying the RACE mnemonic for account balances:

• Existence

– The entity maintains ph____al custody of investments in a secure physical location

A

Investing and Financing Cycle

Applying the RACE mnemonic for account balances:

• Existence

– The entity maintains physical custody of investments in a secure physical location

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57
Q

Investing and Financing Cycle

Applying the RACE mnemonic for account balances:

• Existence

– The entity maintains physical c____dy of investments in a secure physical location

A

Investing and Financing Cycle

Applying the RACE mnemonic for account balances:

• Existence

– The entity maintains physical custody of investments in a secure physical location

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58
Q

Investing and Financing Cycle

Applying the RACE mnemonic for account balances:

• Existence

– The entity maintains physical custody of in_________s in a secure physical location

A

Investing and Financing Cycle

Applying the RACE mnemonic for account balances:

• Existence

– The entity maintains physical custody of investments in a secure physical location

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59
Q

Investing and Financing Cycle

Applying the RACE mnemonic for account balances:

• Existence

– The entity maintains physical custody of investments in a se____ physical location

A

Investing and Financing Cycle

Applying the RACE mnemonic for account balances:

• Existence

– The entity maintains physical custody of investments in a secure physical location

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60
Q

Investing and Financing Cycle

Applying the RACE mnemonic for account balances:

• Existence

– The entity maintains physical custody of investments in a secure physical lo________

A

Investing and Financing Cycle

Applying the RACE mnemonic for account balances:

• Existence

– The entity maintains physical custody of investments in a secure physical location

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61
Q

Investing and Financing Cycle

Applying the RACE mnemonic for account balances:

• Existence

– The entity maintains physical custody of investments in a secure physical location

or they are ma______ed in the custody of a trustee, which can be confirmed.

A

Investing and Financing Cycle

Applying the RACE mnemonic for account balances:

• Existence

– The entity maintains physical custody of investments in a secure physical location

or they are maintained in the custody of a trustee, which can be confirmed.

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62
Q

Investing and Financing Cycle

Applying the RACE mnemonic for account balances:

• Existence

– The entity maintains physical custody of investments in a secure physical location

or they are maintained in the c______y of a trustee, which can be confirmed.

A

Investing and Financing Cycle

Applying the RACE mnemonic for account balances:

• Existence

– The entity maintains physical custody of investments in a secure physical location

or they are maintained in the custody of a trustee, which can be confirmed.

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63
Q

Investing and Financing Cycle

Applying the RACE mnemonic for account balances:

• Existence

– The entity maintains physical custody of investments in a secure physical location

or they are maintained in the custody of a tr____ee, which can be confirmed.

A

Investing and Financing Cycle

Applying the RACE mnemonic for account balances:

• Existence

– The entity maintains physical custody of investments in a secure physical location

or they are maintained in the custody of a trustee, which can be confirmed.

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64
Q

Investing and Financing Cycle

Applying the RACE mnemonic for account balances:

• Existence

– The entity maintains physical custody of investments in a secure physical location

or they are maintained in the custody of a trustee, which can be co_____ed.

A

Investing and Financing Cycle

Applying the RACE mnemonic for account balances:

• Existence

– The entity maintains physical custody of investments in a secure physical location

or they are maintained in the custody of a trustee, which can be confirmed.

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65
Q

Investing and Financing Cycle

Applying the RACE mnemonic for account balances:

• Existence

– The entity maintains physical custody of investments in a secure physical location or they are maintained in the custody of a trustee, which can be confirmed.

A

Investing and Financing Cycle

Applying the RACE mnemonic for account balances:

• Existence

– The entity maintains physical custody of investments in a secure physical location or they are maintained in the custody of a trustee, which can be confirmed.

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66
Q

Investing and Financing Cycle

Applying the RACE mnemonic for account balances:

  • Rights and obligations
  • Allocation and Valuation
  • Completeness
  • Existence

• R_____ and o________
– Management examines investment securities to verify that they are registered in the name of the entity or confirms such with custodians of the investments.

• A________ and V_________
– The recorded values of investments are periodically compared to current market prices.

• Completeness
– The investments on hand and held by custodians are periodically reconciled to their recorded amounts.

• Existence
– The entity maintains physical custody of investments in a secure physical location or they are maintained in the custody of a trustee, which can be confirmed.

A

Investing and Financing Cycle

Applying the RACE mnemonic for account balances:

  • Rights and obligations
  • Allocation and Valuation
  • Completeness
  • Existence

• Rights and obligations
– Management examines investment securities to verify that they are registered in the name of the entity or confirms such with custodians of the investments.

• Allocation and Valuation
– The recorded values of investments are periodically compared to current market prices.

• Completeness
– The investments on hand and held by custodians are periodically reconciled to their recorded amounts.

• Existence
– The entity maintains physical custody of investments in a secure physical location or they are maintained in the custody of a trustee, which can be confirmed.

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67
Q

Investing and Financing Cycle

Applying the RACE mnemonic for account balances:

  • Rights and obligations
  • Allocation and Valuation
  • Completeness
  • Existence

• Rights and obligations
– Management examines investment securities to verify that they are registered in the name of the entity or confirms such with custodians of the investments.

• Allocation and Valuation
– The recorded values of investments are periodically compared to current market prices.

• C____________
– The investments on hand and held by custodians are periodically reconciled to their recorded amounts.

• E_________
– The entity maintains physical custody of investments in a secure physical location or they are maintained in the custody of a trustee, which can be confirmed.

A

Investing and Financing Cycle

Applying the RACE mnemonic for account balances:

  • Rights and obligations
  • Allocation and Valuation
  • Completeness
  • Existence

• Rights and obligations
– Management examines investment securities to verify that they are registered in the name of the entity or confirms such with custodians of the investments.

• Allocation and Valuation
– The recorded values of investments are periodically compared to current market prices.

• Completeness
– The investments on hand and held by custodians are periodically reconciled to their recorded amounts.

• Existence
– The entity maintains physical custody of investments in a secure physical location or they are maintained in the custody of a trustee, which can be confirmed.

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68
Q

Investing and Financing Cycle

The procedures (of applying the RACE for account balances:

  • Rights and obligations
  • Allocation and Valuation
  • Completeness
  • Existence )

will typically be applied by management or other employees at a very high level,

reflecting the extremely large value and great danger of fraud in connection with marketable securities.

A

Investing and Financing Cycle

The procedures (of applying the RACE for account balances:

  • Rights and obligations
  • Allocation and Valuation
  • Completeness
  • Existence )

will typically be applied by management or other employees at a very high level,

reflecting the extremely large value and great danger of fraud in connection with marketable securities.

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69
Q

Investing and Financing Cycle

The procedures will typically be applied by m__________ or other employees at a very high level,

A

Investing and Financing Cycle

The procedures will typically be applied by management or other employees at a very high level,

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70
Q

Investing and Financing Cycle

The procedures will typically be applied by management or other e________es at a very high level,

A

Investing and Financing Cycle

The procedures will typically be applied by management or other employees at a very high level,

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71
Q

Investing and Financing Cycle

The procedures will typically be applied by management or other employees at a very hi__ level,

reflecting the extremely large value and great danger of fraud in connection with marketable securities.

A

Investing and Financing Cycle

The procedures will typically be applied by management or other employees at a very high level,

reflecting the extremely large value and great danger of fraud in connection with marketable securities.

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72
Q

Investing and Financing Cycle

The procedures will typically be applied by management or other employees at a very high level,

reflecting the extremely la__e value and great danger of fraud in connection with marketable securities.

A

Investing and Financing Cycle

The procedures will typically be applied by management or other employees at a very high level,

reflecting the extremely large value and great danger of fraud in connection with marketable securities.

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73
Q

Investing and Financing Cycle

The procedures will typically be applied by management or other employees at a very high level,

reflecting the extremely large value and great d___er of fraud in connection with marketable securities.

A

Investing and Financing Cycle

The procedures will typically be applied by management or other employees at a very high level,

reflecting the extremely large value and great danger of fraud in connection with marketable securities.

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74
Q

Investing and Financing Cycle

The procedures will typically be applied by management or other employees at a very high level,

reflecting the extremely large value and great danger of fr___ in connection with marketable securities.

A

Investing and Financing Cycle

The procedures will typically be applied by management or other employees at a very high level,

reflecting the extremely large value and great danger of fraud in connection with marketable securities.

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75
Q

Investing and Financing Cycle

The procedures will typically be applied by management or other employees at a very high level,

reflecting the extremely large value and great danger of fraud in connection with ma________ securities.

A

Investing and Financing Cycle

The procedures will typically be applied by management or other employees at a very high level,

reflecting the extremely large value and great danger of fraud in connection with marketable securities.

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76
Q

Investing and Financing Cycle

The procedures will typically be applied by management or other employees at a very high level,

reflecting the extremely large value and great danger of fraud in connection with marketable se______ies.

A

Investing and Financing Cycle

The procedures will typically be applied by management or other employees at a very high level,

reflecting the extremely large value and great danger of fraud in connection with marketable securities.

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77
Q

Investing and Financing Cycle

The pr_________s will typically be applied by management or other employees at a very high level,

reflecting the extremely large value and great danger of fraud in connection with marketable securities.

A

Investing and Financing Cycle

The procedures will typically be applied by management or other employees at a very high level,

reflecting the extremely large value and great danger of fraud in connection with marketable securities.

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78
Q

Investing and Financing Cycle

The procedures (applying RACE) will typically be applied by management or other employees at a very high level,

reflecting the extremely large value and great danger of fraud in connection with marketable securities.

Requiring two o______s to be involved in access is common.

A

Investing and Financing Cycle

The procedures (applying RACE) will typically be applied by management or other employees at a very high level,

reflecting the extremely large value and great danger of fraud in connection with marketable securities.

Requiring two officers to be involved in access is common.

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79
Q

Investing and Financing Cycle

The procedures (applying RACE) will typically be applied by management or other employees at a very high level,

reflecting the extremely large value and great danger of fraud in connection with marketable securities.

Requiring t__ officers to be involved in access is common.

A

Investing and Financing Cycle

The procedures (applying RACE) will typically be applied by management or other employees at a very high level,

reflecting the extremely large value and great danger of fraud in connection with marketable securities.

Requiring two officers to be involved in access is common.

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80
Q

Investing and Financing Cycle

The procedures (applying RACE) will typically be applied by management or other employees at a very high level,

reflecting the extremely large value and great danger of fraud in connection with marketable securities.

Requiring two officers to be in____ed in access is common.

A

Investing and Financing Cycle

The procedures (applying RACE) will typically be applied by management or other employees at a very high level,

reflecting the extremely large value and great danger of fraud in connection with marketable securities.

Requiring two officers to be involved in access is common.

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81
Q

Investing and Financing Cycle

The procedures (applying RACE) will typically be applied by management or other employees at a very high level,

reflecting the extremely large value and great danger of fraud in connection with marketable securities.

Requiring two officers to be involved in ac___s is common.

A

Investing and Financing Cycle

The procedures (applying RACE) will typically be applied by management or other employees at a very high level,

reflecting the extremely large value and great danger of fraud in connection with marketable securities.

Requiring two officers to be involved in access is common.

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82
Q

Investing and Financing Cycle

The procedures (applying RACE) will typically be applied by management or other employees at a very high level,

reflecting the extremely large value and great danger of fraud in connection with marketable securities.

Requiring two officers to be involved in access is co____n.

A

Investing and Financing Cycle

The procedures (applying RACE) will typically be applied by management or other employees at a very high level,

reflecting the extremely large value and great danger of fraud in connection with marketable securities.

Requiring two officers to be involved in access is common.

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83
Q

Investing and Financing Cycle

The procedures (applying RACE) will typically be applied by management or other employees at a very high level,

reflecting the extremely large value and great danger of fraud in connection with marketable securities.

Requiring two officers to be involved in access is common.

In f__t, it is generally best to have an independent trustee maintain possession of securities so that they are safeguarded from all misappropriation by company employees.

A

Investing and Financing Cycle

The procedures (applying RACE) will typically be applied by management or other employees at a very high level,

reflecting the extremely large value and great danger of fraud in connection with marketable securities.

Requiring two officers to be involved in access is common.

In fact, it is generally best to have an independent trustee maintain possession of securities so that they are safeguarded from all misappropriation by company employees.

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84
Q

Investing and Financing Cycle

In fact, it is generally b__t to have an independent trustee maintain possession of securities

A

Investing and Financing Cycle

In fact, it is generally best to have an independent trustee maintain possession of securities

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85
Q

Investing and Financing Cycle

In fact, it is generally best to have an ind________ trustee maintain possession of securities

A

Investing and Financing Cycle

In fact, it is generally best to have an independent trustee maintain possession of securities

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86
Q

Investing and Financing Cycle

In fact, it is generally best to have an independent tr____e maintain possession of securities

A

Investing and Financing Cycle

In fact, it is generally best to have an independent trustee maintain possession of securities

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87
Q

Investing and Financing Cycle

In fact, it is generally best to have an independent trustee maintain po______ion of securities

A

Investing and Financing Cycle

In fact, it is generally best to have an independent trustee maintain possession of securities

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88
Q

Investing and Financing Cycle

In fact, it is generally best to have an independent trustee maintain possession of s_____ities

A

Investing and Financing Cycle

In fact, it is generally best to have an independent trustee maintain possession of securities

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89
Q

Investing and Financing Cycle

In fact, it is generally best to have an independent trustee maintain possession of securities

so that they are safe______ed from all misappropriation by company employees.

A

Investing and Financing Cycle

In fact, it is generally best to have an independent trustee maintain possession of securities

so that they are safeguarded from all misappropriation by company employees.

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90
Q

Investing and Financing Cycle

In fact, it is generally best to have an independent trustee maintain possession of securities

so that they are safeguarded from all mis_________n by company employees.

A

Investing and Financing Cycle

In fact, it is generally best to have an independent trustee maintain possession of securities

so that they are safeguarded from all misappropriation by company employees.

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91
Q

Investing and Financing Cycle

In fact, it is generally best to have an independent trustee maintain possession of securities

so that they are safeguarded from all misappropriation by company em____ees.

A

Investing and Financing Cycle

In fact, it is generally best to have an independent trustee maintain possession of securities

so that they are safeguarded from all misappropriation by company employees.

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92
Q

Investing and Financing Cycle

In fact, it is generally best to have an independent trustee maintain possession of securities

so that they are safeguarded from all misappropriation by co_____y employees.

A

Investing and Financing Cycle

In fact, it is generally best to have an independent trustee maintain possession of securities

so that they are safeguarded from all misappropriation by company employees.

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93
Q

Investing and Financing Cycle

The procedures will typically be applied by m___________ or other employees at a very high level, reflecting the extremely large value and great danger of fraud in connection with marketable securities.

Requiring two officers to be involved in access is common.

In fact, it is generally best to have an independent trustee maintain possession of securities so that they are safeguarded from all misappropriation by company employees.

A

Investing and Financing Cycle

The procedures will typically be applied by management or other employees at a very high level, reflecting the extremely large value and great danger of fraud in connection with marketable securities.

Requiring two officers to be involved in access is common.

In fact, it is generally best to have an independent trustee maintain possession of securities so that they are safeguarded from all misappropriation by company employees.

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94
Q

Investing and Financing Cycle

The procedures will typically be applied by management or other employees at a v__y high le___, reflecting the extremely large value and great danger of fraud in connection with marketable securities.

Requiring two officers to be involved in access is common.

In fact, it is generally best to have an independent trustee maintain possession of securities so that they are safeguarded from all misappropriation by company employees.

A

Investing and Financing Cycle

The procedures will typically be applied by management or other employees at a very high level, reflecting the extremely large value and great danger of fraud in connection with marketable securities.

Requiring two officers to be involved in access is common.

In fact, it is generally best to have an independent trustee maintain possession of securities so that they are safeguarded from all misappropriation by company employees.

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95
Q

Investing and Financing Cycle

The procedures will typically be applied by management or other employees at a very high level, reflecting the extremely la__e value and g___t danger of fraud in connection with marketable securities.

Requiring two officers to be involved in access is common.

In fact, it is generally best to have an independent trustee maintain possession of securities so that they are safeguarded from all misappropriation by company employees.

A

Investing and Financing Cycle

The procedures will typically be applied by management or other employees at a very high level, reflecting the extremely large value and great danger of fraud in connection with marketable securities.

Requiring two officers to be involved in access is common.

In fact, it is generally best to have an independent trustee maintain possession of securities so that they are safeguarded from all misappropriation by company employees.

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96
Q

Investing and Financing Cycle

The procedures will typically be applied by management or other employees at a very high level, reflecting the extremely large value and great danger of fraud in con_______n with marketable se_____ies.

Requiring two officers to be involved in access is common.

In fact, it is generally best to have an independent trustee maintain possession of securities so that they are safeguarded from all misappropriation by company employees.

A

Investing and Financing Cycle

The procedures will typically be applied by management or other employees at a very high level, reflecting the extremely large value and great danger of fraud in connection with marketable securities.

Requiring two officers to be involved in access is common.

In fact, it is generally best to have an independent trustee maintain possession of securities so that they are safeguarded from all misappropriation by company employees.

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97
Q

Investing and Financing Cycle

The procedures will typically be applied by management or other employees at a very high level, reflecting the extremely large value and great danger of fraud in connection with marketable securities.

Requiring two officers to be involved in access is co___on.

In fact, it is ge______lly best to have an independent trustee maintain possession of securities so that they are safeguarded from all misappropriation by company employees.

A

Investing and Financing Cycle

The procedures will typically be applied by management or other employees at a very high level, reflecting the extremely large value and great danger of fraud in connection with marketable securities.

Requiring two officers to be involved in access is common.

In fact, it is generally best to have an independent trustee maintain possession of securities so that they are safeguarded from all misappropriation by company employees.

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98
Q

Investing and Financing Cycle

The procedures will typically be applied by management or other employees at a very high level, reflecting the extremely large value and great danger of fraud in connection with marketable securities.

Requiring two officers to be involved in access is common.

In fact, it is generally best to have an independent trustee mai_____ possession of securities so that they are safeguarded from a__ misappropriation by company employees.

A

Investing and Financing Cycle

The procedures will typically be applied by management or other employees at a very high level, reflecting the extremely large value and great danger of fraud in connection with marketable securities.

Requiring two officers to be involved in access is common.

In fact, it is generally best to have an independent trustee maintain possession of securities so that they are safeguarded from all misappropriation by company employees.

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99
Q

Investing and Financing Cycle

AU-C 501 presents guidance on a____ing

Derivative instruments,
hedging activities,
and investments in both debt and equity securities.

A

Investing and Financing Cycle

AU-C 501 presents guidance on auditing

Derivative instruments,
hedging activities,
and investments in both debt and equity securities.

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100
Q

Investing and Financing Cycle

AU-C 501 presents g_____ce on auditing

Derivative instruments,

A

Investing and Financing Cycle

AU-C 501 presents guidance on auditing

Derivative instruments,

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101
Q

Investing and Financing Cycle

AU-C 501 presents guidance on auditing

D_______e instruments,

A

Investing and Financing Cycle

AU-C 501 presents guidance on auditing

Derivative instruments,

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102
Q

Investing and Financing Cycle

AU-C 501 presents guidance on auditing

Derivative ins________s,
hedging activities,

A

Investing and Financing Cycle

AU-C 501 presents guidance on auditing

Derivative instruments,
hedging activities,

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103
Q

Investing and Financing Cycle

AU-C 501 presents guidance on auditing

Derivative instruments,
he__ing activities,

A

Investing and Financing Cycle

AU-C 501 presents guidance on auditing

Derivative instruments,
hedging activities,

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104
Q

Investing and Financing Cycle

AU-C 501 presents guidance on auditing

Derivative instruments,
hedging ac_____ies,
and investments in both debt and equity securities.

A

Investing and Financing Cycle

AU-C 501 presents guidance on auditing

Derivative instruments,
hedging activities,
and investments in both debt and equity securities.

How well did you know this?
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105
Q

Investing and Financing Cycle

AU-C 501 presents guidance on auditing

Derivative instruments,
hedging activities,
and inv________s in both debt and equity securities.

A

Investing and Financing Cycle

AU-C 501 presents guidance on auditing

Derivative instruments,
hedging activities,
and investments in both debt and equity securities.

How well did you know this?
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106
Q

Investing and Financing Cycle

AU-C 501 presents guidance on auditing

Derivative instruments,
hedging activities,
and investments in both d___ and equity securities.

A

Investing and Financing Cycle

AU-C 501 presents guidance on auditing

Derivative instruments,
hedging activities,
and investments in both debt and equity securities.

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107
Q

Investing and Financing Cycle

AU-C 501 presents guidance on auditing

Derivative instruments,
hedging activities,
and investments in both debt and e____y securities.

A

Investing and Financing Cycle

AU-C 501 presents guidance on auditing

Derivative instruments,
hedging activities,
and investments in both debt and equity securities.

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108
Q

Investing and Financing Cycle

AU-C 501 presents guidance on auditing

Derivative instruments,
hedging activities,
and investments in both debt and equity s_____ities.

A

Investing and Financing Cycle

AU-C 501 presents guidance on auditing

Derivative instruments,
hedging activities,
and investments in both debt and equity securities.

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109
Q

Investing and Financing Cycle

AU-C 501 presents guidance on auditing
Derivative instruments,
hedging activities,
and investments in both debt and equity securities.

Applicable accounting standards are in
the FASB Codification, Topic 815,
Derivatives and Hedging.

A

Investing and Financing Cycle

AU-C 501 presents guidance on auditing
Derivative instruments,
hedging activities,
and investments in both debt and equity securities.

Applicable accounting standards are in
the FASB Codification, Topic 815,
Derivatives and Hedging.

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110
Q

Investing and Financing Cycle

Internal Controls

Inherent risk associated with in________s, particularly marketable securities, is generally high

A

Investing and Financing Cycle

Internal Controls

Inherent risk associated with investments, particularly marketable securities, is generally high

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111
Q

Investing and Financing Cycle

Internal Controls

Inherent risk associated with investments, particularly ma_______e securities, is generally high,

A

Investing and Financing Cycle

Internal Controls

Inherent risk associated with investments, particularly marketable securities, is generally high,

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112
Q

Investing and Financing Cycle

Internal Controls

Inherent risk associated with investments, particularly marketable se_______es, is generally high,

A

Investing and Financing Cycle

Internal Controls

Inherent risk (IR) associated with investments, particularly marketable securities, is generally high,

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113
Q

Investing and Financing Cycle

Internal Controls

Inh______ risk (IR) associated with investments, particularly marketable securities, is generally high,

A

Investing and Financing Cycle

Internal Controls

Inherent risk (IR) associated with investments, particularly marketable securities, is generally high,

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114
Q

Investing and Financing Cycle

Internal Controls

Inherent r___ (IR) associated with investments, particularly marketable securities, is generally high,

A

Investing and Financing Cycle

Internal Controls

Inherent risk (IR) associated with investments, particularly marketable securities, is generally high,

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115
Q

Investing and Financing Cycle

Internal Controls

Inherent risk (IR) associated with investments, particularly marketable securities, is generally high,

largely due to the f__t that their value is readily determinable and they are frequently easily transferrable.

A

Investing and Financing Cycle

Internal Controls

Inherent risk (IR) associated with investments, particularly marketable securities, is generally high,

largely due to the fact that their value is readily determinable and they are frequently easily transferrable.

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116
Q

Investing and Financing Cycle

Internal Controls

Inherent risk (IR) associated with investments, particularly marketable securities, is generally high,

largely due to the fact that their v___e is readily determinable and they are frequently easily transferrable.

A

Investing and Financing Cycle

Internal Controls

Inherent risk (IR) associated with investments, particularly marketable securities, is generally high,

largely due to the fact that their value is readily determinable and they are frequently easily transferrable.

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117
Q

Investing and Financing Cycle

Internal Controls

Inherent risk (IR) associated with investments, particularly marketable securities, is generally high,

largely due to the fact that their value is readily determinable and they are frequently e___ly transferrable.

A

Investing and Financing Cycle

Internal Controls

Inherent risk (IR) associated with investments, particularly marketable securities, is generally high,

largely due to the fact that their value is readily determinable and they are frequently easily transferrable.

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118
Q

Investing and Financing Cycle

Internal Controls

Inherent risk (IR) associated with investments, particularly marketable securities, is generally high,

largely due to the fact that their value is readily determinable and they are frequently easily trans_________.

A

Investing and Financing Cycle

Internal Controls

Inherent risk (IR) associated with investments, particularly marketable securities, is generally high,

largely due to the fact that their value is readily determinable and they are frequently easily transferrable.

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119
Q

Investing and Financing Cycle

Internal Controls

Inherent risk (IR) associated with investments, particularly marketable securities, is generally high,

la___ly due to the fact that their value is readily determinable and they are frequently easily transferrable.

A

Investing and Financing Cycle

Internal Controls

Inherent risk (IR) associated with investments, particularly marketable securities, is generally high,

largely due to the fact that their value is readily determinable and they are frequently easily transferrable.

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120
Q

Investing and Financing Cycle

Internal Co_____s

Inherent risk (IR) associated with investments, particularly marketable securities, is generally high,

largely due to the fact that their value is readily determinable and they are frequently easily transferrable.

A

Investing and Financing Cycle

Internal Controls

Inherent risk (IR) associated with investments, particularly marketable securities, is generally high,

largely due to the fact that their value is readily determinable and they are frequently easily transferrable.

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121
Q

Investing and Financing Cycle

Internal Controls

Inherent risk (IR) associated with investments, particularly marketable securities, is generally high, largely due to the fact that their value is readily determinable and they are frequently easily transferrable.

Inherent Risk Assessment (IR):
Factors affecting inherent risk in this area include:

  • Management’s investment objectives
  • Complexity of the security or derivative instrument
  • Whether the transaction giving rise to the security involved cash
  • The entities with the security or derivative in question
  • Whether the derivative is stand-alone or an embedded feature of a separate agreement
  • External factors affecting management’s assertions such as credit, market and legal risks
  • Evolving GAAP with respect to derivatives and investments
  • Reliance on outside parties
  • Assumptions about future conditions
A

Investing and Financing Cycle

Internal Controls

Inherent risk (IR) associated with investments, particularly marketable securities, is generally high, largely due to the fact that their value is readily determinable and they are frequently easily transferrable.

Inherent Risk Assessment (IR):
Factors affecting inherent risk in this area include:

  • Management’s investment objectives
  • Complexity of the security or derivative instrument
  • Whether the transaction giving rise to the security involved cash
  • The entities with the security or derivative in question
  • Whether the derivative is stand-alone or an embedded feature of a separate agreement
  • External factors affecting management’s assertions such as credit, market and legal risks
  • Evolving GAAP with respect to derivatives and investments
  • Reliance on outside parties
  • Assumptions about future conditions
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122
Q

Investing and Financing Cycle
Internal Controls

Inherent Risk Assessment (IR):
Factors affecting inherent risk in this area include:

• Management’s inv________ objectives

A

Investing and Financing Cycle
Internal Controls

Inherent Risk Assessment (IR):
Factors affecting inherent risk in this area include:

• Management’s investment objectives

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123
Q

Investing and Financing Cycle
Internal Controls

Inherent Risk Assessment (IR):
Factors affecting inherent risk in this area include:

• Ma__________’s investment objectives

A

Investing and Financing Cycle
Internal Controls

Inherent Risk Assessment (IR):
Factors affecting inherent risk in this area include:

• Management’s investment objectives

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124
Q

Investing and Financing Cycle
Internal Controls

Inherent Risk Assessment (IR):
Factors affecting inherent risk in this area include:

  • Management’s investment objectives
  • Complexity of the se_____y or derivative instrument
A

Investing and Financing Cycle
Internal Controls

Inherent Risk Assessment (IR):
Factors affecting inherent risk in this area include:

  • Management’s investment objectives
  • Complexity of the security or derivative instrument
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125
Q

Investing and Financing Cycle
Internal Controls

Inherent Risk Assessment (IR):
Factors affecting inherent risk in this area include:

• Com____ity of the security or derivative instrument

A

Investing and Financing Cycle
Internal Controls

Inherent Risk Assessment (IR):
Factors affecting inherent risk in this area include:

• Complexity of the security or derivative instrument

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126
Q

Investing and Financing Cycle
Internal Controls

Inherent Risk Assessment (IR):
Factors affecting inherent risk in this area include:

• Complexity of the security or de______e instrument

A

Investing and Financing Cycle
Internal Controls

Inherent Risk Assessment (IR):
Factors affecting inherent risk in this area include:

• Complexity of the security or derivative instrument

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127
Q

Investing and Financing Cycle
Internal Controls

Inherent Risk Assessment (IR):
Factors affecting inherent risk in this area include:

• Complexity of the security or derivative in_________

A

Investing and Financing Cycle
Internal Controls

Inherent Risk Assessment (IR):
Factors affecting inherent risk in this area include:

• Complexity of the security or derivative instrument

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128
Q

Investing and Financing Cycle
Internal Controls

Inherent Risk Assessment (IR):
Factors affecting inherent risk in this area include:

• Complexity of the security or derivative in_________

A

Investing and Financing Cycle
Internal Controls

Inherent Risk Assessment (IR):
Factors affecting inherent risk in this area include:

• Complexity of the security or derivative instrument

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129
Q

Investing and Financing Cycle
Internal Controls

Inherent Risk Assessment (IR):
Factors affecting inherent risk in this area include:

  • Complexity of the security or derivative instrument
  • Whether the tra________ giving rise to the security involved cash
A

Investing and Financing Cycle
Internal Controls

Inherent Risk Assessment (IR):
Factors affecting inherent risk in this area include:

  • Complexity of the security or derivative instrument
  • Whether the transaction giving rise to the security involved cash
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130
Q

Investing and Financing Cycle
Internal Controls

Inherent Risk Assessment (IR):
Factors affecting inherent risk in this area include:

• Whether the transaction giving ri__ to the security involved cash

A

Investing and Financing Cycle
Internal Controls

Inherent Risk Assessment (IR):
Factors affecting inherent risk in this area include:

• Whether the transaction giving rise to the security involved cash

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131
Q

Investing and Financing Cycle
Internal Controls

Inherent Risk Assessment (IR):
Factors affecting inherent risk in this area include:

• Whether the transaction giving rise to the s_____ity involved cash

A

Investing and Financing Cycle
Internal Controls

Inherent Risk Assessment (IR):
Factors affecting inherent risk in this area include:

• Whether the transaction giving rise to the security involved cash

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132
Q

Investing and Financing Cycle
Internal Controls

Inherent Risk Assessment (IR):
Factors affecting inherent risk in this area include:

• Whether the transaction giving rise to the security involved c__h

A

Investing and Financing Cycle
Internal Controls

Inherent Risk Assessment (IR):
Factors affecting inherent risk in this area include:

• Whether the transaction giving rise to the security involved cash

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133
Q

Investing and Financing Cycle
Internal Controls

Inherent Risk Assessment (IR):
Factors affecting inherent risk in this area include:

  • M________’s investment objectives
  • Complexity of the security or derivative instrument
  • Whether the transaction giving rise to the security involved cash
A

Investing and Financing Cycle
Internal Controls

Inherent Risk Assessment (IR):
Factors affecting inherent risk in this area include:

  • Management’s investment objectives
  • Complexity of the security or derivative instrument
  • Whether the transaction giving rise to the security involved cash
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134
Q

Investing and Financing Cycle
Internal Controls

Inherent Risk Assessment (IR):
Factors affecting inherent risk in this area include:

  • Management’s investment ob________s
  • Complexity of the security or derivative instrument
  • Whether the transaction giving rise to the security involved cash
A

Investing and Financing Cycle
Internal Controls

Inherent Risk Assessment (IR):
Factors affecting inherent risk in this area include:

  • Management’s investment objectives
  • Complexity of the security or derivative instrument
  • Whether the transaction giving rise to the security involved cash
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135
Q

Investing and Financing Cycle
Internal Controls

Inherent Risk Assessment (IR):
Factors affecting inherent risk in this area include:

  • Management’s investment objectives
  • Co______ity of the security or derivative instrument
  • Whether the transaction giving rise to the security involved cash
A

Investing and Financing Cycle
Internal Controls

Inherent Risk Assessment (IR):
Factors affecting inherent risk in this area include:

  • Management’s investment objectives
  • Complexity of the security or derivative instrument
  • Whether the transaction giving rise to the security involved cash
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136
Q

Investing and Financing Cycle
Internal Controls

Inherent Risk Assessment (IR):
Factors affecting inherent risk in this area include:

  • Management’s investment objectives
  • Complexity of the s_____ity or derivative instrument
  • Whether the transaction giving rise to the security involved cash
A

Investing and Financing Cycle
Internal Controls

Inherent Risk Assessment (IR):
Factors affecting inherent risk in this area include:

  • Management’s investment objectives
  • Complexity of the security or derivative instrument
  • Whether the transaction giving rise to the security involved cash
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137
Q

Investing and Financing Cycle
Internal Controls

Inherent Risk Assessment (IR):
Factors affecting inherent risk in this area include:

  • Management’s investment objectives
  • Complexity of the security or de_______ instrument
  • Whether the transaction giving rise to the security involved cash
A

Investing and Financing Cycle
Internal Controls

Inherent Risk Assessment (IR):
Factors affecting inherent risk in this area include:

  • Management’s investment objectives
  • Complexity of the security or derivative instrument
  • Whether the transaction giving rise to the security involved cash
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138
Q

Investing and Financing Cycle
Internal Controls

Inherent Risk Assessment (IR):
Factors affecting inherent risk in this area include:

  • Management’s investment objectives
  • Complexity of the security or derivative ins________
  • Whether the transaction giving rise to the security involved cash
A

Investing and Financing Cycle
Internal Controls

Inherent Risk Assessment (IR):
Factors affecting inherent risk in this area include:

  • Management’s investment objectives
  • Complexity of the security or derivative instrument
  • Whether the transaction giving rise to the security involved cash
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139
Q

Investing and Financing Cycle
Internal Controls

Inherent Risk Assessment (IR):
Factors affecting inherent risk in this area include:

  • Management’s inv_______ objectives
  • Complexity of the security or derivative instrument
  • Whether the transaction giving rise to the security involved cash
A

Investing and Financing Cycle
Internal Controls

Inherent Risk Assessment (IR):
Factors affecting inherent risk in this area include:

  • Management’s investment objectives
  • Complexity of the security or derivative instrument
  • Whether the transaction giving rise to the security involved cash
140
Q

Investing and Financing Cycle
Internal Controls

Inherent Risk Assessment (IR):
Factors affecting inherent risk in this area include:

  • Management’s investment objectives
  • Complexity of the security or derivative instrument
  • Whether the tran______ giving rise to the security involved cash
A

Investing and Financing Cycle
Internal Controls

Inherent Risk Assessment (IR):
Factors affecting inherent risk in this area include:

  • Management’s investment objectives
  • Complexity of the security or derivative instrument
  • Whether the transaction giving rise to the security involved cash
141
Q

Investing and Financing Cycle
Internal Controls

Inherent Risk Assessment (IR):
Factors affecting inherent risk in this area include:

  • Management’s investment objectives
  • Complexity of the security or derivative instrument
  • Whether the transaction giving rise to the security in___ed cash
A

Investing and Financing Cycle
Internal Controls

Inherent Risk Assessment (IR):
Factors affecting inherent risk in this area include:

  • Management’s investment objectives
  • Complexity of the security or derivative instrument
  • Whether the transaction giving rise to the security involved cash
142
Q

Investing and Financing Cycle
Internal Controls

Inherent Risk Assessment (IR):
Factors affecting inherent risk in this area include:

  • Management’s investment objectives
  • Complexity of the security or derivative instrument
  • Whether the transaction g__ing rise to the security involved cash
A

Investing and Financing Cycle
Internal Controls

Inherent Risk Assessment (IR):
Factors affecting inherent risk in this area include:

  • Management’s investment objectives
  • Complexity of the security or derivative instrument
  • Whether the transaction giving rise to the security involved cash
143
Q

Investing and Financing Cycle
Internal Controls

Inherent Risk Assessment (IR):
Factors affecting inherent risk in this area include:

  • Management’s investment objectives
  • Complexity of the security or derivative instrument
  • Whether the transaction giving rise to the security involved cash

• The e____ies with the security or derivative in question

A

Investing and Financing Cycle
Internal Controls

Inherent Risk Assessment (IR):
Factors affecting inherent risk in this area include:

  • Management’s investment objectives
  • Complexity of the security or derivative instrument
  • Whether the transaction giving rise to the security involved cash

• The entities with the security or derivative in question

144
Q

Investing and Financing Cycle
Internal Controls

Inherent Risk Assessment (IR):
Factors affecting inherent risk in this area include:

• The entities with the s_____ity or derivative in question

A

Investing and Financing Cycle
Internal Controls

Inherent Risk Assessment (IR):
Factors affecting inherent risk in this area include:

• The entities with the security or derivative in question

145
Q

Investing and Financing Cycle
Internal Controls

Inherent Risk Assessment (IR):
Factors affecting inherent risk in this area include:

• The entities with the security or de_______e in question

A

Investing and Financing Cycle
Internal Controls

Inherent Risk Assessment (IR):
Factors affecting inherent risk in this area include:

• The entities with the security or derivative in question

146
Q

Investing and Financing Cycle
Internal Controls

Inherent Risk Assessment (IR):
Factors affecting inherent risk in this area include:

• The entities with the security or derivative in que______

A

Investing and Financing Cycle
Internal Controls

Inherent Risk Assessment (IR):
Factors affecting inherent risk in this area include:

• The entities with the security or derivative in question

147
Q

Investing and Financing Cycle
Internal Controls

Inherent Risk Assessment (IR):
Factors affecting inherent risk in this area include:

  • The entities with the security or derivative in question
  • Whether the de________ is stand-alone or an embedded feature of a separate agreement
A

Investing and Financing Cycle
Internal Controls

Inherent Risk Assessment (IR):
Factors affecting inherent risk in this area include:

  • The entities with the security or derivative in question
  • Whether the derivative is stand-alone or an embedded feature of a separate agreement
148
Q

Investing and Financing Cycle
Internal Controls

Inherent Risk Assessment (IR):
Factors affecting inherent risk in this area include:

  • The entities with the security or derivative in question
  • Whether the derivative is sta__-alone or an embedded feature of a separate agreement
A

Investing and Financing Cycle
Internal Controls

Inherent Risk Assessment (IR):
Factors affecting inherent risk in this area include:

  • The entities with the security or derivative in question
  • Whether the derivative is stand-alone or an embedded feature of a separate agreement
149
Q

Investing and Financing Cycle
Internal Controls

Inherent Risk Assessment (IR):
Factors affecting inherent risk in this area include:

• Whether the derivative is stand-al__e or an embedded feature of a separate agreement

A

Investing and Financing Cycle
Internal Controls

Inherent Risk Assessment (IR):
Factors affecting inherent risk in this area include:

• Whether the derivative is stand-alone or an embedded feature of a separate agreement

150
Q

Investing and Financing Cycle
Internal Controls

Inherent Risk Assessment (IR):
Factors affecting inherent risk in this area include:

• Whether the derivative is stand-alone or an em____ed feature of a separate agreement

A

Investing and Financing Cycle
Internal Controls

Inherent Risk Assessment (IR):
Factors affecting inherent risk in this area include:

• Whether the derivative is stand-alone or an embedded feature of a separate agreement

151
Q

Investing and Financing Cycle
Internal Controls

Inherent Risk Assessment (IR):
Factors affecting inherent risk in this area include:

• Whether the derivative is stand-alone or an embedded fea____ of a separate agreement

A

Investing and Financing Cycle
Internal Controls

Inherent Risk Assessment (IR):
Factors affecting inherent risk in this area include:

• Whether the derivative is stand-alone or an embedded feature of a separate agreement

152
Q

Investing and Financing Cycle
Internal Controls

Inherent Risk Assessment (IR):
Factors affecting inherent risk in this area include:

• Whether the derivative is stand-alone or an embedded feature of a se________ agreement

A

Investing and Financing Cycle
Internal Controls

Inherent Risk Assessment (IR):
Factors affecting inherent risk in this area include:

• Whether the derivative is stand-alone or an embedded feature of a separate agreement

153
Q

Investing and Financing Cycle
Internal Controls

Inherent Risk Assessment (IR):
Factors affecting inherent risk in this area include:

• Whether the derivative is stand-alone or an embedded feature of a separate agr_______

A

Investing and Financing Cycle
Internal Controls

Inherent Risk Assessment (IR):
Factors affecting inherent risk in this area include:

• Whether the derivative is stand-alone or an embedded feature of a separate agreement

154
Q

Investing and Financing Cycle
Internal Controls

Inherent Risk Assessment (IR):
Factors affecting inherent risk in this area include:

  • Whether the derivative is stand-alone or an embedded feature of a separate agreement
  • Ext_____ factors affecting management’s assertions such as credit, market and legal risks
A

Investing and Financing Cycle
Internal Controls

Inherent Risk Assessment (IR):
Factors affecting inherent risk in this area include:

  • Whether the derivative is stand-alone or an embedded feature of a separate agreement
  • External factors affecting management’s assertions such as credit, market and legal risks
155
Q

Investing and Financing Cycle
Internal Controls

Inherent Risk Assessment (IR):
Factors affecting inherent risk in this area include:

  • Whether the derivative is stand-alone or an embedded feature of a separate agreement
  • External fa____s affecting management’s assertions such as credit, market and legal risks
A

Investing and Financing Cycle
Internal Controls

Inherent Risk Assessment (IR):
Factors affecting inherent risk in this area include:

  • Whether the derivative is stand-alone or an embedded feature of a separate agreement
  • External factors affecting management’s assertions such as credit, market and legal risks
156
Q

Investing and Financing Cycle
Internal Controls

Inherent Risk Assessment (IR):
Factors affecting inherent risk in this area include:

• External factors a_____ing management’s assertions such as credit, market and legal risks

A

Investing and Financing Cycle
Internal Controls

Inherent Risk Assessment (IR):
Factors affecting inherent risk in this area include:

• External factors affecting management’s assertions such as credit, market and legal risks

157
Q

Investing and Financing Cycle
Internal Controls

Inherent Risk Assessment (IR):
Factors affecting inherent risk in this area include:

• External factors affecting ma_________’s assertions such as credit, market and legal risks

A

Investing and Financing Cycle
Internal Controls

Inherent Risk Assessment (IR):
Factors affecting inherent risk in this area include:

• External factors affecting management’s assertions such as credit, market and legal risks

158
Q

Investing and Financing Cycle
Internal Controls

Inherent Risk Assessment (IR):
Factors affecting inherent risk in this area include:

• External factors affecting management’s as____ions such as credit, market and legal risks

A

Investing and Financing Cycle
Internal Controls

Inherent Risk Assessment (IR):
Factors affecting inherent risk in this area include:

• External factors affecting management’s assertions such as credit, market and legal risks

159
Q

Investing and Financing Cycle
Internal Controls

Inherent Risk Assessment (IR):
Factors affecting inherent risk in this area include:

• External factors affecting management’s assertions such as cre___, market and legal risks

A

Investing and Financing Cycle
Internal Controls

Inherent Risk Assessment (IR):
Factors affecting inherent risk in this area include:

• External factors affecting management’s assertions such as credit, market and legal risks

160
Q

Investing and Financing Cycle
Internal Controls

Inherent Risk Assessment (IR):
Factors affecting inherent risk in this area include:

• External factors affecting management’s assertions such as credit, mar___ and legal risks

A

Investing and Financing Cycle
Internal Controls

Inherent Risk Assessment (IR):
Factors affecting inherent risk in this area include:

• External factors affecting management’s assertions such as credit, market and legal risks

161
Q

Investing and Financing Cycle
Internal Controls

Inherent Risk Assessment (IR):
Factors affecting inherent risk in this area include:

• External factors affecting management’s assertions such as credit, market and le___ risks

A

Investing and Financing Cycle
Internal Controls

Inherent Risk Assessment (IR):
Factors affecting inherent risk in this area include:

• External factors affecting management’s assertions such as credit, market and legal risks

162
Q

Investing and Financing Cycle
Internal Controls

Inherent Risk Assessment (IR):
Factors affecting inherent risk in this area include:

• External factors affecting management’s assertions such as credit, market and legal r___s

A

Investing and Financing Cycle
Internal Controls

Inherent Risk Assessment (IR):
Factors affecting inherent risk in this area include:

• External factors affecting management’s assertions such as credit, market and legal risks

163
Q

Investing and Financing Cycle
Internal Controls

Inherent Risk Assessment (IR):
Factors affecting inherent risk in this area include:

  • The entities with the security or derivative in qu_______
  • Whether the derivative is stand-alone or an embedded feature of a separate agreement
  • External factors affecting management’s assertions such as credit, market and legal risks
A

Investing and Financing Cycle
Internal Controls

Inherent Risk Assessment (IR):
Factors affecting inherent risk in this area include:

  • The entities with the security or derivative in question
  • Whether the derivative is stand-alone or an embedded feature of a separate agreement
  • External factors affecting management’s assertions such as credit, market and legal risks
164
Q

Investing and Financing Cycle
Internal Controls

Inherent Risk Assessment (IR):
Factors affecting inherent risk in this area include:

  • The e_____es with the security or derivative in question
  • Whether the derivative is stand-alone or an embedded feature of a separate agreement
  • External factors affecting management’s assertions such as credit, market and legal risks
A

Investing and Financing Cycle
Internal Controls

Inherent Risk Assessment (IR):
Factors affecting inherent risk in this area include:

  • The entities with the security or derivative in question
  • Whether the derivative is stand-alone or an embedded feature of a separate agreement
  • External factors affecting management’s assertions such as credit, market and legal risks
165
Q

Investing and Financing Cycle
Internal Controls

Inherent Risk Assessment (IR):
Factors affecting inherent risk in this area include:

  • The entities with the security or de______ in question
  • Whether the derivative is stand-alone or an embedded feature of a separate agreement
  • External factors affecting management’s assertions such as credit, market and legal risks
A

Investing and Financing Cycle
Internal Controls

Inherent Risk Assessment (IR):
Factors affecting inherent risk in this area include:

  • The entities with the security or derivative in question
  • Whether the derivative is stand-alone or an embedded feature of a separate agreement
  • External factors affecting management’s assertions such as credit, market and legal risks
166
Q

Investing and Financing Cycle
Internal Controls

Inherent Risk Assessment (IR):
Factors affecting inherent risk in this area include:

  • The entities with the security or derivative in question
  • Whether the de________ is stand-alone or an embedded feature of a separate agreement
  • External factors affecting management’s assertions such as credit, market and legal risks
A

Investing and Financing Cycle
Internal Controls

Inherent Risk Assessment (IR):
Factors affecting inherent risk in this area include:

  • The entities with the security or derivative in question
  • Whether the derivative is stand-alone or an embedded feature of a separate agreement
  • External factors affecting management’s assertions such as credit, market and legal risks
167
Q

Investing and Financing Cycle
Internal Controls

Inherent Risk Assessment (IR):
Factors affecting inherent risk in this area include:

  • The entities with the security or derivative in question
  • Whether the derivative is s_____-al___ or an embedded feature of a separate agreement
  • External factors affecting management’s assertions such as credit, market and legal risks
A

Investing and Financing Cycle
Internal Controls

Inherent Risk Assessment (IR):
Factors affecting inherent risk in this area include:

  • The entities with the security or derivative in question
  • Whether the derivative is stand-alone or an embedded feature of a separate agreement
  • External factors affecting management’s assertions such as credit, market and legal risks
168
Q

Investing and Financing Cycle
Internal Controls

Inherent Risk Assessment (IR):
Factors affecting inherent risk in this area include:

  • The entities with the security or derivative in question
  • Whether the derivative is stand-alone or an embedded fea____ of a separate agreement
  • External factors affecting management’s assertions such as credit, market and legal risks
A

Investing and Financing Cycle
Internal Controls

Inherent Risk Assessment (IR):
Factors affecting inherent risk in this area include:

  • The entities with the security or derivative in question
  • Whether the derivative is stand-alone or an embedded feature of a separate agreement
  • External factors affecting management’s assertions such as credit, market and legal risks
169
Q

Investing and Financing Cycle
Internal Controls

Inherent Risk Assessment (IR):
Factors affecting inherent risk in this area include:

  • The entities with the security or derivative in question
  • Whether the derivative is stand-alone or an embedded feature of a se_______ agreement
  • External factors affecting management’s assertions such as credit, market and legal risks
A

Investing and Financing Cycle
Internal Controls

Inherent Risk Assessment (IR):
Factors affecting inherent risk in this area include:

  • The entities with the security or derivative in question
  • Whether the derivative is stand-alone or an embedded feature of a separate agreement
  • External factors affecting management’s assertions such as credit, market and legal risks
170
Q

Investing and Financing Cycle
Internal Controls

Inherent Risk Assessment (IR):
Factors affecting inherent risk in this area include:

  • The entities with the security or derivative in question
  • Whether the derivative is stand-alone or an embedded feature of a separate agr_______
  • External factors affecting management’s assertions such as credit, market and legal risks
A

Investing and Financing Cycle
Internal Controls

Inherent Risk Assessment (IR):
Factors affecting inherent risk in this area include:

  • The entities with the security or derivative in question
  • Whether the derivative is stand-alone or an embedded feature of a separate agreement
  • External factors affecting management’s assertions such as credit, market and legal risks
171
Q

Investing and Financing Cycle
Internal Controls

Inherent Risk Assessment (IR):
Factors affecting inherent risk in this area include:

  • The entities with the security or derivative in question
  • Whether the derivative is stand-alone or an embedded feature of a separate agreement
  • Ex______ factors affecting management’s assertions such as credit, market and legal risks
A

Investing and Financing Cycle
Internal Controls

Inherent Risk Assessment (IR):
Factors affecting inherent risk in this area include:

  • The entities with the security or derivative in question
  • Whether the derivative is stand-alone or an embedded feature of a separate agreement
  • External factors affecting management’s assertions such as credit, market and legal risks
172
Q

Investing and Financing Cycle
Internal Controls

Inherent Risk Assessment (IR):
Factors affecting inherent risk in this area include:

  • The entities with the security or derivative in question
  • Whether the derivative is stand-alone or an embedded feature of a separate agreement
  • External fa_____s affecting management’s assertions such as credit, market and legal risks
A

Investing and Financing Cycle
Internal Controls

Inherent Risk Assessment (IR):
Factors affecting inherent risk in this area include:

  • The entities with the security or derivative in question
  • Whether the derivative is stand-alone or an embedded feature of a separate agreement
  • External factors affecting management’s assertions such as credit, market and legal risks
173
Q

Investing and Financing Cycle
Internal Controls

Inherent Risk Assessment (IR):
Factors affecting inherent risk in this area include:

  • The entities with the security or derivative in question
  • Whether the derivative is stand-alone or an embedded feature of a separate agreement
  • External factors affecting management’s as____ions such as credit, market and legal risks
A

Investing and Financing Cycle
Internal Controls

Inherent Risk Assessment (IR):
Factors affecting inherent risk in this area include:

  • The entities with the security or derivative in question
  • Whether the derivative is stand-alone or an embedded feature of a separate agreement
  • External factors affecting management’s assertions such as credit, market and legal risks
174
Q

Investing and Financing Cycle
Internal Controls

Inherent Risk Assessment (IR):
Factors affecting inherent risk in this area include:

  • The entities with the security or derivative in question
  • Whether the derivative is stand-alone or an embedded feature of a separate agreement
  • External factors affecting man________’s assertions such as credit, market and legal risks
A

Investing and Financing Cycle
Internal Controls

Inherent Risk Assessment (IR):
Factors affecting inherent risk in this area include:

  • The entities with the security or derivative in question
  • Whether the derivative is stand-alone or an embedded feature of a separate agreement
  • External factors affecting management’s assertions such as credit, market and legal risks
175
Q

Investing and Financing Cycle
Internal Controls

Inherent Risk Assessment (IR):
Factors affecting inherent risk in this area include:

  • The entities with the security or derivative in question
  • Whether the derivative is stand-alone or an embedded feature of a separate agreement
  • External factors affecting management’s assertions such as cr__it, market and legal r___s
A

Investing and Financing Cycle
Internal Controls

Inherent Risk Assessment (IR):
Factors affecting inherent risk in this area include:

  • The entities with the security or derivative in question
  • Whether the derivative is stand-alone or an embedded feature of a separate agreement
  • External factors affecting management’s assertions such as credit, market and legal risks
176
Q

Investing and Financing Cycle
Internal Controls

Inherent Risk Assessment (IR):
Factors affecting inherent risk in this area include:

  • The entities with the security or derivative in question
  • Whether the derivative is stand-alone or an embedded feature of a separate agreement
  • External factors affecting management’s assertions such as credit, m___et and legal r__ks
A

Investing and Financing Cycle
Internal Controls

Inherent Risk Assessment (IR):
Factors affecting inherent risk in this area include:

  • The entities with the security or derivative in question
  • Whether the derivative is stand-alone or an embedded feature of a separate agreement
  • External factors affecting management’s assertions such as credit, market and legal risks
177
Q

Investing and Financing Cycle
Internal Controls

Inherent Risk Assessment (IR):
Factors affecting inherent risk in this area include:

  • The entities with the security or derivative in question
  • Whether the derivative is stand-alone or an embedded feature of a separate agreement
  • External factors affecting management’s assertions such as credit, market and l__al ri__s
A

Investing and Financing Cycle
Internal Controls

Inherent Risk Assessment (IR):
Factors affecting inherent risk in this area include:

  • The entities with the security or derivative in question
  • Whether the derivative is stand-alone or an embedded feature of a separate agreement
  • External factors affecting management’s assertions such as credit, market and legal risks
178
Q

Investing and Financing Cycle
Internal Controls

Inherent Risk Assessment (IR):
Factors affecting inherent risk in this area include:

  • The entities with the security or derivative in question
  • Whether the derivative is stand-alone or an embedded feature of a separate agreement
  • External factors affecting management’s assertions such as credit, market and legal risks

• Evolving GAAP with res___t to derivatives and investments

A

Investing and Financing Cycle
Internal Controls

Inherent Risk Assessment (IR):
Factors affecting inherent risk in this area include:

  • The entities with the security or derivative in question
  • Whether the derivative is stand-alone or an embedded feature of a separate agreement
  • External factors affecting management’s assertions such as credit, market and legal risks

• Evolving GAAP with respect to derivatives and investments

179
Q

Investing and Financing Cycle
Internal Controls

Inherent Risk Assessment (IR):
Factors affecting inherent risk in this area include:

• Evolving G__P with respect to derivatives and investments

A

Investing and Financing Cycle
Internal Controls

Inherent Risk Assessment (IR):
Factors affecting inherent risk in this area include:

• Evolving GAAP with respect to derivatives and investments

180
Q

Investing and Financing Cycle
Internal Controls

Inherent Risk Assessment (IR):
Factors affecting inherent risk in this area include:

• Evolving GAAP with respect to der______s and investments

A

Investing and Financing Cycle
Internal Controls

Inherent Risk Assessment (IR):
Factors affecting inherent risk in this area include:

• Evolving GAAP with respect to derivatives and investments

181
Q

Investing and Financing Cycle
Internal Controls

Inherent Risk Assessment (IR):
Factors affecting inherent risk in this area include:

• Evolving GAAP with respect to derivatives and inv________s

A

Investing and Financing Cycle
Internal Controls

Inherent Risk Assessment (IR):
Factors affecting inherent risk in this area include:

• Evolving GAAP with respect to derivatives and investments

182
Q

Investing and Financing Cycle
Internal Controls

Inherent Risk Assessment (IR):
Factors affecting inherent risk in this area include:

• Evo__ing GAAP with respect to derivatives and investments

A

Investing and Financing Cycle
Internal Controls

Inherent Risk Assessment (IR):
Factors affecting inherent risk in this area include:

• Evolving GAAP with respect to derivatives and investments

183
Q

Investing and Financing Cycle
Internal Controls

Inherent Risk Assessment (IR):
Factors affecting inherent risk in this area include:

  • Evolving GAAP with respect to derivatives and investments
  • Reliance o_ outside parties
A

Investing and Financing Cycle
Internal Controls

Inherent Risk Assessment (IR):
Factors affecting inherent risk in this area include:

  • Evolving GAAP with respect to derivatives and investments
  • Reliance on outside parties
184
Q

Investing and Financing Cycle
Internal Controls

Inherent Risk Assessment (IR):
Factors affecting inherent risk in this area include:

• Reli____ on outside parties

A

Investing and Financing Cycle
Internal Controls

Inherent Risk Assessment (IR):
Factors affecting inherent risk in this area include:

• Reliance on outside parties

185
Q

Investing and Financing Cycle
Internal Controls

Inherent Risk Assessment (IR):
Factors affecting inherent risk in this area include:

• Reliance on out____ parties

A

Investing and Financing Cycle
Internal Controls

Inherent Risk Assessment (IR):
Factors affecting inherent risk in this area include:

• Reliance on outside parties

186
Q

Investing and Financing Cycle
Internal Controls

Inherent Risk Assessment (IR):
Factors affecting inherent risk in this area include:

• Reliance on outside p___ies

A

Investing and Financing Cycle
Internal Controls

Inherent Risk Assessment (IR):
Factors affecting inherent risk in this area include:

• Reliance on outside parties

187
Q

Investing and Financing Cycle
Internal Controls

Inherent Risk Assessment (IR):
Factors affecting inherent risk in this area include:

  • Reliance on outside parties
  • Assumptions about fut___ conditions
A

Investing and Financing Cycle
Internal Controls

Inherent Risk Assessment (IR):
Factors affecting inherent risk in this area include:

  • Reliance on outside parties
  • Assumptions about future conditions
188
Q

Investing and Financing Cycle
Internal Controls

Inherent Risk Assessment (IR):
Factors affecting inherent risk in this area include:

• Ass_______s about future conditions

A

Investing and Financing Cycle
Internal Controls

Inherent Risk Assessment (IR):
Factors affecting inherent risk in this area include:

• Assumptions about future conditions

189
Q

Investing and Financing Cycle
Internal Controls

Inherent Risk Assessment (IR):
Factors affecting inherent risk in this area include:

• Assumptions about future con______s

A

Investing and Financing Cycle
Internal Controls

Inherent Risk Assessment (IR):
Factors affecting inherent risk in this area include:

• Assumptions about future conditions

190
Q

Investing and Financing Cycle
Internal Controls

Inherent Risk Assessment (IR):
Factors affecting inherent risk in this area include:

  • Evolving GA__ with respect to derivatives and investments
  • Reliance on outside parties
  • Assumptions about future conditions
A

Investing and Financing Cycle
Internal Controls

Inherent Risk Assessment (IR):
Factors affecting inherent risk in this area include:

  • Evolving GAAP with respect to derivatives and investments
  • Reliance on outside parties
  • Assumptions about future conditions
191
Q

Investing and Financing Cycle
Internal Controls

Inherent Risk Assessment (IR):
Factors affecting inherent risk in this area include:

  • Evolving GAAP with respect to de_______s and investments
  • Reliance on outside parties
  • Assumptions about future conditions
A

Investing and Financing Cycle
Internal Controls

Inherent Risk Assessment (IR):
Factors affecting inherent risk in this area include:

  • Evolving GAAP with respect to derivatives and investments
  • Reliance on outside parties
  • Assumptions about future conditions
192
Q

Investing and Financing Cycle
Internal Controls

Inherent Risk Assessment (IR):
Factors affecting inherent risk in this area include:

  • Evolving GAAP with respect to derivatives and investments
  • Re_______ on outside parties
  • Assumptions about future conditions
A

Investing and Financing Cycle
Internal Controls

Inherent Risk Assessment (IR):
Factors affecting inherent risk in this area include:

  • Evolving GAAP with respect to derivatives and investments
  • Reliance on outside parties
  • Assumptions about future conditions
193
Q

Investing and Financing Cycle
Internal Controls

Inherent Risk Assessment (IR):
Factors affecting inherent risk in this area include:

  • Evolving GAAP with respect to derivatives and investments
  • Reliance on out____ parties
  • Assumptions about future conditions
A

Investing and Financing Cycle
Internal Controls

Inherent Risk Assessment (IR):
Factors affecting inherent risk in this area include:

  • Evolving GAAP with respect to derivatives and investments
  • Reliance on outside parties
  • Assumptions about future conditions
194
Q

Investing and Financing Cycle
Internal Controls

Inherent Risk Assessment (IR):
Factors affecting inherent risk in this area include:

  • Evolving GAAP with respect to derivatives and investments
  • Reliance on outside pa__ies
  • Assumptions about future conditions
A

Investing and Financing Cycle
Internal Controls

Inherent Risk Assessment (IR):
Factors affecting inherent risk in this area include:

  • Evolving GAAP with respect to derivatives and investments
  • Reliance on outside parties
  • Assumptions about future conditions
195
Q

Investing and Financing Cycle
Internal Controls

Inherent Risk Assessment (IR):
Factors affecting inherent risk in this area include:

  • Evolving GAAP with respect to derivatives and investments
  • Reliance on outside parties
  • Ass______ns about future conditions
A

Investing and Financing Cycle
Internal Controls

Inherent Risk Assessment (IR):
Factors affecting inherent risk in this area include:

  • Evolving GAAP with respect to derivatives and investments
  • Reliance on outside parties
  • Assumptions about future conditions
196
Q

Investing and Financing Cycle
Internal Controls

Inherent Risk Assessment (IR):
Factors affecting inherent risk in this area include:

  • Evolving GAAP with respect to derivatives and investments
  • Reliance on outside parties
  • Assumptions about fu____ conditions
A

Investing and Financing Cycle
Internal Controls

Inherent Risk Assessment (IR):
Factors affecting inherent risk in this area include:

  • Evolving GAAP with respect to derivatives and investments
  • Reliance on outside parties
  • Assumptions about future conditions
197
Q

Investing and Financing Cycle
Internal Controls

Inherent Risk Assessment (IR):
Factors affecting inherent risk in this area include:

  • Evolving GAAP with respect to derivatives and investments
  • Reliance on outside parties
  • Assumptions about future con_____s
A

Investing and Financing Cycle
Internal Controls

Inherent Risk Assessment (IR):
Factors affecting inherent risk in this area include:

  • Evolving GAAP with respect to derivatives and investments
  • Reliance on outside parties
  • Assumptions about future conditions
198
Q

Investing and Financing Cycle
Internal Controls

Inherent Risk Assessment (IR):
Factors affecting inherent risk in this area include:

  • Evolving GAAP with respect to derivatives and in_________s
  • Reliance on outside parties
  • Assumptions about future conditions
A

Investing and Financing Cycle
Internal Controls

Inherent Risk Assessment (IR):
Factors affecting inherent risk in this area include:

  • Evolving GAAP with respect to derivatives and investments
  • Reliance on outside parties
  • Assumptions about future conditions
199
Q

Investing and Financing Cycle
Internal Controls

Inherent Risk Assessment (IR):
Factors affecting inherent risk in this area include:

  • M_________’s investment obj________s
  • Complexity of the security or derivative instrument
  • Whether the transaction giving rise to the security involved cash
  • The entities with the security or derivative in question
  • Whether the derivative is stand-alone or an embedded feature of a separate agreement
  • External factors affecting management’s assertions such as credit, market and legal risks
  • Evolving GAAP with respect to derivatives and investments
  • Reliance on outside parties
  • Assumptions about future conditions
A

Investing and Financing Cycle
Internal Controls

Inherent Risk Assessment (IR):
Factors affecting inherent risk in this area include:

  • Management’s investment objectives
  • Complexity of the security or derivative instrument
  • Whether the transaction giving rise to the security involved cash
  • The entities with the security or derivative in question
  • Whether the derivative is stand-alone or an embedded feature of a separate agreement
  • External factors affecting management’s assertions such as credit, market and legal risks
  • Evolving GAAP with respect to derivatives and investments
  • Reliance on outside parties
  • Assumptions about future conditions
200
Q

Investing and Financing Cycle
Internal Controls

Inherent Risk Assessment (IR):
Factors affecting inherent risk in this area include:

  • Management’s investment objectives
  • Com____ity of the se___ity or derivative instrument
  • Whether the transaction giving rise to the security involved cash
  • The entities with the security or derivative in question
  • Whether the derivative is stand-alone or an embedded feature of a separate agreement
  • External factors affecting management’s assertions such as credit, market and legal risks
  • Evolving GAAP with respect to derivatives and investments
  • Reliance on outside parties
  • Assumptions about future conditions
A

Investing and Financing Cycle
Internal Controls

Inherent Risk Assessment (IR):
Factors affecting inherent risk in this area include:

  • Management’s investment objectives
  • Complexity of the security or derivative instrument
  • Whether the transaction giving rise to the security involved cash
  • The entities with the security or derivative in question
  • Whether the derivative is stand-alone or an embedded feature of a separate agreement
  • External factors affecting management’s assertions such as credit, market and legal risks
  • Evolving GAAP with respect to derivatives and investments
  • Reliance on outside parties
  • Assumptions about future conditions
201
Q

Investing and Financing Cycle
Internal Controls

Inherent Risk Assessment (IR):
Factors affecting inherent risk in this area include:

  • Management’s investment objectives
  • Com____ity of the security or deri______ instrument
  • Whether the transaction giving rise to the security involved cash
  • The entities with the security or derivative in question
  • Whether the derivative is stand-alone or an embedded feature of a separate agreement
  • External factors affecting management’s assertions such as credit, market and legal risks
  • Evolving GAAP with respect to derivatives and investments
  • Reliance on outside parties
  • Assumptions about future conditions
A

Investing and Financing Cycle
Internal Controls

Inherent Risk Assessment (IR):
Factors affecting inherent risk in this area include:

  • Management’s investment objectives
  • Complexity of the security or derivative instrument
  • Whether the transaction giving rise to the security involved cash
  • The entities with the security or derivative in question
  • Whether the derivative is stand-alone or an embedded feature of a separate agreement
  • External factors affecting management’s assertions such as credit, market and legal risks
  • Evolving GAAP with respect to derivatives and investments
  • Reliance on outside parties
  • Assumptions about future conditions
202
Q

Investing and Financing Cycle
Internal Controls

Inherent Risk Assessment (IR):
Factors affecting inherent risk in this area include:

  • Management’s investment objectives
  • Complexity of the security or derivative instrument
  • Whether the tran______ giving rise to the security involved c___
  • The entities with the security or derivative in question
  • Whether the derivative is stand-alone or an embedded feature of a separate agreement
  • External factors affecting management’s assertions such as credit, market and legal risks
  • Evolving GAAP with respect to derivatives and investments
  • Reliance on outside parties
  • Assumptions about future conditions
A

Investing and Financing Cycle
Internal Controls

Inherent Risk Assessment (IR):
Factors affecting inherent risk in this area include:

  • Management’s investment objectives
  • Complexity of the security or derivative instrument
  • Whether the transaction giving rise to the security involved cash
  • The entities with the security or derivative in question
  • Whether the derivative is stand-alone or an embedded feature of a separate agreement
  • External factors affecting management’s assertions such as credit, market and legal risks
  • Evolving GAAP with respect to derivatives and investments
  • Reliance on outside parties
  • Assumptions about future conditions
203
Q

Investing and Financing Cycle
Internal Controls

Inherent Risk Assessment (IR):
Factors affecting inherent risk in this area include:

  • Management’s investment objectives
  • Complexity of the security or derivative instrument
  • Whether the transaction giving rise to the security involved cash
  • The entities with the se___ity or derivative in qu___ion
  • Whether the derivative is stand-alone or an embedded feature of a separate agreement
  • External factors affecting management’s assertions such as credit, market and legal risks
  • Evolving GAAP with respect to derivatives and investments
  • Reliance on outside parties
  • Assumptions about future conditions
A

Investing and Financing Cycle
Internal Controls

Inherent Risk Assessment (IR):
Factors affecting inherent risk in this area include:

  • Management’s investment objectives
  • Complexity of the security or derivative instrument
  • Whether the transaction giving rise to the security involved cash
  • The entities with the security or derivative in question
  • Whether the derivative is stand-alone or an embedded feature of a separate agreement
  • External factors affecting management’s assertions such as credit, market and legal risks
  • Evolving GAAP with respect to derivatives and investments
  • Reliance on outside parties
  • Assumptions about future conditions
204
Q

Investing and Financing Cycle
Internal Controls

Inherent Risk Assessment (IR):
Factors affecting inherent risk in this area include:

  • Management’s investment objectives
  • Complexity of the security or derivative instrument
  • Whether the transaction giving rise to the security involved cash
  • The entities with the security or deri_______ in qu___ion
  • Whether the derivative is stand-alone or an embedded feature of a separate agreement
  • External factors affecting management’s assertions such as credit, market and legal risks
  • Evolving GAAP with respect to derivatives and investments
  • Reliance on outside parties
  • Assumptions about future conditions
A

Investing and Financing Cycle
Internal Controls

Inherent Risk Assessment (IR):
Factors affecting inherent risk in this area include:

  • Management’s investment objectives
  • Complexity of the security or derivative instrument
  • Whether the transaction giving rise to the security involved cash
  • The entities with the security or derivative in question
  • Whether the derivative is stand-alone or an embedded feature of a separate agreement
  • External factors affecting management’s assertions such as credit, market and legal risks
  • Evolving GAAP with respect to derivatives and investments
  • Reliance on outside parties
  • Assumptions about future conditions
205
Q

Investing and Financing Cycle
Internal Controls

Inherent Risk Assessment (IR):
Factors affecting inherent risk in this area include:

  • Management’s investment objectives
  • Complexity of the security or derivative instrument
  • Whether the transaction giving rise to the security involved cash
  • The entities with the security or derivative in question
  • Whether the deri_____ is stand-al___ or an embedded feature of a separate agreement
  • External factors affecting management’s assertions such as credit, market and legal risks
  • Evolving GAAP with respect to derivatives and investments
  • Reliance on outside parties
  • Assumptions about future conditions
A

Investing and Financing Cycle
Internal Controls

Inherent Risk Assessment (IR):
Factors affecting inherent risk in this area include:

  • Management’s investment objectives
  • Complexity of the security or derivative instrument
  • Whether the transaction giving rise to the security involved cash
  • The entities with the security or derivative in question
  • Whether the derivative is stand-alone or an embedded feature of a separate agreement
  • External factors affecting management’s assertions such as credit, market and legal risks
  • Evolving GAAP with respect to derivatives and investments
  • Reliance on outside parties
  • Assumptions about future conditions
206
Q

Investing and Financing Cycle
Internal Controls

Inherent Risk Assessment (IR):
Factors affecting inherent risk in this area include:

  • Management’s investment objectives
  • Complexity of the security or derivative instrument
  • Whether the transaction giving rise to the security involved cash
  • The entities with the security or derivative in question
  • Whether the derivative is stand-alone or an em___ded fea____ of a separate agreement
  • External factors affecting management’s assertions such as credit, market and legal risks
  • Evolving GAAP with respect to derivatives and investments
  • Reliance on outside parties
  • Assumptions about future conditions
A

Investing and Financing Cycle
Internal Controls

Inherent Risk Assessment (IR):
Factors affecting inherent risk in this area include:

  • Management’s investment objectives
  • Complexity of the security or derivative instrument
  • Whether the transaction giving rise to the security involved cash
  • The entities with the security or derivative in question
  • Whether the derivative is stand-alone or an embedded feature of a separate agreement
  • External factors affecting management’s assertions such as credit, market and legal risks
  • Evolving GAAP with respect to derivatives and investments
  • Reliance on outside parties
  • Assumptions about future conditions
207
Q

Investing and Financing Cycle
Internal Controls

Inherent Risk Assessment (IR):
Factors affecting inherent risk in this area include:

  • Management’s investment objectives
  • Complexity of the security or derivative instrument
  • Whether the transaction giving rise to the security involved cash
  • The entities with the security or derivative in question
  • Whether the derivative is stand-alone or an embedded feature of a sep______ agre______
  • External factors affecting management’s assertions such as credit, market and legal risks
  • Evolving GAAP with respect to derivatives and investments
  • Reliance on outside parties
  • Assumptions about future conditions
A

Investing and Financing Cycle
Internal Controls

Inherent Risk Assessment (IR):
Factors affecting inherent risk in this area include:

  • Management’s investment objectives
  • Complexity of the security or derivative instrument
  • Whether the transaction giving rise to the security involved cash
  • The entities with the security or derivative in question
  • Whether the derivative is stand-alone or an embedded feature of a separate agreement
  • External factors affecting management’s assertions such as credit, market and legal risks
  • Evolving GAAP with respect to derivatives and investments
  • Reliance on outside parties
  • Assumptions about future conditions
208
Q

Investing and Financing Cycle
Internal Controls

Inherent Risk Assessment (IR):
Factors affecting inherent risk in this area include:

  • Management’s investment objectives
  • Complexity of the security or derivative instrument
  • Whether the transaction giving rise to the security involved cash
  • The entities with the security or derivative in question
  • Whether the derivative is stand-alone or an embedded feature of a separate agreement
  • Exte____ fa____s affecting management’s assertions such as credit, market and legal risks
  • Evolving GAAP with respect to derivatives and investments
  • Reliance on outside parties
  • Assumptions about future conditions
A

Investing and Financing Cycle
Internal Controls

Inherent Risk Assessment (IR):
Factors affecting inherent risk in this area include:

  • Management’s investment objectives
  • Complexity of the security or derivative instrument
  • Whether the transaction giving rise to the security involved cash
  • The entities with the security or derivative in question
  • Whether the derivative is stand-alone or an embedded feature of a separate agreement
  • External factors affecting management’s assertions such as credit, market and legal risks
  • Evolving GAAP with respect to derivatives and investments
  • Reliance on outside parties
  • Assumptions about future conditions
209
Q

Investing and Financing Cycle
Internal Controls

Inherent Risk Assessment (IR):
Factors affecting inherent risk in this area include:

  • Management’s investment objectives
  • Complexity of the security or derivative instrument
  • Whether the transaction giving rise to the security involved cash
  • The entities with the security or derivative in question
  • Whether the derivative is stand-alone or an embedded feature of a separate agreement
  • External factors affecting ma________t’s ass______ such as credit, market and legal risks
  • Evolving GAAP with respect to derivatives and investments
  • Reliance on outside parties
  • Assumptions about future conditions
A

Investing and Financing Cycle
Internal Controls

Inherent Risk Assessment (IR):
Factors affecting inherent risk in this area include:

  • Management’s investment objectives
  • Complexity of the security or derivative instrument
  • Whether the transaction giving rise to the security involved cash
  • The entities with the security or derivative in question
  • Whether the derivative is stand-alone or an embedded feature of a separate agreement
  • External factors affecting management’s assertions such as credit, market and legal risks
  • Evolving GAAP with respect to derivatives and investments
  • Reliance on outside parties
  • Assumptions about future conditions
210
Q

Investing and Financing Cycle
Internal Controls

Inherent Risk Assessment (IR):
Factors affecting inherent risk in this area include:

  • Management’s investment objectives
  • Complexity of the security or derivative instrument
  • Whether the transaction giving rise to the security involved cash
  • The entities with the security or derivative in question
  • Whether the derivative is stand-alone or an embedded feature of a separate agreement
  • External factors affecting management’s assertions such as credit, market and legal ri__s
  • Evolving G____ with respect to derivatives and investments
  • Reliance on outside parties
  • Assumptions about future conditions
A

Investing and Financing Cycle
Internal Controls

Inherent Risk Assessment (IR):
Factors affecting inherent risk in this area include:

  • Management’s investment objectives
  • Complexity of the security or derivative instrument
  • Whether the transaction giving rise to the security involved cash
  • The entities with the security or derivative in question
  • Whether the derivative is stand-alone or an embedded feature of a separate agreement
  • External factors affecting management’s assertions such as credit, market and legal risks
  • Evolving GAAP with respect to derivatives and investments
  • Reliance on outside parties
  • Assumptions about future conditions
211
Q

Investing and Financing Cycle
Internal Controls

Inherent Risk Assessment (IR):
Factors affecting inherent risk in this area include:

  • Management’s investment objectives
  • Complexity of the security or derivative instrument
  • Whether the transaction giving rise to the security involved cash
  • The entities with the security or derivative in question
  • Whether the derivative is stand-alone or an embedded feature of a separate agreement
  • External factors affecting management’s assertions such as credit, market and legal risks
  • Evolving GAAP with respect to deri______ and inv_______s
  • Reliance on outside parties
  • Assumptions about future conditions
A

Investing and Financing Cycle
Internal Controls

Inherent Risk Assessment (IR):
Factors affecting inherent risk in this area include:

  • Management’s investment objectives
  • Complexity of the security or derivative instrument
  • Whether the transaction giving rise to the security involved cash
  • The entities with the security or derivative in question
  • Whether the derivative is stand-alone or an embedded feature of a separate agreement
  • External factors affecting management’s assertions such as credit, market and legal risks
  • Evolving GAAP with respect to derivatives and investments
  • Reliance on outside parties
  • Assumptions about future conditions
212
Q

Investing and Financing Cycle
Internal Controls

Inherent Risk Assessment (IR):
Factors affecting inherent risk in this area include:

  • Management’s investment objectives
  • Complexity of the security or derivative instrument
  • Whether the transaction giving rise to the security involved cash
  • The entities with the security or derivative in question
  • Whether the derivative is stand-alone or an embedded feature of a separate agreement
  • External factors affecting management’s assertions such as credit, market and legal risks
  • Evolving GAAP with respect to derivatives and investments
  • Reli_____ on out____ parties
  • Assumptions about future conditions
A

Investing and Financing Cycle
Internal Controls

Inherent Risk Assessment (IR):
Factors affecting inherent risk in this area include:

  • Management’s investment objectives
  • Complexity of the security or derivative instrument
  • Whether the transaction giving rise to the security involved cash
  • The entities with the security or derivative in question
  • Whether the derivative is stand-alone or an embedded feature of a separate agreement
  • External factors affecting management’s assertions such as credit, market and legal risks
  • Evolving GAAP with respect to derivatives and investments
  • Reliance on outside parties
  • Assumptions about future conditions
213
Q

Investing and Financing Cycle
Internal Controls

Inherent Risk Assessment (IR):
Factors affecting inherent risk in this area include:

  • Management’s investment objectives
  • Complexity of the security or derivative instrument
  • Whether the transaction giving rise to the security involved cash
  • The entities with the security or derivative in question
  • Whether the derivative is stand-alone or an embedded feature of a separate agreement
  • External factors affecting management’s assertions such as credit, market and legal risks
  • Evolving GAAP with respect to derivatives and investments
  • Reliance on outside parties
  • As_______s about fu____ conditions
A

Investing and Financing Cycle
Internal Controls

Inherent Risk Assessment (IR):
Factors affecting inherent risk in this area include:

  • Management’s investment objectives
  • Complexity of the security or derivative instrument
  • Whether the transaction giving rise to the security involved cash
  • The entities with the security or derivative in question
  • Whether the derivative is stand-alone or an embedded feature of a separate agreement
  • External factors affecting management’s assertions such as credit, market and legal risks
  • Evolving GAAP with respect to derivatives and investments
  • Reliance on outside parties
  • Assumptions about future conditions
214
Q

RACE
(mnemonic for account balances)

• R = _______ and __________

A

RACE
(mnemonic for account balances)

• R = Rights and obligations

215
Q

RACE
(mnemonic for account balances)

• A = __________ and ___________

A

RACE
(mnemonic for account balances)

• A = Allocation and Valuation

216
Q

RACE
(mnemonic for account balances)

• C = _____________

A

RACE
(mnemonic for account balances)

• C = Completeness

217
Q

RACE
(mnemonic for account balances)

• E = _________

A

RACE
(mnemonic for account balances)

• E = Existence

218
Q

RACE
(mnemonic for account balances)

• R =

A

RACE
(mnemonic for account balances)

• R = Rights and obligations

219
Q

RACE
(mnemonic for account balances)

• A =

A

RACE
(mnemonic for account balances)

• A = Allocation and Valuation

220
Q

RACE
(mnemonic for account balances)

• C =

A

RACE
(mnemonic for account balances)

• C = Completeness

221
Q

RACE
(mnemonic for account balances)

• E =

A

RACE
(mnemonic for account balances)

• E = Existence

222
Q

RACE
(mnemonic for account balances)

  • R =
  • A =
A

RACE
(mnemonic for account balances)

  • R = Rights and obligations
  • A = Allocation and Valuation
223
Q

RACE
(mnemonic for account balances)

  • C = Completeness
  • E = Existence
A

RACE
(mnemonic for account balances)

  • C = Completeness
  • E = Existence
224
Q

Which assertion with regard to account balances support by the examples of controls in the following paragraph?

A

Which assertion with regard to account balances support by the examples of controls in the following paragraph?

225
Q

Which assertion with regard to account balances supported by the examples of controls below?

(RACE)

“Management examines investment securities to verify that they are registered in the name of the entity or confirms such with custodians of the investments.”

A

Which assertion with regard to account balances supported by the examples of controls below?

(RACE)

• Rights and obligations

– Management examines investment securities to verify that they are registered in the name of the entity or confirms such with custodians of the investments.

226
Q

Which assertion with regard to account balances supported by the examples of controls below?

(RACE)

“The recorded values of investments are periodically compared to current market prices.”

A

Which assertion with regard to account balances supported by the examples of controls below?

(RACE)

• Allocation and Valuation

– The recorded values of investments are periodically compared to current market prices.

227
Q

Which assertion with regard to account balances supported by the examples of controls below?

(RACE)

“The investments on hand and held by custodians are periodically reconciled to their recorded amounts.”

A

Which assertion with regard to account balances supported by the examples of controls below?

(RACE)

• Completeness

– The investments on hand and held by custodians are periodically reconciled to their recorded amounts.

228
Q

Which assertion with regard to account balances supported by the examples of controls below?

(RACE)

“The entity maintains physical custody of investments in a secure physical location or they are maintained in the custody of a trustee, which can be confirmed.”

A

Which assertion with regard to account balances supported by the examples of controls below?

(RACE)

• Existence

– The entity maintains physical custody of investments in a secure physical location or they are maintained in the custody of a trustee, which can be confirmed.

229
Q

Who will typically apply the control procedures (RACE)?

RACE mnemonic for account balances:

  • Rights and obligations
  • Allocation and Valuation
  • Completeness
  • Existence
A

Who will typically apply the control procedures (RACE)?

Answer: Management
or other employees at a very high level

RACE mnemonic for account balances:

  • Rights and obligations
  • Allocation and Valuation
  • Completeness
  • Existence

The procedures will typically be applied by management or other employees at a very high level,

reflecting the extremely large value and great danger of fraud in connection with marketable securities.

230
Q

Is it generally best to have an independent trustee maintain possession of securities for the company?

A

Is it generally best to have an independent trustee maintain possession of securities for the company?

Answer: Yes!

In fact, it is generally best to have an independent trustee maintain possession of securities

so that they are safeguarded from all misappropriation by company employees.

231
Q

Why it is generally best to have an independent trustee maintain possession of securities for the company?

A

Why it is generally best to have an independent trustee maintain possession of securities for the company?

Answer:
Because the securities can be safeguarded from all misappropriation by company employees.

In fact, it is generally best to have an independent trustee maintain possession of securities

so that they are safeguarded from all misappropriation by company employees.

232
Q

Who should maintain possession of securities so that the securities are safeguarded from all misappropriation by company employees?

A

Who should maintain possession of securities so that the securities are safeguarded from all misappropriation by company employees?

Answer: An independent trustee

In fact, it is generally best to have an independent trustee maintain possession of securities

so that they are safeguarded from all misappropriation by company employees.

233
Q

AU-C 501 presents guidance on __________

Derivative instruments,
hedging activities, and
investments in both debt and equity securities.

A

AU-C 501 presents guidance on auditing

Derivative instruments,
hedging activities, and
investments in both debt and equity securities.

234
Q

AU-C 501 presents guidance on auditing

_________ instruments,
hedging activities, and
investments in both debt and equity securities.

A

AU-C 501 presents guidance on auditing

Derivative instruments,
hedging activities, and
investments in both debt and equity securities.

235
Q

AU-C 501 presents guidance on auditing

Derivative ___________,
hedging activities, and
investments in both debt and equity securities.

A

AU-C 501 presents guidance on auditing

Derivative instruments,
hedging activities, and
investments in both debt and equity securities.

236
Q

AU-C 501 presents guidance on auditing

Derivative instruments,
_______ activities, and
investments in both debt and equity securities.

A

AU-C 501 presents guidance on auditing

Derivative instruments,
hedging activities, and
investments in both debt and equity securities.

237
Q

AU-C 501 presents guidance on auditing

Derivative instruments,
hedging ________, and
investments in both debt and equity securities.

A

AU-C 501 presents guidance on auditing

Derivative instruments,
hedging activities, and
investments in both debt and equity securities.

238
Q

AU-C 501 presents guidance on auditing

Derivative instruments,
hedging activities, and
_________ in both debt and equity securities.

A

AU-C 501 presents guidance on auditing

Derivative instruments,
hedging activities, and
investments in both debt and equity securities.

239
Q

AU-C 501 presents guidance on auditing

Derivative instruments,
hedging activities, and
investments in both ____ and equity securities.

A

AU-C 501 presents guidance on auditing

Derivative instruments,
hedging activities, and
investments in both debt and equity securities.

240
Q

AU-C 501 presents guidance on auditing

Derivative instruments,
hedging activities, and
investments in both debt and equity ________.

A

AU-C 501 presents guidance on auditing

Derivative instruments,
hedging activities, and
investments in both debt and equity securities.

241
Q

AU-C 501 presents ________ on auditing

Derivative instruments,
hedging activities, and
investments in both debt and equity securities.

A

AU-C 501 presents guidance on auditing

Derivative instruments,
hedging activities, and
investments in both debt and equity securities.

242
Q

AU-C 501 presents guidance on auditing

Derivative ________,
hedging activities, and
investments in both debt and equity _________.

A

AU-C 501 presents guidance on auditing

Derivative instruments,
hedging activities, and
investments in both debt and equity securities.

243
Q

AU-C 501 presents guidance on auditing

Derivative __________,
hedging _______, and
investments in both debt and equity securities.

A

AU-C 501 presents guidance on auditing

Derivative instruments,
hedging activities, and
investments in both debt and equity securities.

244
Q

AU-C 501 presents guidance on auditing

___________ instruments,
________ activities, and
investments in both debt and equity securities.

A

AU-C 501 presents guidance on auditing

Derivative instruments,
hedging activities, and
investments in both debt and equity securities.

245
Q

AU-C 501 presents guidance on auditing

Derivative instruments,
hedging activities, and
investments in both _____ and ______ securities.

A

AU-C 501 presents guidance on auditing

Derivative instruments,
hedging activities, and
investments in both debt and equity securities.

246
Q

AU-C 501 presents guidance on auditing

Derivative instruments,
hedging activities, and
___________ in both debt and equity __________.

A

AU-C 501 presents guidance on auditing

Derivative instruments,
hedging activities, and
investments in both debt and equity securities.

247
Q

AU-C 501 presents guidance on auditing

____________________,
hedging activities, and
investments in both debt and equity securities.

A

AU-C 501 presents guidance on auditing

Derivative instruments,
hedging activities, and
investments in both debt and equity securities.

248
Q

AU-C 501 presents guidance on auditing

Derivative instruments,
________________, and
investments in both debt and equity securities.

A

AU-C 501 presents guidance on auditing

Derivative instruments,
hedging activities, and
investments in both debt and equity securities.

249
Q

AU-C 501 presents guidance on auditing

Derivative instruments,
hedging activities, and
investments in ____ debt and equity __________.

A

AU-C 501 presents guidance on auditing

Derivative instruments,
hedging activities, and
investments in both debt and equity securities.

250
Q

Applicable __________ standards are in
the FASB Codification,
Topic 815,
Derivatives and Hedging.

A

Applicable accounting standards are in
the FASB Codification,
Topic 815,
Derivatives and Hedging.

251
Q

Applicable accounting standards are in
the F___B Codification,
Topic 815,
Derivatives and Hedging.

A

Applicable accounting standards are in
the FASB Codification,
Topic 815,
Derivatives and Hedging.

252
Q

Applicable accounting standards are in
the FASB Codification,
Topic 815,
_________ and Hedging.

A

Applicable accounting standards are in
the FASB Codification,
Topic 815,
Derivatives and Hedging.

253
Q

Applicable accounting standards are in
the FASB Codification,
Topic 815,
Derivatives and _______.

A

Applicable accounting standards are in
the FASB Codification,
Topic 815,
Derivatives and Hedging.

254
Q

Applicable accounting __________ are in
the FASB Codification,
Topic 815,
Derivatives and Hedging.

A

Applicable accounting standards are in
the FASB Codification,
Topic 815,
Derivatives and Hedging.

255
Q

Why inherent risk (IR) associated with investments, particularly marketable securities, is generally high?

A

Why inherent risk (IR) associated with investments, particularly marketable securities, is generally high?

Answer:

Because
1) the value of marketable securities is readily determinable
and
2) they are frequently easily transferrable.

Inherent risk associated with investments, particularly marketable securities, is generally high,

largely due to the fact that their value is readily determinable and they are frequently easily transferrable.

256
Q

Why inherent risk (IR) associated with investments, particularly marketable securities, is generally high?

Because

1) the value of marketable __________ is readily determinable

and

2) they are frequently easily transferrable.

A

Why inherent risk (IR) associated with investments, particularly marketable securities, is generally high?

Answer:

Because
1) the value of marketable securities is readily determinable
and
2) they are frequently easily transferrable.

Inherent risk associated with investments, particularly marketable securities, is generally high,

largely due to the fact that their value is readily determinable and they are frequently easily transferrable.

257
Q

Why inherent risk (IR) associated with investments, particularly marketable securities, is generally high?

Because

1) the value of marketable securities is ______ determinable

and

2) they are frequently easily transferrable.

A

Why inherent risk (IR) associated with investments, particularly marketable securities, is generally high?

Answer:

Because
1) the value of marketable securities is readily determinable
and
2) they are frequently easily transferrable.

Inherent risk associated with investments, particularly marketable securities, is generally high,

largely due to the fact that their value is readily determinable and they are frequently easily transferrable.

258
Q

Why inherent risk (IR) associated with investments, particularly marketable securities, is generally high?

Because

1) the _____ of marketable securities is readily determinable

and

2) they are frequently easily transferrable.

A

Why inherent risk (IR) associated with investments, particularly marketable securities, is generally high?

Answer:

Because
1) the value of marketable securities is readily determinable
and
2) they are frequently easily transferrable.

Inherent risk associated with investments, particularly marketable securities, is generally high,

largely due to the fact that their value is readily determinable and they are frequently easily transferrable.

259
Q

Why inherent risk (IR) associated with investments, particularly marketable securities, is generally high?

Because

1) the value of __________ securities is readily determinable

and

2) they are frequently easily transferrable.

A

Why inherent risk (IR) associated with investments, particularly marketable securities, is generally high?

Answer:

Because
1) the value of marketable securities is readily determinable
and
2) they are frequently easily transferrable.

Inherent risk associated with investments, particularly marketable securities, is generally high,

largely due to the fact that their value is readily determinable and they are frequently easily transferrable.

260
Q

Why inherent risk (IR) associated with investments, particularly marketable securities, is generally high?

Because

1) the value of marketable securities is readily ______________

and

2) they are frequently easily transferrable.

A

Why inherent risk (IR) associated with investments, particularly marketable securities, is generally high?

Answer:

Because
1) the value of marketable securities is readily determinable
and
2) they are frequently easily transferrable.

Inherent risk associated with investments, particularly marketable securities, is generally high,

largely due to the fact that their value is readily determinable and they are frequently easily transferrable.

261
Q

Why inherent risk (IR) associated with investments, particularly marketable securities, is generally high?

Because

1) the value of marketable securities is readily determinable

and

2) they are frequently _____ transferrable.

A

Why inherent risk (IR) associated with investments, particularly marketable securities, is generally high?

Answer:

Because
1) the value of marketable securities is readily determinable
and
2) they are frequently easily transferrable.

Inherent risk associated with investments, particularly marketable securities, is generally high,

largely due to the fact that their value is readily determinable and they are frequently easily transferrable.

262
Q

Why inherent risk (IR) associated with investments, particularly marketable securities, is generally high?

Because

1) the value of marketable securities is readily determinable

and

2) they are frequently easily ___________.

A

Why inherent risk (IR) associated with investments, particularly marketable securities, is generally high?

Answer:

Because
1) the value of marketable securities is readily determinable
and
2) they are frequently easily transferrable.

Inherent risk associated with investments, particularly marketable securities, is generally high,

largely due to the fact that their value is readily determinable and they are frequently easily transferrable.

263
Q

Why inherent risk (IR) associated with investments, particularly marketable securities, is generally high?

Because

1) the value of marketable securities is readily determinable

and

2) they are __________ easily transferrable.

A

Why inherent risk (IR) associated with investments, particularly marketable securities, is generally high?

Answer:

Because
1) the value of marketable securities is readily determinable
and
2) they are frequently easily transferrable.

Inherent risk associated with investments, particularly marketable securities, is generally high,

largely due to the fact that their value is readily determinable and they are frequently easily transferrable.

264
Q

Why inherent risk (IR) associated with investments, particularly marketable securities, is generally high?

Because

1) the ______ of marketable securities is ________ _________________

and

2) they are frequently easily _____________.

A

Why inherent risk (IR) associated with investments, particularly marketable securities, is generally high?

Answer:

Because
1) the value of marketable securities is readily determinable
and
2) they are frequently easily transferrable.

Inherent risk associated with investments, particularly marketable securities, is generally high,

largely due to the fact that their value is readily determinable and they are frequently easily transferrable.

265
Q

Why inherent risk (IR) associated with investments, particularly marketable securities, is generally high?

A

Why inherent risk (IR) associated with investments, particularly marketable securities, is generally high?

Answer:

Because
1) the value of marketable securities is readily determinable
and
2) they are frequently easily transferrable.

Inherent risk associated with investments, particularly marketable securities, is generally high,

largely due to the fact that their value is readily determinable and they are frequently easily transferrable.

266
Q

What factors affecting inherent risk (IR) in this investing area?

• __________’s investment objectives

A

Factors affecting inherent risk (IR) in this investing area include:

• Management’s investment objectives

267
Q

What factors affecting inherent risk (IR) in this investing area?

• Management’s _________ objectives

A

What factors affecting inherent risk (IR) in this investing area?

• Management’s investment objectives

268
Q

What factors affecting inherent risk (IR) in this investing area?

• Management’s investment __________

A

What factors affecting inherent risk (IR) in this investing area?

• Management’s investment objectives

269
Q

What factors affecting inherent risk (IR) in this investing area?

• Management’s _______________________

A

What factors affecting inherent risk (IR) in this investing area?

• Management’s investment objectives

270
Q

What factors affecting inherent risk (IR) in this investing area?

• ____________’s investment _____________

A

What factors affecting inherent risk (IR) in this investing area?

• Management’s investment objectives

271
Q

What factors affecting inherent risk (IR) in this investing area?

•

A

What factors affecting inherent risk (IR) in this investing area?

• Management’s investment objectives

272
Q

What factors affecting inherent risk (IR) in this investing area?

• _________ of the security or derivative instrument

A

Factors affecting inherent risk (IR) in this investing area include:

• Complexity of the security or derivative instrument

273
Q

What factors affecting inherent risk (IR) in this investing area?

• Complexity of the _________ or derivative instrument

A

What factors affecting inherent risk (IR) in this investing area?

• Complexity of the security or derivative instrument

274
Q

What factors affecting inherent risk (IR) in this investing area?

• Complexity of the security or ________ instrument

A

What factors affecting inherent risk (IR) in this investing area?

• Complexity of the security or derivative instrument

275
Q

What factors affecting inherent risk (IR) in this investing area?

• Complexity of the security or derivative __________

A

What factors affecting inherent risk (IR) in this investing area?

• Complexity of the security or derivative instrument

276
Q

What factors affecting inherent risk (IR) in this investing area?

• ___________ of the security or _________ instrument

A

What factors affecting inherent risk (IR) in this investing area?

• Complexity of the security or derivative instrument

277
Q

What factors affecting inherent risk (IR) in this investing area?

• ____________ of the security or derivative __________

A

What factors affecting inherent risk (IR) in this investing area?

• Complexity of the security or derivative instrument

278
Q

What factors affecting inherent risk (IR) in this investing area?

• Complexity of the ________ or __________ instrument

A

What factors affecting inherent risk (IR) in this investing area?

• Complexity of the security or derivative instrument

279
Q

What factors affecting inherent risk (IR) in this investing area?

• Complexity of the ________ or __________ instrument

A

What factors affecting inherent risk (IR) in this investing area?

• Complexity of the security or derivative instrument

280
Q

What factors affecting inherent risk (IR) in this investing area?

• Whether the ____________ giving rise to the security involved cash

A

Factors affecting inherent risk (IR) in this investing area include:

• Whether the transaction giving rise to the security involved cash

281
Q

What factors affecting inherent risk (IR) in this investing area?

• Whether the transaction giving ____ to the security involved cash

A

Factors affecting inherent risk (IR) in this investing area include:

• Whether the transaction giving rise to the security involved cash

282
Q

What factors affecting inherent risk (IR) in this investing area?

• Whether the transaction giving rise to the ________ involved cash

A

Factors affecting inherent risk (IR) in this investing area include:

• Whether the transaction giving rise to the security involved cash

283
Q

What factors affecting inherent risk (IR) in this investing area?

• Whether the transaction giving rise to the security involved ____

A

Factors affecting inherent risk (IR) in this investing area include:

• Whether the transaction giving rise to the security involved cash

284
Q

What factors affecting inherent risk (IR) in this investing area?

  • _________’s investment ___________
  • Complexity of the security or derivative instrument
  • Whether the transaction giving rise to the security involved cash
A

Factors affecting inherent risk (IR) in this investing area include:

  • Management’s investment objectives
  • Complexity of the security or derivative instrument
  • Whether the transaction giving rise to the security involved cash
285
Q

What factors affecting inherent risk (IR) in this investing area?

  • Management’s _________ ___________
  • Complexity of the security or derivative instrument
  • Whether the transaction giving rise to the security involved cash
A

What factors affecting inherent risk (IR) in this investing area?

  • Management’s investment objectives
  • Complexity of the security or derivative instrument
  • Whether the transaction giving rise to the security involved cash
286
Q

What factors affecting inherent risk (IR) in this investing area?

  • Management’s investment objectives
  • ___________ of the security or derivative __________
  • Whether the transaction giving rise to the security involved cash
A

What factors affecting inherent risk (IR) in this investing area?

  • Management’s investment objectives
  • Complexity of the security or derivative instrument
  • Whether the transaction giving rise to the security involved cash
287
Q

What factors affecting inherent risk (IR) in this investing area?

  • Management’s investment objectives
  • Complexity of the _______ or _________ instrument
  • Whether the transaction giving rise to the security involved cash
A

What factors affecting inherent risk (IR) in this investing area?

  • Management’s investment objectives
  • Complexity of the security or derivative instrument
  • Whether the transaction giving rise to the security involved cash
288
Q

What factors affecting inherent risk (IR) in this investing area?

  • Management’s investment objectives
  • Complexity of the security or derivative instrument
  • Whether the __________ giving rise to the security involved cash
A

What factors affecting inherent risk (IR) in this investing area?

  • Management’s investment objectives
  • Complexity of the security or derivative instrument
  • Whether the transaction giving rise to the security involved cash
289
Q

What factors affecting inherent risk (IR) in this investing area?

  • Management’s investment objectives
  • Complexity of the security or derivative instrument
  • Whether the transaction giving rise to the ________ involved _____
A

What factors affecting inherent risk (IR) in this investing area?

  • Management’s investment objectives
  • Complexity of the security or derivative instrument
  • Whether the transaction giving rise to the security involved cash
290
Q

What factors affecting inherent risk (IR) in this investing area?

  • Management’s investment objectives
  • Complexity of the security or derivative instrument
  • Whether the ________ giving rise to the security _________ cash
A

What factors affecting inherent risk (IR) in this investing area?

  • Management’s investment objectives
  • Complexity of the security or derivative instrument
  • Whether the transaction giving rise to the security involved cash
291
Q

What factors affecting inherent risk (IR) in this investing area?

  • Management’s investment __________
  • ___________ of the security or derivative instrument
  • Whether the transaction giving rise to the security involved ____
A

What factors affecting inherent risk (IR) in this investing area?

  • Management’s investment objectives
  • Complexity of the security or derivative instrument
  • Whether the transaction giving rise to the security involved cash
292
Q

What factors affecting inherent risk (IR) in this investing area?

• The ________ with the security or derivative in question

A

Factors affecting inherent risk (IR) in this investing area include:

• The entities with the security or derivative in question

293
Q

What factors affecting inherent risk (IR) in this investing area?

• The entities with the ________ or derivative in question

A

What factors affecting inherent risk (IR) in this investing area?

• The entities with the security or derivative in question

294
Q

What factors affecting inherent risk (IR) in this investing area?

• The entities with the security or _________ in question

A

What factors affecting inherent risk (IR) in this investing area?

• The entities with the security or derivative in question

295
Q

What factors affecting inherent risk (IR) in this investing area?

• The entities with the security or derivative in __________

A

What factors affecting inherent risk (IR) in this investing area?

• The entities with the security or derivative in question

296
Q

What factors affecting inherent risk (IR) in this investing area?

• The entities with the _______ or ________ in question

A

What factors affecting inherent risk (IR) in this investing area?

• The entities with the security or derivative in question

297
Q

What factors affecting inherent risk (IR) in this investing area?

• Whether the ________ is stand-alone or an embedded feature of a separate agreement

A

What factors affecting inherent risk (IR) in this investing area?

• Whether the derivative is stand-alone or an embedded feature of a separate agreement

298
Q

What factors affecting inherent risk (IR) in this investing area?

• Whether the derivative is ______ - ______ or an embedded feature of a separate agreement

A

What factors affecting inherent risk (IR) in this investing area?

• Whether the derivative is stand-alone or an embedded feature of a separate agreement

299
Q

What factors affecting inherent risk (IR) in this investing area?

• Whether the derivative is stand-alone or an embedded _______ of a separate agreement

A

What factors affecting inherent risk (IR) in this investing area?

• Whether the derivative is stand-alone or an embedded feature of a separate agreement

300
Q

What factors affecting inherent risk (IR) in this investing area?

• Whether the derivative is stand-alone or an ________ feature of a separate agreement

A

What factors affecting inherent risk (IR) in this investing area?

• Whether the derivative is stand-alone or an embedded feature of a separate agreement

301
Q

What factors affecting inherent risk (IR) in this investing area?

• Whether the derivative is stand-alone or an embedded feature of a separate _________

A

What factors affecting inherent risk (IR) in this investing area?

• Whether the derivative is stand-alone or an embedded feature of a separate agreement

302
Q

What factors affecting inherent risk (IR) in this investing area?

• Whether the derivative is stand-alone or an embedded feature of a _________ agreement

A

What factors affecting inherent risk (IR) in this investing area?

• Whether the derivative is stand-alone or an embedded feature of a separate agreement

303
Q

What factors affecting inherent risk (IR) in this investing area?

• External ______ affecting management’s assertions such as credit, market and legal risks

A

What factors affecting inherent risk (IR) in this investing area?

• External factors affecting management’s assertions such as credit, market and legal risks

304
Q

What factors affecting inherent risk (IR) in this investing area?

• External factors affecting _________’s assertions such as credit, market and legal risks

A

What factors affecting inherent risk (IR) in this investing area?

• External factors affecting management’s assertions such as credit, market and legal risks

305
Q

What factors affecting inherent risk (IR) in this investing area?

• External factors affecting management’s __________ such as credit, market and legal risks

A

What factors affecting inherent risk (IR) in this investing area?

• External factors affecting management’s assertions such as credit, market and legal risks

306
Q

What factors affecting inherent risk (IR) in this investing area?

• _______ factors affecting management’s assertions such as credit, market and legal risks

A

What factors affecting inherent risk (IR) in this investing area?

• External factors affecting management’s assertions such as credit, market and legal risks

307
Q

What factors affecting inherent risk (IR) in this investing area?

• External factors affecting management’s assertions such as credit, market and legal _____

A

What factors affecting inherent risk (IR) in this investing area?

• External factors affecting management’s assertions such as credit, market and legal risks

308
Q

What factors affecting inherent risk (IR) in this investing area?

• External factors affecting management’s assertions such as credit, _______ and legal risks

A

What factors affecting inherent risk (IR) in this investing area?

• External factors affecting management’s assertions such as credit, market and legal risks

309
Q

What factors affecting inherent risk (IR) in this investing area?

• External factors affecting management’s assertions such as credit, market and ______ risks

A

What factors affecting inherent risk (IR) in this investing area?

• External factors affecting management’s assertions such as credit, market and legal risks

310
Q

What factors affecting inherent risk (IR) in this investing area?

• External factors affecting management’s assertions such as _____, market and legal risks

A

What factors affecting inherent risk (IR) in this investing area?

• External factors affecting management’s assertions such as credit, market and legal risks

311
Q

What factors affecting inherent risk (IR) in this investing area?

• External factors ________ management’s assertions such as credit, market and legal risks

A

What factors affecting inherent risk (IR) in this investing area?

• External factors affecting management’s assertions such as credit, market and legal risks

312
Q

What factors affecting inherent risk (IR) in this investing area?

• _______________ affecting management’s assertions such as credit, market and legal risks

A

What factors affecting inherent risk (IR) in this investing area?

• External factors affecting management’s assertions such as credit, market and legal risks

313
Q

What factors affecting inherent risk (IR) in this investing area?

• External factors affecting management’s assertions such as ______, ______ and legal risks

A

What factors affecting inherent risk (IR) in this investing area?

• External factors affecting management’s assertions such as credit, market and legal risks

314
Q

What factors affecting inherent risk (IR) in this investing area?

• External factors affecting management’s assertions such as credit, market and _____ _____

A

What factors affecting inherent risk (IR) in this investing area?

• External factors affecting management’s assertions such as credit, market and legal risks

315
Q

What factors affecting inherent risk (IR) in this investing area?

  • The ______ with the security or derivative in _________
  • Whether the derivative is stand-alone or an embedded feature of a separate agreement
  • External factors affecting management’s assertions such as credit, market and legal risks
A

What factors affecting inherent risk (IR) in this investing area?

  • The entities with the security or derivative in question
  • Whether the derivative is stand-alone or an embedded feature of a separate agreement
  • External factors affecting management’s assertions such as credit, market and legal risks
316
Q

What factors affecting inherent risk (IR) in this investing area?

  • The entities with the ______ or derivative in ________
  • Whether the derivative is stand-alone or an embedded feature of a separate agreement
  • External factors affecting management’s assertions such as credit, market and legal risks
A

What factors affecting inherent risk (IR) in this investing area?

  • The entities with the security or derivative in question
  • Whether the derivative is stand-alone or an embedded feature of a separate agreement
  • External factors affecting management’s assertions such as credit, market and legal risks
317
Q

What factors affecting inherent risk (IR) in this investing area?

  • The entities with the security or _________ in ________
  • Whether the derivative is stand-alone or an embedded feature of a separate agreement
  • External factors affecting management’s assertions such as credit, market and legal risks
A

What factors affecting inherent risk (IR) in this investing area?

  • The entities with the security or derivative in question
  • Whether the derivative is stand-alone or an embedded feature of a separate agreement
  • External factors affecting management’s assertions such as credit, market and legal risks
318
Q

What factors affecting inherent risk (IR) in this investing area?

  • The entities with the security or derivative in question
  • Whether the _________ is stand-alone or an embedded feature of a separate _________
  • External factors affecting management’s assertions such as credit, market and legal risks
A

What factors affecting inherent risk (IR) in this investing area?

  • The entities with the security or derivative in question
  • Whether the derivative is stand-alone or an embedded feature of a separate agreement
  • External factors affecting management’s assertions such as credit, market and legal risks
319
Q

What factors affecting inherent risk (IR) in this investing area?

  • The entities with the security or derivative in question
  • Whether the derivative is _____-_______or an embedded feature of a ________ agreement
  • External factors affecting management’s assertions such as credit, market and legal risks
A

What factors affecting inherent risk (IR) in this investing area?

  • The entities with the security or derivative in question
  • Whether the derivative is stand-alone or an embedded feature of a separate agreement
  • External factors affecting management’s assertions such as credit, market and legal risks
320
Q

What factors affecting inherent risk (IR) in this investing area?

  • The entities with the security or derivative in question
  • Whether the derivative is stand-alone or an __________ feature of a ________ agreement
  • External factors affecting management’s assertions such as credit, market and legal risks
A

What factors affecting inherent risk (IR) in this investing area?

  • The entities with the security or derivative in question
  • Whether the derivative is stand-alone or an embedded feature of a separate agreement
  • External factors affecting management’s assertions such as credit, market and legal risks
321
Q

What factors affecting inherent risk (IR) in this investing area?

  • The entities with the security or derivative in question
  • Whether the _________ is stand-_____or an embedded feature of a separate agreement
  • External factors affecting management’s assertions such as credit, market and legal risks
A

What factors affecting inherent risk (IR) in this investing area?

  • The entities with the security or derivative in question
  • Whether the derivative is stand-alone or an embedded feature of a separate agreement
  • External factors affecting management’s assertions such as credit, market and legal risks
322
Q

What factors affecting inherent risk (IR) in this investing area?

  • The entities with the security or derivative in question
  • Whether the derivative is stand-alone or an embedded feature of a separate agreement
  • External ______ affecting management’s _________ such as credit, market and legal risks
A

What factors affecting inherent risk (IR) in this investing area?

  • The entities with the security or derivative in question
  • Whether the derivative is stand-alone or an embedded feature of a separate agreement
  • External factors affecting management’s assertions such as credit, market and legal risks
323
Q

What factors affecting inherent risk (IR) in this investing area?

  • The entities with the security or derivative in question
  • Whether the derivative is stand-alone or an embedded feature of a separate agreement
  • _______ factors affecting _________’s assertions such as credit, market and legal risks
A

What factors affecting inherent risk (IR) in this investing area?

  • The entities with the security or derivative in question
  • Whether the derivative is stand-alone or an embedded feature of a separate agreement
  • External factors affecting management’s assertions such as credit, market and legal risks
324
Q

What factors affecting inherent risk (IR) in this investing area?

  • The entities with the security or derivative in question
  • Whether the derivative is stand-alone or an embedded feature of a separate agreement
  • External factors affecting management’s assertions such as credit, _______ and legal ______
A

What factors affecting inherent risk (IR) in this investing area?

  • The entities with the security or derivative in question
  • Whether the derivative is stand-alone or an embedded feature of a separate agreement
  • External factors affecting management’s assertions such as credit, market and legal risks
325
Q

What factors affecting inherent risk (IR) in this investing area?

• Evolving GAAP with respect to __________ and investments

A

What factors affecting inherent risk (IR) in this investing area?

• Evolving GAAP with respect to derivatives and investments

326
Q

What factors affecting inherent risk (IR) in this investing area?

• Evolving GAAP with respect to derivatives and ___________

A

What factors affecting inherent risk (IR) in this investing area?

• Evolving GAAP with respect to derivatives and investments

327
Q

What factors affecting inherent risk (IR) in this investing area?

• Evolving _____ with respect to derivatives and investments

A

What factors affecting inherent risk (IR) in this investing area?

• Evolving GAAP with respect to derivatives and investments

328
Q

What factors affecting inherent risk (IR) in this investing area?

• Reliance on _______ parties

A

What factors affecting inherent risk (IR) in this investing area?

• Reliance on outside parties

329
Q

What factors affecting inherent risk (IR) in this investing area?

• Reliance on outside ________

A

What factors affecting inherent risk (IR) in this investing area?

• Reliance on outside parties

330
Q

What factors affecting inherent risk (IR) in this investing area?

• ________ on outside parties

A

What factors affecting inherent risk (IR) in this investing area?

• Reliance on outside parties

331
Q

What factors affecting inherent risk (IR) in this investing area?

• Assumptions about _______ conditions

A

What factors affecting inherent risk (IR) in this investing area?

• Assumptions about future conditions

332
Q

What factors affecting inherent risk (IR) in this investing area?

• Assumptions about future __________

A

What factors affecting inherent risk (IR) in this investing area?

• Assumptions about future conditions

333
Q

What factors affecting inherent risk (IR) in this investing area?

• __________ about future conditions

A

What factors affecting inherent risk (IR) in this investing area?

• Assumptions about future conditions

334
Q

What factors affecting inherent risk (IR) in this investing area?

  • Evolving GAAP with respect to _________ and investments
  • Reliance on outside parties
  • Assumptions about future conditions
A

What factors affecting inherent risk (IR) in this investing area?

  • Evolving GAAP with respect to derivatives and investments
  • Reliance on outside parties
  • Assumptions about future conditions
335
Q

What factors affecting inherent risk (IR) in this investing area?

  • Evolving GAAP with respect to derivatives and ___________
  • Reliance on outside parties
  • Assumptions about future conditions
A

What factors affecting inherent risk (IR) in this investing area?

  • Evolving GAAP with respect to derivatives and investments
  • Reliance on outside parties
  • Assumptions about future conditions
336
Q

What factors affecting inherent risk (IR) in this investing area?

  • Evolving _____ with respect to derivatives and investments
  • Reliance on outside parties
  • Assumptions about future conditions
A

What factors affecting inherent risk (IR) in this investing area?

  • Evolving GAAP with respect to derivatives and investments
  • Reliance on outside parties
  • Assumptions about future conditions
337
Q

What factors affecting inherent risk (IR) in this investing area?

  • Evolving GAAP with respect to derivatives and investments
  • Reliance on _______ parties
  • Assumptions about future conditions
A

What factors affecting inherent risk (IR) in this investing area?

  • Evolving GAAP with respect to derivatives and investments
  • Reliance on outside parties
  • Assumptions about future conditions
338
Q

What factors affecting inherent risk (IR) in this investing area?

  • Evolving GAAP with respect to derivatives and investments
  • ________ on outside parties
  • Assumptions about future conditions
A

What factors affecting inherent risk (IR) in this investing area?

  • Evolving GAAP with respect to derivatives and investments
  • Reliance on outside parties
  • Assumptions about future conditions
339
Q

What factors affecting inherent risk (IR) in this investing area?

  • Evolving GAAP with respect to derivatives and investments
  • Reliance on outside _______
  • Assumptions about future conditions
A

What factors affecting inherent risk (IR) in this investing area?

  • Evolving GAAP with respect to derivatives and investments
  • Reliance on outside parties
  • Assumptions about future conditions
340
Q

What factors affecting inherent risk (IR) in this investing area?

  • Evolving GAAP with respect to derivatives and investments
  • Reliance on outside parties
  • Assumptions about future _________
A

What factors affecting inherent risk (IR) in this investing area?

  • Evolving GAAP with respect to derivatives and investments
  • Reliance on outside parties
  • Assumptions about future conditions
341
Q

What factors affecting inherent risk (IR) in this investing area?

  • Evolving GAAP with respect to derivatives and investments
  • Reliance on outside parties
  • Assumptions about _______ conditions
A

What factors affecting inherent risk (IR) in this investing area?

  • Evolving GAAP with respect to derivatives and investments
  • Reliance on outside parties
  • Assumptions about future conditions
342
Q

What factors affecting inherent risk (IR) in this investing area?

  • Evolving GAAP with respect to derivatives and investments
  • Reliance on outside parties
  • ___________ about future conditions
A

What factors affecting inherent risk (IR) in this investing area?

  • Evolving GAAP with respect to derivatives and investments
  • Reliance on outside parties
  • Assumptions about future conditions
343
Q

What factors affecting inherent risk (IR) in this investing area?

  • Management’s investment __________
  • ________ of the security or derivative instrument
  • Whether the transaction giving rise to the security involved cash
  • The entities with the security or derivative in question
  • Whether the derivative is stand-alone or an embedded feature of a separate agreement
  • External factors affecting management’s assertions such as credit, market and legal risks
  • Evolving GAAP with respect to derivatives and investments
  • Reliance on outside parties
  • Assumptions about future conditions
A

Factors affecting inherent risk (IR) in this investing area include:

  • Management’s investment objectives
  • Complexity of the security or derivative instrument
  • Whether the transaction giving rise to the security involved cash
  • The entities with the security or derivative in question
  • Whether the derivative is stand-alone or an embedded feature of a separate agreement
  • External factors affecting management’s assertions such as credit, market and legal risks
  • Evolving GAAP with respect to derivatives and investments
  • Reliance on outside parties
  • Assumptions about future conditions
344
Q

Factors affecting inherent risk (IR) in this investing area include:

  • Management’s investment objectives
  • Complexity of the security or derivative instrument
  • Whether the transaction giving rise to the security involved ____
  • The entities with the security or derivative in ________
  • Whether the derivative is stand-alone or an embedded feature of a separate agreement
  • External factors affecting management’s assertions such as credit, market and legal risks
  • Evolving GAAP with respect to derivatives and investments
  • Reliance on outside parties
  • Assumptions about future conditions
A

Factors affecting inherent risk (IR) in this investing area include:

  • Management’s investment objectives
  • Complexity of the security or derivative instrument
  • Whether the transaction giving rise to the security involved cash
  • The entities with the security or derivative in question
  • Whether the derivative is stand-alone or an embedded feature of a separate agreement
  • External factors affecting management’s assertions such as credit, market and legal risks
  • Evolving GAAP with respect to derivatives and investments
  • Reliance on outside parties
  • Assumptions about future conditions
345
Q

Factors affecting inherent risk (IR) in this investing area include:

  • Management’s investment objectives
  • Complexity of the security or derivative instrument
  • Whether the transaction giving rise to the security involved cash
  • The entities with the security or derivative in question
  • Whether the derivative is stand-alone or an embedded feature of a separate _________
  • ________ factors affecting management’s assertions such as credit, market and legal risks
  • Evolving GAAP with respect to derivatives and investments
  • Reliance on outside parties
  • Assumptions about future conditions
A

Factors affecting inherent risk (IR) in this investing area include:

  • Management’s investment objectives
  • Complexity of the security or derivative instrument
  • Whether the transaction giving rise to the security involved cash
  • The entities with the security or derivative in question
  • Whether the derivative is stand-alone or an embedded feature of a separate agreement
  • External factors affecting management’s assertions such as credit, market and legal risks
  • Evolving GAAP with respect to derivatives and investments
  • Reliance on outside parties
  • Assumptions about future conditions
346
Q

Factors affecting inherent risk (IR) in this investing area include:

  • Management’s investment objectives
  • Complexity of the security or derivative instrument
  • Whether the transaction giving rise to the security involved cash
  • The entities with the security or derivative in question
  • Whether the derivative is stand-alone or an embedded feature of a separate agreement
  • External factors affecting management’s assertions such as credit, market and legal risks
  • Evolving ______ with respect to derivatives and investments
  • Reliance on ______ parties
  • Assumptions about future conditions
A

Factors affecting inherent risk (IR) in this investing area include:

  • Management’s investment objectives
  • Complexity of the security or derivative instrument
  • Whether the transaction giving rise to the security involved cash
  • The entities with the security or derivative in question
  • Whether the derivative is stand-alone or an embedded feature of a separate agreement
  • External factors affecting management’s assertions such as credit, market and legal risks
  • Evolving GAAP with respect to derivatives and investments
  • Reliance on outside parties
  • Assumptions about future conditions
347
Q

Factors affecting inherent risk (IR) in this investing area include:

  • Management’s investment objectives
  • Complexity of the security or derivative instrument
  • Whether the transaction giving rise to the security involved cash
  • The entities with the security or derivative in question
  • Whether the derivative is stand-alone or an embedded feature of a separate agreement
  • External factors affecting management’s assertions such as credit, market and legal risks
  • Evolving GAAP with respect to derivatives and investments
  • Reliance on outside parties
  • __________ about _____ conditions
A

Factors affecting inherent risk (IR) in this investing area include:

  • Management’s investment objectives
  • Complexity of the security or derivative instrument
  • Whether the transaction giving rise to the security involved cash
  • The entities with the security or derivative in question
  • Whether the derivative is stand-alone or an embedded feature of a separate agreement
  • External factors affecting management’s assertions such as credit, market and legal risks
  • Evolving GAAP with respect to derivatives and investments
  • Reliance on outside parties
  • Assumptions about future conditions

CPA AUD Flashcards (62 decks)

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