AUD 3 Internal Control 16 - 4 Operating Cycles - Investing and Financing Cycle

Question 1

Investing and Financing Cycle
Internal Controls

Substantive Procedures
(discussed in more detail in Audit Evidence)

Since derivatives are required to be reported at fair value, the auditor is required to evaluate whether the fair values of investments in derivatives have been determined appropriately, using an acceptable valuation method.

Substantive procedures in the area of investments in Derivatives should be designed to test management’s assertions with regard to (PERCV):

• Presentation and Disclosure
• Existence
• Rights and Obligations
• Completeness
• Valuation

Answer 1

Investing and Financing Cycle
Internal Controls

Substantive Procedures
(discussed in more detail in Audit Evidence)

Since derivatives are required to be reported at fair value, the auditor is required to evaluate whether the fair values of investments in derivatives have been determined appropriately, using an acceptable valuation method.

Substantive procedures in the area of investments in Derivatives should be designed to test management’s assertions with regard to (PERCV):

• Presentation and Disclosure
• Existence
• Rights and Obligations
• Completeness
• Valuation

Question 2

Investing and Financing Cycle
Internal Controls

Substantive Procedures

Since de________s are required to be reported at fair value,

Answer 2

Investing and Financing Cycle
Internal Controls

Substantive Procedures

Since derivatives are required to be reported at fair value,

Question 3

Investing and Financing Cycle
Internal Controls

Substantive Procedures

Since derivatives are re____ed to be reported at fair value,

Answer 3

Investing and Financing Cycle
Internal Controls

Substantive Procedures

Since derivatives are required to be reported at fair value,

Question 4

Investing and Financing Cycle
Internal Controls

Substantive Procedures

Since derivatives are required to be re____ed at fair value,

Answer 4

Investing and Financing Cycle
Internal Controls

Substantive Procedures

Since derivatives are required to be reported at fair value,

Question 5

Investing and Financing Cycle
Internal Controls

Substantive Procedures

Since derivatives are required to be reported at f__r value,

Answer 5

Investing and Financing Cycle
Internal Controls

Substantive Procedures

Since derivatives are required to be reported at fair value,

Question 6

Investing and Financing Cycle
Internal Controls

Substantive Procedures

Since derivatives are required to be reported at fair value, the auditor is re____ed to evaluate

Answer 6

Investing and Financing Cycle
Internal Controls

Substantive Procedures

Since derivatives are required to be reported at fair value, the auditor is required to evaluate

Question 7

Investing and Financing Cycle
Internal Controls

Substantive Procedures

Since derivatives are required to be reported at fair value, the auditor is required to ev_______ whether the fair values of investments in derivatives

Answer 7

Investing and Financing Cycle
Internal Controls

Substantive Procedures

Since derivatives are required to be reported at fair value, the auditor is required to evaluate whether the fair values of investments in derivatives

Question 8

Investing and Financing Cycle
Internal Controls

Substantive Procedures

Since derivatives are required to be reported at fair value,
the auditor is required to evaluate whether the fair va___s of investments in derivatives

Answer 8

Investing and Financing Cycle
Internal Controls

Substantive Procedures

Since derivatives are required to be reported at fair value,
the auditor is required to evaluate whether the fair values of investments in derivatives

Question 9

Investing and Financing Cycle
Internal Controls

Substantive Procedures

Since derivatives are required to be reported at fair value,
the auditor is required to evaluate whether the f__r values of investments in derivatives

Answer 9

Investing and Financing Cycle
Internal Controls

Substantive Procedures

Since derivatives are required to be reported at fair value,
the auditor is required to evaluate whether the fair values of investments in derivatives

Question 10

Investing and Financing Cycle
Internal Controls

Substantive Procedures

Since derivatives are required to be reported at fair value,
the auditor is required to evaluate whether the fair values of in________s in derivatives

Answer 10

Investing and Financing Cycle
Internal Controls

Substantive Procedures

Since derivatives are required to be reported at fair value,
the auditor is required to evaluate whether the fair values of investments in derivatives

Question 11

Investing and Financing Cycle
Internal Controls

Substantive Procedures

Since derivatives are required to be reported at fair value,
the auditor is required to evaluate whether the fair values of investments in de________s have been determined appropriately,

Answer 11

Investing and Financing Cycle
Internal Controls

Substantive Procedures

Since derivatives are required to be reported at fair value,
the auditor is required to evaluate whether the fair values of investments in derivatives have been determined appropriately,

Question 12

Investing and Financing Cycle
Internal Controls

Substantive Procedures

Since derivatives are required to be reported at fair value,
the auditor is required to evaluate whether the fair values of investments in derivatives have been de________ed appropriately,
using an acceptable valuation method.

Answer 12

Investing and Financing Cycle
Internal Controls

Substantive Procedures

Since derivatives are required to be reported at fair value,
the auditor is required to evaluate whether the fair values of investments in derivatives have been determined appropriately,
using an acceptable valuation method.

Question 13

Investing and Financing Cycle
Internal Controls

Substantive Procedures

Since derivatives are required to be reported at fair value,
the auditor is required to evaluate whether the fair values of investments in derivatives have been determined ap_________ly,
using an acceptable valuation method.

Answer 13

Investing and Financing Cycle
Internal Controls

Substantive Procedures

Since derivatives are required to be reported at fair value,
the auditor is required to evaluate whether the fair values of investments in derivatives have been determined appropriately,
using an acceptable valuation method.

Question 14

Investing and Financing Cycle
Internal Controls

Substantive Procedures

Since derivatives are required to be reported at fair value,
the auditor is required to evaluate whether the fair values of investments in derivatives have been determined appropriately,
using an ac_________le valuation method.

Answer 14

Investing and Financing Cycle
Internal Controls

Substantive Procedures

Since derivatives are required to be reported at fair value,
the auditor is required to evaluate whether the fair values of investments in derivatives have been determined appropriately,
using an acceptable valuation method.

Question 15

Investing and Financing Cycle
Internal Controls

Substantive Procedures

Since derivatives are required to be reported at fair value,
the auditor is required to evaluate whether the fair values of investments in derivatives have been determined appropriately,
using an acceptable va_______ method.

Answer 15

Investing and Financing Cycle
Internal Controls

Substantive Procedures

Since derivatives are required to be reported at fair value,
the auditor is required to evaluate whether the fair values of investments in derivatives have been determined appropriately,
using an acceptable valuation method.

Question 16

Investing and Financing Cycle
Internal Controls

Substantive Procedures

Since derivatives are required to be reported at fair value,
the auditor is required to evaluate whether the fair values of investments in derivatives have been determined appropriately,
u_ing an acceptable valuation method.

Answer 16

Investing and Financing Cycle
Internal Controls

Substantive Procedures

Since derivatives are required to be reported at fair value,
the auditor is required to evaluate whether the fair values of investments in derivatives have been determined appropriately,
using an acceptable valuation method.

Question 17

Investing and Financing Cycle
Internal Controls

Substantive Procedures

Since derivatives are required to be reported at fair value,
the auditor is required to evaluate whether the fair values of investments in derivatives have been determined appropriately,
using an acceptable valuation m_____d.

Answer 17

Investing and Financing Cycle
Internal Controls

Substantive Procedures

Since derivatives are required to be reported at fair value,
the auditor is required to evaluate whether the fair values of investments in derivatives have been determined appropriately,
using an acceptable valuation method.

Question 18

Investing and Financing Cycle
Internal Controls

Su_________ Procedures

Since derivatives are required to be reported at fair value, the auditor is required to evaluate whether the fair values of investments in derivatives have been determined appropriately, using an acceptable valuation method.

Answer 18

Investing and Financing Cycle
Internal Controls

Substantive Procedures

Since derivatives are required to be reported at fair value, the auditor is required to evaluate whether the fair values of investments in derivatives have been determined appropriately, using an acceptable valuation method.

Question 19

Investing and Financing Cycle
Internal Controls

Substantive Pro________s

Since derivatives are required to be reported at fair value, the auditor is required to evaluate whether the fair values of investments in derivatives have been determined appropriately, using an acceptable valuation method.

Answer 19

Investing and Financing Cycle
Internal Controls

Substantive Procedures

Since derivatives are required to be reported at fair value, the auditor is required to evaluate whether the fair values of investments in derivatives have been determined appropriately, using an acceptable valuation method.

Question 20

Investing and Financing Cycle
Internal Controls

Substantive Procedures

Since derivatives are required to be reported at fair value, the auditor is required to evaluate whether the fair values of investments in derivatives have been determined appropriately, using an acceptable valuation method.

Substantive procedures in the area of investments in Derivatives should be designed to test management’s assertions with regard to (PERCV):

Answer 20

Investing and Financing Cycle
Internal Controls

Substantive Procedures

Since derivatives are required to be reported at fair value, the auditor is required to evaluate whether the fair values of investments in derivatives have been determined appropriately, using an acceptable valuation method.

Substantive procedures in the area of investments in Derivatives should be designed to test management’s assertions with regard to (PERCV):

Question 21

Investing and Financing Cycle
Internal Controls

Substantive Procedures

Since derivatives are required to be reported at fair value, the auditor is required to evaluate whether the fair values of investments in derivatives have been determined appropriately, using an acceptable valuation method.

Sub_______ procedures in the area of investments in Derivatives should be designed to test management’s assertions with regard to (PERCV):

Answer 21

Investing and Financing Cycle
Internal Controls

Substantive Procedures

Since derivatives are required to be reported at fair value, the auditor is required to evaluate whether the fair values of investments in derivatives have been determined appropriately, using an acceptable valuation method.

Substantive procedures in the area of investments in Derivatives should be designed to test management’s assertions with regard to (PERCV):

Question 22

Investing and Financing Cycle
Internal Controls

Substantive Procedures

Substantive pro_____es in the area of investments in Derivatives should be designed to test management’s assertions with regard to (PERCV):

Answer 22

Investing and Financing Cycle
Internal Controls

Substantive Procedures

Substantive procedures in the area of investments in Derivatives should be designed to test management’s assertions with regard to (PERCV):

Question 23

Investing and Financing Cycle
Internal Controls

Substantive Procedures

Substantive procedures in the area of inv_______s in Derivatives should be designed to test management’s assertions with regard to (PERCV):

Answer 23

Investing and Financing Cycle
Internal Controls

Substantive Procedures

Substantive procedures in the area of investments in Derivatives should be designed to test management’s assertions with regard to (PERCV):

Question 24

Investing and Financing Cycle
Internal Controls

Substantive Procedures

Substantive procedures in the area of investments in Der_______s should be designed to test management’s assertions with regard to (PERCV):

Answer 24

Investing and Financing Cycle
Internal Controls

Substantive Procedures

Substantive procedures in the area of investments in Derivatives should be designed to test management’s assertions with regard to (PERCV):

Question 25

Investing and Financing Cycle Internal Controls Substantive Procedures Substantive procedures in the area of investments in Derivatives should be de____ed to test management’s assertions with regard to (PERCV):

Answer 25

Investing and Financing Cycle Internal Controls Substantive Procedures Substantive procedures in the area of investments in Derivatives should be designed to test management’s assertions with regard to (PERCV):

Question 26

Investing and Financing Cycle Internal Controls Substantive Procedures Substantive procedures in the area of investments in Derivatives should be designed to test ma________’s assertions with regard to (PERCV):

Answer 26

Investing and Financing Cycle Internal Controls Substantive Procedures Substantive procedures in the area of investments in Derivatives should be designed to test management’s assertions with regard to (PERCV):

Question 27

Investing and Financing Cycle Internal Controls Substantive Procedures Substantive procedures in the area of investments in Derivatives should be designed to test management’s as_______s with regard to (PERCV):

Answer 27

Investing and Financing Cycle Internal Controls Substantive Procedures Substantive procedures in the area of investments in Derivatives should be designed to test management’s assertions with regard to (PERCV):

Question 28

Investing and Financing Cycle Internal Controls Substantive Procedures Substantive procedures in the area of investments in Derivatives should be designed to test management’s assertions with regard to (P__CV):

Answer 28

Investing and Financing Cycle Internal Controls Substantive Procedures Substantive procedures in the area of investments in Derivatives should be designed to test management’s assertions with regard to (PERCV):

Question 29

Investing and Financing Cycle Internal Controls Substantive Procedures Substantive procedures in the area of investments in Derivatives should be designed to test management’s assertions with regard to (PER__):

Answer 29

Investing and Financing Cycle Internal Controls Substantive Procedures Substantive procedures in the area of investments in Derivatives should be designed to test management’s assertions with regard to (PERCV):

Question 30

Investing and Financing Cycle Internal Controls Substantive Procedures Since derivatives are required to be reported at fair value, the auditor is required to evaluate whether the fair values of investments in derivatives have been determined appropriately, using an acceptable valuation method. Substantive procedures in the area of investments in Derivatives should be designed to test management’s assertions with regard to (P_____): * Presentation and Disclosure * Existence * Rights and Obligations * Completeness * Valuation

Answer 30

Investing and Financing Cycle Internal Controls Substantive Procedures Since derivatives are required to be reported at fair value, the auditor is required to evaluate whether the fair values of investments in derivatives have been determined appropriately, using an acceptable valuation method. Substantive procedures in the area of investments in Derivatives should be designed to test management’s assertions with regard to (PERCV): * Presentation and Disclosure * Existence * Rights and Obligations * Completeness * Valuation

Question 31

Investing and Financing Cycle Internal Controls Substantive Procedures Substantive procedures in the area of investments in Derivatives should be designed to t____ management’s as_______s with regard to (PERCV): * Presentation and Disclosure * Existence * Rights and Obligations * Completeness * Valuation

Answer 31

Investing and Financing Cycle Internal Controls Substantive Procedures Substantive procedures in the area of investments in Derivatives should be designed to test management’s assertions with regard to (PERCV): * Presentation and Disclosure * Existence * Rights and Obligations * Completeness * Valuation

Question 32

Substantive Procedures Substantive procedures in the area of investments in Derivatives should be designed to test management’s assertions with regard to (PERCV): * Pre________ and Disclosure * Existence * Rights and Obligations * Completeness * Valuation

Answer 32

Substantive Procedures Substantive procedures in the area of investments in Derivatives should be designed to test management’s assertions with regard to (PERCV): * Presentation and Disclosure * Existence * Rights and Obligations * Completeness * Valuation

Question 33

Substantive Procedures Substantive procedures in the area of investments in Derivatives should be designed to test management’s assertions with regard to (PERCV): * Presentation and Disc______ * Existence * Rights and Obligations * Completeness * Valuation

Answer 33

Substantive Procedures Substantive procedures in the area of investments in Derivatives should be designed to test management’s assertions with regard to (PERCV): * Presentation and Disclosure * Existence * Rights and Obligations * Completeness * Valuation

Question 34

Substantive Procedures Substantive procedures in the area of investments in Derivatives should be designed to test management’s assertions with regard to (PERCV): * Presentation and Disclosure * Ex_______ * Rights and Obligations * Completeness * Valuation

Answer 34

Substantive Procedures Substantive procedures in the area of investments in Derivatives should be designed to test management’s assertions with regard to (PERCV): * Presentation and Disclosure * Existence * Rights and Obligations * Completeness * Valuation

Question 35

Substantive Procedures Substantive procedures in the area of investments in Derivatives should be designed to test management’s assertions with regard to (PERCV): * Presentation and Disclosure * Existence * R_____s and Obligations * Completeness * Valuation

Answer 35

Substantive Procedures Substantive procedures in the area of investments in Derivatives should be designed to test management’s assertions with regard to (PERCV): * Presentation and Disclosure * Existence * Rights and Obligations * Completeness * Valuation

Question 36

Substantive Procedures Substantive procedures in the area of investments in Derivatives should be designed to test management’s assertions with regard to (PERCV): * Presentation and Disclosure * Existence * Rights and Ob________s * Completeness * Valuation

Answer 36

Substantive Procedures Substantive procedures in the area of investments in Derivatives should be designed to test management’s assertions with regard to (PERCV): * Presentation and Disclosure * Existence * Rights and Obligations * Completeness * Valuation

Question 37

Substantive Procedures Substantive procedures in the area of investments in Derivatives should be designed to test management’s assertions with regard to (PERCV): * Presentation and Disclosure * Existence * Rights and Obligations * Co___________ * Valuation

Answer 37

Substantive Procedures Substantive procedures in the area of investments in Derivatives should be designed to test management’s assertions with regard to (PERCV): * Presentation and Disclosure * Existence * Rights and Obligations * Completeness * Valuation

Question 38

Substantive Procedures Substantive procedures in the area of investments in Derivatives should be designed to test management’s assertions with regard to (PERCV): * Presentation and Disclosure * Existence * Rights and Obligations * Completeness * Va_______

Answer 38

Substantive Procedures Substantive procedures in the area of investments in Derivatives should be designed to test management’s assertions with regard to (PERCV): * Presentation and Disclosure * Existence * Rights and Obligations * Completeness * Valuation

Question 39

Substantive Procedures Substantive procedures in the area of investments in Derivatives should be designed to test management’s assertions with regard to (PERCV): * P__________ and D___________ * Existence * Rights and Obligations * Completeness * Valuation

Answer 39

Substantive Procedures Substantive procedures in the area of investments in Derivatives should be designed to test management’s assertions with regard to (PERCV): * Presentation and Disclosure * Existence * Rights and Obligations * Completeness * Valuation

Question 40

Substantive Procedures Substantive procedures in the area of investments in Derivatives should be designed to test management’s assertions with regard to (PERCV): * Presentation and Disclosure * E_________ * Rights and Obligations * Completeness * Valuation

Answer 40

Substantive Procedures Substantive procedures in the area of investments in Derivatives should be designed to test management’s assertions with regard to (PERCV): * Presentation and Disclosure * Existence * Rights and Obligations * Completeness * Valuation

Question 41

Substantive Procedures Substantive procedures in the area of investments in Derivatives should be designed to test management’s assertions with regard to (PERCV): * Presentation and Disclosure * Existence * R_____ and O_________ * Completeness * Valuation

Answer 41

Substantive Procedures Substantive procedures in the area of investments in Derivatives should be designed to test management’s assertions with regard to (PERCV): * Presentation and Disclosure * Existence * Rights and Obligations * Completeness * Valuation

Question 42

Substantive Procedures Substantive procedures in the area of investments in Derivatives should be designed to test management’s assertions with regard to (PERCV): * Presentation and Disclosure * Existence * Rights and Obligations * C___________ * Valuation

Answer 42

Substantive Procedures Substantive procedures in the area of investments in Derivatives should be designed to test management’s assertions with regard to (PERCV): * Presentation and Disclosure * Existence * Rights and Obligations * Completeness * Valuation

Question 43

Substantive Procedures Substantive procedures in the area of investments in Derivatives should be designed to test management’s assertions with regard to (PERCV): * Presentation and Disclosure * Existence * Rights and Obligations * Completeness * V__________

Answer 43

Substantive Procedures Substantive procedures in the area of investments in Derivatives should be designed to test management’s assertions with regard to (PERCV): * Presentation and Disclosure * Existence * Rights and Obligations * Completeness * Valuation

Question 44

Substantive Procedures Substantive procedures in the area of investments in Derivatives should be designed to test management’s assertions with regard to (PERCV): * _________________________ * Existence * Rights and Obligations * Completeness * Valuation

Answer 44

Substantive Procedures Substantive procedures in the area of investments in Derivatives should be designed to test management’s assertions with regard to (PERCV): * Presentation and Disclosure * Existence * Rights and Obligations * Completeness * Valuation

Question 45

Substantive Procedures Substantive procedures in the area of investments in Derivatives should be designed to test management’s assertions with regard to (PERCV): * Presentation and Disclosure * _________ * Rights and Obligations * Completeness * Valuation

Answer 45

Substantive Procedures Substantive procedures in the area of investments in Derivatives should be designed to test management’s assertions with regard to (PERCV): * Presentation and Disclosure * Existence * Rights and Obligations * Completeness * Valuation

Question 46

Substantive Procedures Substantive procedures in the area of investments in Derivatives should be designed to test management’s assertions with regard to (PERCV): * Presentation and Disclosure * Existence * ____________________ * Completeness * Valuation

Answer 46

Substantive Procedures Substantive procedures in the area of investments in Derivatives should be designed to test management’s assertions with regard to (PERCV): * Presentation and Disclosure * Existence * Rights and Obligations * Completeness * Valuation

Question 47

Substantive Procedures Substantive procedures in the area of investments in Derivatives should be designed to test management’s assertions with regard to (PERCV): * Presentation and Disclosure * Existence * Rights and Obligations * ____________ * Valuation

Answer 47

Substantive Procedures Substantive procedures in the area of investments in Derivatives should be designed to test management’s assertions with regard to (PERCV): * Presentation and Disclosure * Existence * Rights and Obligations * Completeness * Valuation

Question 48

Substantive Procedures Substantive procedures in the area of investments in Derivatives should be designed to test management’s assertions with regard to (PERCV): * Presentation and Disclosure * Existence * Rights and Obligations * Completeness * _________

Answer 48

Substantive Procedures Substantive procedures in the area of investments in Derivatives should be designed to test management’s assertions with regard to (PERCV): * Presentation and Disclosure * Existence * Rights and Obligations * Completeness * Valuation

Question 49

Substantive Procedures Substantive procedures in the area of derivatives investments should be designed to test management’s assertions with regard to (PERCV): * Presentation and Disclosure * Existence * Rights and Obligations * Completeness * Valuation • Presentation and Disclosure – This will involve - reading disclosures to make certain they are in compliance with GAAP; - determining if securities have been pledged as collateral for indebtedness through inquiries and inspection of documents; and - determining that investments are appropriately classified through inquiries of management.

Answer 49

Substantive Procedures Substantive procedures in the area of derivatives investments should be designed to test management’s assertions with regard to (PERCV): * Presentation and Disclosure * Existence * Rights and Obligations * Completeness * Valuation • Presentation and Disclosure – This will involve - reading disclosures to make certain they are in compliance with GAAP; - determining if securities have been pledged as collateral for indebtedness through inquiries and inspection of documents; and - determining that investments are appropriately classified through inquiries of management.

Question 50

Substantive Procedures • Presentation and Disclosure – This will involve - r___ing disclosures to make certain they are in compliance with GAAP;

Answer 50

Substantive Procedures • Presentation and Disclosure – This will involve - reading disclosures to make certain they are in compliance with GAAP;

Question 51

Substantive Procedures • Presentation and Disclosure – This will involve - reading dis_______s to make certain they are in compliance with GAAP;

Answer 51

Substantive Procedures • Presentation and Disclosure – This will involve - reading disclosures to make certain they are in compliance with GAAP;

Question 52

Substantive Procedures • Presentation and Disclosure – This will in_____ - reading disclosures to make certain they are in compliance with GAAP;

Answer 52

Substantive Procedures • Presentation and Disclosure – This will involve - reading disclosures to make certain they are in compliance with GAAP;

Question 53

Substantive Procedures • Presentation and Disclosure – This will involve - reading disclosures to make cer____ they are in compliance with GAAP;

Answer 53

Substantive Procedures • Presentation and Disclosure – This will involve - reading disclosures to make certain they are in compliance with GAAP;

Question 54

Substantive Procedures • Presentation and Disclosure – This will involve - reading disclosures to make certain they are in comp______ with GAAP;

Answer 54

Substantive Procedures • Presentation and Disclosure – This will involve - reading disclosures to make certain they are in compliance with GAAP;

Question 55

Substantive Procedures • Presentation and Disclosure – This will involve - reading disclosures to make certain they are in compliance with G__P;

Answer 55

Substantive Procedures • Presentation and Disclosure – This will involve - reading disclosures to make certain they are in compliance with GAAP;

Question 56

Substantive Procedures • Presentation and Disclosure – This will involve - reading disclosures to make certain they are in compliance with G____;

Answer 56

Substantive Procedures • Presentation and Disclosure – This will involve - reading disclosures to make certain they are in compliance with GAAP;

Question 57

Substantive Procedures • Presentation and Disclosure – This will involve - reading disclosures to make certain they are in compliance with GAAP; - de________ing if securities have been pledged as collateral for indebtedness

Answer 57

Substantive Procedures • Presentation and Disclosure – This will involve - reading disclosures to make certain they are in compliance with GAAP; - determining if securities have been pledged as collateral for indebtedness

Question 58

Substantive Procedures • Presentation and Disclosure – This will involve - reading disclosures to make certain they are in compliance with GAAP; - determining if se_____ies have been pledged as collateral for indebtedness

Answer 58

Substantive Procedures • Presentation and Disclosure – This will involve - reading disclosures to make certain they are in compliance with GAAP; - determining if securities have been pledged as collateral for indebtedness

Question 59

Substantive Procedures • Presentation and Disclosure – This will involve - reading disclosures to make certain they are in compliance with GAAP; - determining if securities have been p___ged as collateral for indebtedness

Answer 59

Substantive Procedures • Presentation and Disclosure – This will involve - reading disclosures to make certain they are in compliance with GAAP; - determining if securities have been pledged as collateral for indebtedness

Question 60

Substantive Procedures • Presentation and Disclosure – This will involve - reading disclosures to make certain they are in compliance with GAAP; - determining if securities have been pledged as coll_______ for indebtedness

Answer 60

Substantive Procedures • Presentation and Disclosure – This will involve - reading disclosures to make certain they are in compliance with GAAP; - determining if securities have been pledged as collateral for indebtedness

Question 61

Substantive Procedures • Presentation and Disclosure – This will involve - reading disclosures to make certain they are in compliance with GAAP; - determining if securities have been pledged as collateral for ind______ess

Answer 61

Substantive Procedures • Presentation and Disclosure – This will involve - reading disclosures to make certain they are in compliance with GAAP; - determining if securities have been pledged as collateral for indebtedness

Question 62

Substantive Procedures • Presentation and Disclosure – This will involve - reading disclosures to make certain they are in compliance with GAAP; - determining if securities have been pledged as collateral for indebtedness through in____ies and inspection of documents;

Answer 62

Substantive Procedures • Presentation and Disclosure – This will involve - reading disclosures to make certain they are in compliance with GAAP; - determining if securities have been pledged as collateral for indebtedness through inquiries and inspection of documents;

Question 63

Substantive Procedures • Presentation and Disclosure – This will involve - reading disclosures to make certain they are in compliance with GAAP; - determining if securities have been pledged as collateral for indebtedness through inquiries and ins_______ of documents;

Answer 63

Substantive Procedures • Presentation and Disclosure – This will involve - reading disclosures to make certain they are in compliance with GAAP; - determining if securities have been pledged as collateral for indebtedness through inquiries and inspection of documents;

Question 64

Substantive Procedures • Presentation and Disclosure – This will involve - reading disclosures to make certain they are in compliance with GAAP; - determining if securities have been pledged as collateral for indebtedness through inquiries and inspection of do________s;

Answer 64

Substantive Procedures • Presentation and Disclosure – This will involve - reading disclosures to make certain they are in compliance with GAAP; - determining if securities have been pledged as collateral for indebtedness through inquiries and inspection of documents;

Question 65

Substantive Procedures • Presentation and Disclosure – This will involve - reading disclosures to make certain they are in compliance with GAAP; - determining if securities have been pledged as collateral for indebtedness through inquiries and inspection of documents; and - de_______ing that investments are appropriately classified

Answer 65

Substantive Procedures • Presentation and Disclosure – This will involve - reading disclosures to make certain they are in compliance with GAAP; - determining if securities have been pledged as collateral for indebtedness through inquiries and inspection of documents; and - determining that investments are appropriately classified

Question 66

Substantive Procedures • Presentation and Disclosure – This will involve - reading disclosures to make certain they are in compliance with GAAP; - determining if securities have been pledged as collateral for indebtedness through inquiries and inspection of documents; and - determining that in_________s are appropriately classified

Answer 66

Substantive Procedures • Presentation and Disclosure – This will involve - reading disclosures to make certain they are in compliance with GAAP; - determining if securities have been pledged as collateral for indebtedness through inquiries and inspection of documents; and - determining that investments are appropriately classified

Question 67

Substantive Procedures • Presentation and Disclosure – This will involve - reading disclosures to make certain they are in compliance with GAAP; - determining if securities have been pledged as collateral for indebtedness through inquiries and inspection of documents; and - determining that investments are ap_________ly classified

Answer 67

Substantive Procedures • Presentation and Disclosure – This will involve - reading disclosures to make certain they are in compliance with GAAP; - determining if securities have been pledged as collateral for indebtedness through inquiries and inspection of documents; and - determining that investments are appropriately classified

Question 68

Substantive Procedures • Presentation and Disclosure – This will involve - reading disclosures to make certain they are in compliance with GAAP; - determining if securities have been pledged as collateral for indebtedness through inquiries and inspection of documents; and - determining that investments are appropriately cl______ied through inquiries of management.

Answer 68

Substantive Procedures • Presentation and Disclosure – This will involve - reading disclosures to make certain they are in compliance with GAAP; - determining if securities have been pledged as collateral for indebtedness through inquiries and inspection of documents; and - determining that investments are appropriately classified through inquiries of management.

Question 69

Substantive Procedures • Presentation and Disclosure – This will involve - reading disclosures to make certain they are in compliance with GAAP; - determining if securities have been pledged as collateral for indebtedness through inquiries and inspection of documents; and - determining that investments are appropriately classified through in_____ies of management.

Answer 69

Substantive Procedures • Presentation and Disclosure – This will involve - reading disclosures to make certain they are in compliance with GAAP; - determining if securities have been pledged as collateral for indebtedness through inquiries and inspection of documents; and - determining that investments are appropriately classified through inquiries of management.

Question 70

Substantive Procedures • Presentation and Disclosure – This will involve - reading disclosures to make certain they are in compliance with GAAP; - determining if securities have been pledged as collateral for indebtedness through inquiries and inspection of documents; and - determining that investments are appropriately classified through inquiries of ma_________.

Answer 70

Substantive Procedures • Presentation and Disclosure – This will involve - reading disclosures to make certain they are in compliance with GAAP; - determining if securities have been pledged as collateral for indebtedness through inquiries and inspection of documents; and - determining that investments are appropriately classified through inquiries of management.

Question 71

Substantive Procedures Substantive procedures in the area of derivatives investments should be designed to test management’s assertions with regard to (PERCV): * Presentation and Disclosure * Existence * Rights and Obligations * Completeness * Valuation • Presentation and Disclosure – This will involve - r___ing disclosures to make certain they are in compliance with GAAP; - de____ining if securities have been pledged as collateral for indebtedness through inquiries and inspection of documents; and - de____ining that investments are appropriately classified through inquiries of management. • Existence – This may involve the - inspection of securities on hand; - confirmations with brokers or other third parties either holding securities or who may be counter-parties; - reviewing documents; and, - when appropriate, inspecting documentation of settlement or realization.

Answer 71

Substantive Procedures Substantive procedures in the area of derivatives investments should be designed to test management’s assertions with regard to (PERCV): * Presentation and Disclosure * Existence * Rights and Obligations * Completeness * Valuation • Presentation and Disclosure – This will involve - reading disclosures to make certain they are in compliance with GAAP; - determining if securities have been pledged as collateral for indebtedness through inquiries and inspection of documents; and - determining that investments are appropriately classified through inquiries of management. • Existence – This may involve the - inspection of securities on hand; - confirmations with brokers or other third parties either holding securities or who may be counter-parties; - reviewing documents; and, - when appropriate, inspecting documentation of settlement or realization.

Question 72

Substantive Procedures Substantive procedures in the area of derivatives investments should be designed to test management’s assertions with regard to (PERCV): * Presentation and Disclosure * Existence * Rights and Obligations * Completeness * Valuation • Existence – This may involve the - inspection of securities on hand; - confirmations with brokers or other third parties either holding securities or who may be counter-parties; - reviewing documents; and, - when appropriate, inspecting documentation of settlement or realization.

Answer 72

Substantive Procedures Substantive procedures in the area of derivatives investments should be designed to test management’s assertions with regard to (PERCV): * Presentation and Disclosure * Existence * Rights and Obligations * Completeness * Valuation • Existence – This may involve the - inspection of securities on hand; - confirmations with brokers or other third parties either holding securities or who may be counter-parties; - reviewing documents; and, - when appropriate, inspecting documentation of settlement or realization.

Question 73

Substantive Procedures • Existence – This may involve the - ins________ of securities on hand

Answer 73

Substantive Procedures • Existence – This may involve the - inspection of securities on hand

Question 74

Substantive Procedures • Existence – This may involve the - inspection of se_____ies on hand;

Answer 74

Substantive Procedures • Existence – This may involve the - inspection of securities on hand;

Question 75

Substantive Procedures • Existence – This may involve the - inspection of securities on h___;

Answer 75

Substantive Procedures • Existence – This may involve the - inspection of securities on hand;

Question 76

Substantive Procedures • Existence – This may involve the - inspection of securities on hand; - con________s with brokers

Answer 76

Substantive Procedures • Existence – This may involve the - inspection of securities on hand; - confirmations with brokers

Question 77

Substantive Procedures • Existence – This may involve the - inspection of securities on hand; - confirmations with br______s or other third parties

Answer 77

Substantive Procedures • Existence – This may involve the - inspection of securities on hand; - confirmations with brokers or other third parties

Question 78

Substantive Procedures • Existence – This may involve the - inspection of securities on hand; - confirmations with brokers or other third p___ies

Answer 78

Substantive Procedures • Existence – This may involve the - inspection of securities on hand; - confirmations with brokers or other third parties

Question 79

Substantive Procedures • Existence – This may involve the - inspection of securities on hand; - confirmations with brokers or other third parties either h___ing securities

Answer 79

Substantive Procedures • Existence – This may involve the - inspection of securities on hand; - confirmations with brokers or other third parties either holding securities

Question 80

Substantive Procedures • Existence – This may involve the - inspection of securities on hand; - confirmations with brokers or other third parties either holding se_____ies or who may be counter-parties;

Answer 80

Substantive Procedures • Existence – This may involve the - inspection of securities on hand; - confirmations with brokers or other third parties either holding securities or who may be counter-parties;

Question 81

Substantive Procedures • Existence – This may involve the - inspection of securities on hand; - confirmations with brokers or other third parties either holding securities or who may be co______-parties;

Answer 81

Substantive Procedures • Existence – This may involve the - inspection of securities on hand; - confirmations with brokers or other third parties either holding securities or who may be counter-parties;

Question 82

Substantive Procedures • Existence – This may involve the - inspection of securities on hand; - confirmations with brokers or other third parties either holding securities or who may be counter-p_____es;

Answer 82

Substantive Procedures • Existence – This may involve the - inspection of securities on hand; - confirmations with brokers or other third parties either holding securities or who may be counter-parties;

Question 83

Substantive Procedures • Existence – This may involve the - inspection of securities on hand; - confirmations with brokers or other third parties either holding securities or who may be counter-parties; - re____ing documents;

Answer 83

Substantive Procedures • Existence – This may involve the - inspection of securities on hand; - confirmations with brokers or other third parties either holding securities or who may be counter-parties; - reviewing documents;

Question 84

Substantive Procedures • Existence – This may involve the - inspection of securities on hand; - confirmations with brokers or other third parties either holding securities or who may be counter-parties; - reviewing do_______s;

Answer 84

Substantive Procedures • Existence – This may involve the - inspection of securities on hand; - confirmations with brokers or other third parties either holding securities or who may be counter-parties; - reviewing documents;

Question 85

Substantive Procedures • Existence – This may involve the - inspection of securities on hand; - confirmations with brokers or other third parties either holding securities or who may be counter-parties; - reviewing documents; and, - when appropriate, ins______ing documentation of settlement

Answer 85

Substantive Procedures • Existence – This may involve the - inspection of securities on hand; - confirmations with brokers or other third parties either holding securities or who may be counter-parties; - reviewing documents; and, - when appropriate, inspecting documentation of settlement

Question 86

Substantive Procedures • Existence – This may involve the - inspection of securities on hand; - confirmations with brokers or other third parties either holding securities or who may be counter-parties; - reviewing documents; and, - when appropriate, inspecting do_________ of settlement or realization.

Answer 86

Substantive Procedures • Existence – This may involve the - inspection of securities on hand; - confirmations with brokers or other third parties either holding securities or who may be counter-parties; - reviewing documents; and, - when appropriate, inspecting documentation of settlement or realization.

Question 87

Substantive Procedures • Existence – This may involve the - inspection of securities on hand; - confirmations with brokers or other third parties either holding securities or who may be counter-parties; - reviewing documents; and, - when appropriate, inspecting documentation of se________ or realization.

Answer 87

Substantive Procedures • Existence – This may involve the - inspection of securities on hand; - confirmations with brokers or other third parties either holding securities or who may be counter-parties; - reviewing documents; and, - when appropriate, inspecting documentation of settlement or realization.

Question 88

Substantive Procedures • Existence – This may involve the - inspection of securities on hand; - confirmations with brokers or other third parties either holding securities or who may be counter-parties; - reviewing documents; and, - when appropriate, inspecting documentation of settlement or real_______.

Answer 88

Substantive Procedures • Existence – This may involve the - inspection of securities on hand; - confirmations with brokers or other third parties either holding securities or who may be counter-parties; - reviewing documents; and, - when appropriate, inspecting documentation of settlement or realization.

Question 89

Substantive Procedures Substantive procedures in the area of derivatives investments should be designed to test management’s assertions with regard to (PERCV): * Presentation and Disclosure * Existence * Rights and Obligations * Completeness * Valuation • Existence – This may involve the - ins______ of securities on hand; - conf_______s with brokers or other third parties either holding securities or who may be counter-parties; - rev___ing documents; and, - when appropriate, ins____ing documentation of settlement or realization. • Rights and Obligations – This may involve the review of documents and confirmations with counterparties.

Answer 89

Substantive Procedures Substantive procedures in the area of derivatives investments should be designed to test management’s assertions with regard to (PERCV): * Presentation and Disclosure * Existence * Rights and Obligations * Completeness * Valuation • Existence – This may involve the - inspection of securities on hand; - confirmations with brokers or other third parties either holding securities or who may be counter-parties; - reviewing documents; and, - when appropriate, inspecting documentation of settlement or realization. • Rights and Obligations – This may involve the review of documents and confirmations with counterparties.

Question 90

Substantive Procedures Substantive procedures in the area of derivatives investments should be designed to test management’s assertions with regard to (PERCV): * Presentation and Disclosure * Existence * Rights and Obligations * Completeness * Valuation • Rights and Obligations – This may involve the review of documents and confirmations with counter parties.

Answer 90

Substantive Procedures Substantive procedures in the area of derivatives investments should be designed to test management’s assertions with regard to (PERCV): * Presentation and Disclosure * Existence * Rights and Obligations * Completeness * Valuation • Rights and Obligations – This may involve the review of documents and confirmations with counter parties.

Question 91

Substantive Procedures • Rights and Obligations – This may involve the re____ of documents

Answer 91

Substantive Procedures • Rights and Obligations – This may involve the review of documents

Question 92

Substantive Procedures • Rights and Obligations – This may involve the review of do_______s

Answer 92

Substantive Procedures • Rights and Obligations – This may involve the review of documents

Question 93

Substantive Procedures • Rights and Obligations – This may involve the review of documents and co_________s with counter parties.

Answer 93

Substantive Procedures • Rights and Obligations – This may involve the review of documents and confirmations with counter parties.

Question 94

Substantive Procedures • Rights and Obligations – This may involve the review of documents and confirmations with co______ parties.

Answer 94

Substantive Procedures • Rights and Obligations – This may involve the review of documents and confirmations with counter parties.

Question 95

Substantive Procedures • Rights and Obligations – This may involve the review of documents and confirmations with counter p___ies.

Answer 95

Substantive Procedures • Rights and Obligations – This may involve the review of documents and confirmations with counter parties.

Question 96

Substantive Procedures Substantive procedures in the area of derivatives investments should be designed to test management’s assertions with regard to (PERCV): * Presentation and Disclosure * Existence * Rights and Obligations * Completeness * Valuation • Rights and Obligations – This may involve the re____ of documents and conf________s with counter parties. • Completeness – This may involve - review of minutes of the board of directors or others responsible for governance; - tests of subsequent transactions for evidence of realization or settlement; - confirmations with counter parties, financial institutions, brokers, and others; and - evaluating beginning amounts for disposition of inclusion in ending amounts.

Answer 96

Substantive Procedures Substantive procedures in the area of derivatives investments should be designed to test management’s assertions with regard to (PERCV): * Presentation and Disclosure * Existence * Rights and Obligations * Completeness * Valuation • Rights and Obligations – This may involve the review of documents and confirmations with counter parties. • Completeness – This may involve - review of minutes of the board of directors or others responsible for governance; - tests of subsequent transactions for evidence of realization or settlement; - confirmations with counter parties, financial institutions, brokers, and others; and - evaluating beginning amounts for disposition of inclusion in ending amounts.

Question 97

Substantive Procedures Substantive procedures in the area of derivatives investments should be designed to test management’s assertions with regard to (PERCV): * Presentation and Disclosure * Existence * Rights and Obligations * Completeness * Valuation • Completeness – This may involve - review of minutes of the board of directors or others responsible for governance; - tests of subsequent transactions for evidence of realization or settlement; - confirmations with counterparties, financial institutions, brokers, and others; and - evaluating beginning amounts for disposition of inclusion in ending amounts.

Answer 97

Substantive Procedures Substantive procedures in the area of derivatives investments should be designed to test management’s assertions with regard to (PERCV): * Presentation and Disclosure * Existence * Rights and Obligations * Completeness * Valuation • Completeness – This may involve - review of minutes of the board of directors or others responsible for governance; - tests of subsequent transactions for evidence of realization or settlement; - confirmations with counterparties, financial institutions, brokers, and others; and - evaluating beginning amounts for disposition of inclusion in ending amounts.

Question 98

Substantive Procedures • Completeness – This may involve - re____ of minutes of the board of directors or others responsible for governance;

Answer 98

Substantive Procedures • Completeness – This may involve - review of minutes of the board of directors or others responsible for governance;

Question 99

Substantive Procedures • Completeness – This may involve - review of mi____s of the board of directors

Answer 99

Substantive Procedures • Completeness – This may involve - review of minutes of the board of directors

Question 100

Substantive Procedures • Completeness – This may involve - review of minutes of the bo___ of directors

Answer 100

Substantive Procedures • Completeness – This may involve - review of minutes of the board of directors

Question 101

Substantive Procedures • Completeness – This may involve - review of minutes of the board of di_____s or others responsible for governance;

Answer 101

Substantive Procedures • Completeness – This may involve - review of minutes of the board of directors or others responsible for governance;

Question 102

Substantive Procedures • Completeness – This may involve - review of minutes of the board of directors or others responsible for gov_________;

Answer 102

Substantive Procedures • Completeness – This may involve - review of minutes of the board of directors or others responsible for governance;

Question 103

Substantive Procedures • Completeness – This may involve - review of minutes of the board of directors or o____s responsible for governance;

Answer 103

Substantive Procedures • Completeness – This may involve - review of minutes of the board of directors or others responsible for governance;

Question 104

Substantive Procedures • Completeness – This may involve - review of minutes of the board of directors or others responsible for governance; - t___s of subsequent transactions

Answer 104

Substantive Procedures • Completeness – This may involve - review of minutes of the board of directors or others responsible for governance; - tests of subsequent transactions

Question 105

Substantive Procedures • Completeness – This may involve - review of minutes of the board of directors or others responsible for governance; - tests of sub________ transactions

Answer 105

Substantive Procedures • Completeness – This may involve - review of minutes of the board of directors or others responsible for governance; - tests of subsequent transactions

Question 106

Substantive Procedures • Completeness – This may involve - review of minutes of the board of directors or others responsible for governance; - tests of subsequent tra_________s for evidence of realization or settlement;

Answer 106

Substantive Procedures • Completeness – This may involve - review of minutes of the board of directors or others responsible for governance; - tests of subsequent transactions for evidence of realization or settlement;

Question 107

Substantive Procedures • Completeness – This may involve - review of minutes of the board of directors or others responsible for governance; - tests of subsequent transactions for ev________of realization or settlement;

Answer 107

Substantive Procedures • Completeness – This may involve - review of minutes of the board of directors or others responsible for governance; - tests of subsequent transactions for evidence of realization or settlement;

Question 108

Substantive Procedures • Completeness – This may involve - review of minutes of the board of directors or others responsible for governance; - tests of subsequent transactions for evidence of re_________ or settlement;

Answer 108

Substantive Procedures • Completeness – This may involve - review of minutes of the board of directors or others responsible for governance; - tests of subsequent transactions for evidence of realization or settlement;

Question 109

Substantive Procedures • Completeness – This may involve - review of minutes of the board of directors or others responsible for governance; - tests of subsequent transactions for evidence of realization or set_________;

Answer 109

Substantive Procedures • Completeness – This may involve - review of minutes of the board of directors or others responsible for governance; - tests of subsequent transactions for evidence of realization or settlement;

Question 110

Substantive Procedures • Completeness – This may involve - review of minutes of the board of directors or others responsible for governance; - tests of subsequent transactions for evidence of realization or settlement; - con_________s with counter-parties,

Answer 110

Substantive Procedures • Completeness – This may involve - review of minutes of the board of directors or others responsible for governance; - tests of subsequent transactions for evidence of realization or settlement; - confirmations with counter-parties,

Question 111

Substantive Procedures • Completeness – This may involve - review of minutes of the board of directors or others responsible for governance; - tests of subsequent transactions for evidence of realization or settlement; - confirmations with c________-parties,

Answer 111

Substantive Procedures • Completeness – This may involve - review of minutes of the board of directors or others responsible for governance; - tests of subsequent transactions for evidence of realization or settlement; - confirmations with counter-parties,

Question 112

Substantive Procedures • Completeness – This may involve - review of minutes of the board of directors or others responsible for governance; - tests of subsequent transactions for evidence of realization or settlement; - confirmations with counter-p___ies, financial institutions,

Answer 112

Substantive Procedures • Completeness – This may involve - review of minutes of the board of directors or others responsible for governance; - tests of subsequent transactions for evidence of realization or settlement; - confirmations with counter-parties, financial institutions,

Question 113

Substantive Procedures • Completeness – This may involve - review of minutes of the board of directors or others responsible for governance; - tests of subsequent transactions for evidence of realization or settlement; - confirmations with counter-parties, fi________ institutions,

Answer 113

Substantive Procedures • Completeness – This may involve - review of minutes of the board of directors or others responsible for governance; - tests of subsequent transactions for evidence of realization or settlement; - confirmations with counter-parties, financial institutions,

Question 114

Substantive Procedures • Completeness – This may involve - review of minutes of the board of directors or others responsible for governance; - tests of subsequent transactions for evidence of realization or settlement; - confirmations with counter-parties, financial in_________s, brokers,

Answer 114

Substantive Procedures • Completeness – This may involve - review of minutes of the board of directors or others responsible for governance; - tests of subsequent transactions for evidence of realization or settlement; - confirmations with counter-parties, financial institutions, brokers,

Question 115

Substantive Procedures • Completeness – This may involve - review of minutes of the board of directors or others responsible for governance; - tests of subsequent transactions for evidence of realization or settlement; - confirmations with counter-parties, financial institutions, br_____s, and others;

Answer 115

Substantive Procedures • Completeness – This may involve - review of minutes of the board of directors or others responsible for governance; - tests of subsequent transactions for evidence of realization or settlement; - confirmations with counter-parties, financial institutions, brokers, and others;

Question 116

Substantive Procedures • Completeness – This may involve - review of minutes of the board of directors or others responsible for governance; - tests of subsequent transactions for evidence of realization or settlement; - confirmations with counter-parties, financial institutions, brokers, and others; and - ev_______ing beginning amounts

Answer 116

Substantive Procedures • Completeness – This may involve - review of minutes of the board of directors or others responsible for governance; - tests of subsequent transactions for evidence of realization or settlement; - confirmations with counter-parties, financial institutions, brokers, and others; and - evaluating beginning amounts

Question 117

Substantive Procedures • Completeness – This may involve - review of minutes of the board of directors or others responsible for governance; - tests of subsequent transactions for evidence of realization or settlement; - confirmations with counter-parties, financial institutions, brokers, and others; and - evaluating be______ing amounts

Answer 117

Substantive Procedures • Completeness – This may involve - review of minutes of the board of directors or others responsible for governance; - tests of subsequent transactions for evidence of realization or settlement; - confirmations with counter-parties, financial institutions, brokers, and others; and - evaluating beginning amounts

Question 118

Substantive Procedures • Completeness – This may involve - review of minutes of the board of directors or others responsible for governance; - tests of subsequent transactions for evidence of realization or settlement; - confirmations with counter-parties, financial institutions, brokers, and others; and - evaluating beginning a________s for disposition of inclusion in ending amounts.

Answer 118

Substantive Procedures • Completeness – This may involve - review of minutes of the board of directors or others responsible for governance; - tests of subsequent transactions for evidence of realization or settlement; - confirmations with counter-parties, financial institutions, brokers, and others; and - evaluating beginning amounts for disposition of inclusion in ending amounts.

Question 119

Substantive Procedures • Completeness – This may involve - review of minutes of the board of directors or others responsible for governance; - tests of subsequent transactions for evidence of realization or settlement; - confirmations with counter-parties, financial institutions, brokers, and others; and - evaluating beginning amounts for dis_________ of inclusion in ending amounts.

Answer 119

Substantive Procedures • Completeness – This may involve - review of minutes of the board of directors or others responsible for governance; - tests of subsequent transactions for evidence of realization or settlement; - confirmations with counter-parties, financial institutions, brokers, and others; and - evaluating beginning amounts for disposition of inclusion in ending amounts.

Question 120

Substantive Procedures • Completeness – This may involve - review of minutes of the board of directors or others responsible for governance; - tests of subsequent transactions for evidence of realization or settlement; - confirmations with counter-parties, financial institutions, brokers, and others; and - evaluating beginning amounts for disposition of inc________ in ending amounts.

Answer 120

Substantive Procedures • Completeness – This may involve - review of minutes of the board of directors or others responsible for governance; - tests of subsequent transactions for evidence of realization or settlement; - confirmations with counter-parties, financial institutions, brokers, and others; and - evaluating beginning amounts for disposition of inclusion in ending amounts.

Question 121

Substantive Procedures • Completeness – This may involve - review of minutes of the board of directors or others responsible for governance; - tests of subsequent transactions for evidence of realization or settlement; - confirmations with counter-parties, financial institutions, brokers, and others; and - evaluating beginning amounts for disposition of inclusion in e__ing amounts.

Answer 121

Substantive Procedures • Completeness – This may involve - review of minutes of the board of directors or others responsible for governance; - tests of subsequent transactions for evidence of realization or settlement; - confirmations with counter-parties, financial institutions, brokers, and others; and - evaluating beginning amounts for disposition of inclusion in ending amounts.

Question 122

Substantive Procedures • Completeness – This may involve - review of minutes of the board of directors or others responsible for governance; - tests of subsequent transactions for evidence of realization or settlement; - confirmations with counter-parties, financial institutions, brokers, and others; and - evaluating beginning amounts for disposition of inclusion in ending am_____s.

Answer 122

Substantive Procedures • Completeness – This may involve - review of minutes of the board of directors or others responsible for governance; - tests of subsequent transactions for evidence of realization or settlement; - confirmations with counter-parties, financial institutions, brokers, and others; and - evaluating beginning amounts for disposition of inclusion in ending amounts.

Question 123

Substantive Procedures Substantive procedures in the area of derivatives investments should be designed to test management’s assertions with regard to (PERCV): * Presentation and Disclosure * Existence * Rights and Obligations * Completeness * Valuation • Completeness – This may involve - re____ of minutes of the board of directors or others responsible for governance; - t___s of subsequent transactions for evidence of realization or settlement; - conf________s with counter-parties, financial institutions, brokers, and others; and - eva____ing beginning amounts for disposition of inclusion in ending amounts. • Valuation: o For valuation based on cost: ▪ Inspection of documentation ▪ Confirmation o For valuation based on financial results of investee: ▪ Obtaining audit evidence supporting investee’s results ▪ Reading available financial statements of investee o For valuation based on fair value: ▪ Obtaining quoted market prices on exchanges when available ▪ Obtaining quoted market prices from broker-dealers for unlisted securities ▪ Obtaining estimates, including those using models like Black-Scholes

Answer 123

Substantive Procedures Substantive procedures in the area of derivatives investments should be designed to test management’s assertions with regard to (PERCV): * Presentation and Disclosure * Existence * Rights and Obligations * Completeness * Valuation • Completeness – This may involve - review of minutes of the board of directors or others responsible for governance; - tests of subsequent transactions for evidence of realization or settlement; - confirmations with counter-parties, financial institutions, brokers, and others; and - evaluating beginning amounts for disposition of inclusion in ending amounts. • Valuation: o For valuation based on cost: ▪ Inspection of documentation ▪ Confirmation o For valuation based on financial results of investee: ▪ Obtaining audit evidence supporting investee’s results ▪ Reading available financial statements of investee o For valuation based on fair value: ▪ Obtaining quoted market prices on exchanges when available ▪ Obtaining quoted market prices from broker-dealers for unlisted securities ▪ Obtaining estimates, including those using models like Black-Scholes

Question 124

Substantive Procedures Substantive procedures in the area of derivatives investments should be designed to test management’s assertions with regard to (PERCV): * Presentation and Disclosure * Existence * Rights and Obligations * Completeness * Valuation • Valuation: o For valuation based on cost: ▪ Inspection of documentation ▪ Confirmation o For valuation based on financial results of investee: ▪ Obtaining audit evidence supporting investee’s results ▪ Reading available financial statements of investee o For valuation based on fair value: ▪ Obtaining quoted market prices on exchanges when available ▪ Obtaining quoted market prices from broker-dealers for unlisted securities ▪ Obtaining estimates, including those using models like Black-Scholes

Answer 124

Substantive Procedures Substantive procedures in the area of derivatives investments should be designed to test management’s assertions with regard to (PERCV): * Presentation and Disclosure * Existence * Rights and Obligations * Completeness * Valuation • Valuation: o For valuation based on cost: ▪ Inspection of documentation ▪ Confirmation o For valuation based on financial results of investee: ▪ Obtaining audit evidence supporting investee’s results ▪ Reading available financial statements of investee o For valuation based on fair value: ▪ Obtaining quoted market prices on exchanges when available ▪ Obtaining quoted market prices from broker-dealers for unlisted securities ▪ Obtaining estimates, including those using models like Black-Scholes

Question 125

Substantive Procedures • Valuation: o For va________ based on cost:

Answer 125

Substantive Procedures • Valuation: o For valuation based on cost:

Question 126

Substantive Procedures • Valuation: o For valuation based on c__t: ▪ Inspection of documentation

Answer 126

Substantive Procedures • Valuation: o For valuation based on cost: ▪ Inspection of documentation

Question 127

Substantive Procedures • Valuation: o For valuation based on cost: ▪ Ins________ of documentation

Answer 127

Substantive Procedures • Valuation: o For valuation based on cost: ▪ Inspection of documentation

Question 128

Substantive Procedures • Valuation: o For valuation based on cost: ▪ Inspection of do____________ ▪ Confirmation

Answer 128

Substantive Procedures • Valuation: o For valuation based on cost: ▪ Inspection of documentation ▪ Confirmation

Question 129

Substantive Procedures • Valuation: o For valuation based on cost: ▪ Inspection of documentation ▪ Confi_______

Answer 129

Substantive Procedures • Valuation: o For valuation based on cost: ▪ Inspection of documentation ▪ Confirmation

Question 130

Substantive Procedures • Valuation: o For valuation based on cost: ▪ Inspection of documentation ▪ Confirmation o For va_________ based on financial results of investee:

Answer 130

Substantive Procedures • Valuation: o For valuation based on cost: ▪ Inspection of documentation ▪ Confirmation o For valuation based on financial results of investee:

Question 131

Substantive Procedures • Valuation: o For valuation based on cost: ▪ Inspection of documentation ▪ Confirmation o For valuation based on fin_______ results of investee:

Answer 131

Substantive Procedures • Valuation: o For valuation based on cost: ▪ Inspection of documentation ▪ Confirmation o For valuation based on financial results of investee:

Question 132

Substantive Procedures • Valuation: o For valuation based on cost: ▪ Inspection of documentation ▪ Confirmation o For valuation based on financial re____s of investee:

Answer 132

Substantive Procedures • Valuation: o For valuation based on cost: ▪ Inspection of documentation ▪ Confirmation o For valuation based on financial results of investee:

Question 133

Substantive Procedures • Valuation: o For valuation based on financial results of inv______: ▪ Obtaining audit evidence

Answer 133

Substantive Procedures • Valuation: o For valuation based on financial results of investee: ▪ Obtaining audit evidence

Question 134

Substantive Procedures • Valuation: o For valuation based on financial results of investee: ▪ Ob____ng audit evidence

Answer 134

Substantive Procedures • Valuation: o For valuation based on financial results of investee: ▪ Obtaining audit evidence

Question 135

Substantive Procedures • Valuation: o For valuation based on financial results of investee: ▪ Obtaining au___ evidence

Answer 135

Substantive Procedures • Valuation: o For valuation based on financial results of investee: ▪ Obtaining audit evidence

Question 136

Substantive Procedures • Valuation: o For valuation based on financial results of investee: ▪ Obtaining audit ev_______ supporting investee’s results

Answer 136

Substantive Procedures • Valuation: o For valuation based on financial results of investee: ▪ Obtaining audit evidence supporting investee’s results

Question 137

Substantive Procedures • Valuation: o For valuation based on financial results of investee: ▪ Obtaining audit evidence su______ing investee’s results

Answer 137

Substantive Procedures • Valuation: o For valuation based on financial results of investee: ▪ Obtaining audit evidence supporting investee’s results

Question 138

Substantive Procedures • Valuation: o For valuation based on financial results of investee: ▪ Obtaining audit evidence supporting investee’s re____s

Answer 138

Substantive Procedures • Valuation: o For valuation based on financial results of investee: ▪ Obtaining audit evidence supporting investee’s results

Question 139

Substantive Procedures • Valuation: o For valuation based on financial results of investee: ▪ Obtaining audit evidence supporting in_______’s results ▪ Reading available financial statements of investee

Answer 139

Substantive Procedures • Valuation: o For valuation based on financial results of investee: ▪ Obtaining audit evidence supporting investee’s results ▪ Reading available financial statements of investee

Question 140

Substantive Procedures • Valuation: o For valuation based on financial results of investee: ▪ Obtaining audit evidence supporting investee’s results ▪ R____ing available financial statements of investee

Answer 140

Substantive Procedures • Valuation: o For valuation based on financial results of investee: ▪ Obtaining audit evidence supporting investee’s results ▪ Reading available financial statements of investee

Question 141

Substantive Procedures • Valuation: o For valuation based on financial results of investee: ▪ Obtaining audit evidence supporting investee’s results ▪ Reading available fin_______ statements of investee

Answer 141

Substantive Procedures • Valuation: o For valuation based on financial results of investee: ▪ Obtaining audit evidence supporting investee’s results ▪ Reading available financial statements of investee

Question 142

Substantive Procedures • Valuation: o For valuation based on financial results of investee: ▪ Obtaining audit evidence supporting investee’s results ▪ Reading available financial statements of inv________

Answer 142

Substantive Procedures • Valuation: o For valuation based on financial results of investee: ▪ Obtaining audit evidence supporting investee’s results ▪ Reading available financial statements of investee

Question 143

Substantive Procedures • Valuation: o For valuation based on financial results of investee: ▪ Obtaining audit evidence supporting investee’s results ▪ Reading available financial statements of investee o For val_______ based on fair value:

Answer 143

Substantive Procedures • Valuation: o For valuation based on financial results of investee: ▪ Obtaining audit evidence supporting investee’s results ▪ Reading available financial statements of investee o For valuation based on fair value:

Question 144

Substantive Procedures • Valuation: o For valuation based on financial results of investee: ▪ Obtaining audit evidence supporting investee’s results ▪ Reading available financial statements of investee o For valuation based on f___ value:

Answer 144

Substantive Procedures • Valuation: o For valuation based on financial results of investee: ▪ Obtaining audit evidence supporting investee’s results ▪ Reading available financial statements of investee o For valuation based on fair value:

Question 145

Substantive Procedures • Valuation: o For valuation based on fair va___: ▪ Obtaining quoted market prices on exchanges

Answer 145

Substantive Procedures • Valuation: o For valuation based on fair value: ▪ Obtaining quoted market prices on exchanges

Question 146

Substantive Procedures • Valuation: o For valuation based on fair value: ▪ Ob____ing quoted market prices on exchanges

Answer 146

Substantive Procedures • Valuation: o For valuation based on fair value: ▪ Obtaining quoted market prices on exchanges

Question 147

Substantive Procedures • Valuation: o For valuation based on fair value: ▪ Obtaining q___ed market prices on exchanges

Answer 147

Substantive Procedures • Valuation: o For valuation based on fair value: ▪ Obtaining quoted market prices on exchanges

Question 148

Substantive Procedures • Valuation: o For valuation based on fair value: ▪ Obtaining quoted ma___t prices on exchanges

Answer 148

Substantive Procedures • Valuation: o For valuation based on fair value: ▪ Obtaining quoted market prices on exchanges

Question 149

Substantive Procedures • Valuation: o For valuation based on fair value: ▪ Obtaining quoted market p___es on exchanges

Answer 149

Substantive Procedures • Valuation: o For valuation based on fair value: ▪ Obtaining quoted market prices on exchanges

Question 150

Substantive Procedures • Valuation: o For valuation based on fair value: ▪ Obtaining quoted market prices on exc______s when available

Answer 150

Substantive Procedures • Valuation: o For valuation based on fair value: ▪ Obtaining quoted market prices on exchanges when available

Question 151

Substantive Procedures • Valuation: o For valuation based on fair value: ▪ Obtaining quoted market prices on exchanges when available ▪ Ob____ing quoted market prices from broker-dealers

Answer 151

Substantive Procedures • Valuation: o For valuation based on fair value: ▪ Obtaining quoted market prices on exchanges when available ▪ Obtaining quoted market prices from broker-dealers

Question 152

Substantive Procedures • Valuation: o For valuation based on fair value: ▪ Obtaining quoted market prices on exchanges when available ▪ Obtaining quoted ma_____ prices from broker-dealers

Answer 152

Substantive Procedures • Valuation: o For valuation based on fair value: ▪ Obtaining quoted market prices on exchanges when available ▪ Obtaining quoted market prices from broker-dealers

Question 153

Substantive Procedures • Valuation: o For valuation based on fair value: ▪ Obtaining quoted market prices on exchanges when available ▪ Obtaining q___ed market prices from broker-dealers

Answer 153

Substantive Procedures • Valuation: o For valuation based on fair value: ▪ Obtaining quoted market prices on exchanges when available ▪ Obtaining quoted market prices from broker-dealers

Question 154

Substantive Procedures • Valuation: o For valuation based on fair value: ▪ Obtaining quoted market prices on exchanges when available ▪ Obtaining quoted market prices from br_____-dealers

Answer 154

Substantive Procedures • Valuation: o For valuation based on fair value: ▪ Obtaining quoted market prices on exchanges when available ▪ Obtaining quoted market prices from broker-dealers

Question 155

Substantive Procedures • Valuation: o For valuation based on fair value: ▪ Obtaining quoted market prices on exchanges when available ▪ Obtaining quoted market prices from broker-d____ers for unlisted securities

Answer 155

Substantive Procedures • Valuation: o For valuation based on fair value: ▪ Obtaining quoted market prices on exchanges when available ▪ Obtaining quoted market prices from broker-dealers for unlisted securities

Question 156

Substantive Procedures • Valuation: o For valuation based on fair value: ▪ Obtaining quoted market prices on exchanges when available ▪ Obtaining quoted market prices from broker-dealers for un____ed securities

Answer 156

Substantive Procedures • Valuation: o For valuation based on fair value: ▪ Obtaining quoted market prices on exchanges when available ▪ Obtaining quoted market prices from broker-dealers for unlisted securities

Question 157

Substantive Procedures • Valuation: o For valuation based on fair value: ▪ Obtaining quoted market prices on exchanges when available ▪ Obtaining quoted market prices from broker-dealers for unlisted se_____ies

Answer 157

Substantive Procedures • Valuation: o For valuation based on fair value: ▪ Obtaining quoted market prices on exchanges when available ▪ Obtaining quoted market prices from broker-dealers for unlisted securities

Question 158

Substantive Procedures • Valuation: o For valuation based on fair value: ▪ Obtaining quoted market prices on exchanges when available ▪ Obtaining quoted market prices from broker-dealers for unlisted securities ▪ Ob____ing estimates,

Answer 158

Substantive Procedures • Valuation: o For valuation based on fair value: ▪ Obtaining quoted market prices on exchanges when available ▪ Obtaining quoted market prices from broker-dealers for unlisted securities ▪ Obtaining estimates,

Question 159

Substantive Procedures • Valuation: o For valuation based on fair value: ▪ Obtaining quoted market prices on exchanges when available ▪ Obtaining quoted market prices from broker-dealers for unlisted securities ▪ Obtaining es________s, including those using models like Black-Scholes

Answer 159

Substantive Procedures • Valuation: o For valuation based on fair value: ▪ Obtaining quoted market prices on exchanges when available ▪ Obtaining quoted market prices from broker-dealers for unlisted securities ▪ Obtaining estimates, including those using models like Black-Scholes

Question 160

Substantive Procedures • Valuation: o For valuation based on fair value: ▪ Obtaining quoted market prices on exchanges when available ▪ Obtaining quoted market prices from broker-dealers for unlisted securities ▪ Obtaining estimates, including those using mo___s like Black-Scholes

Answer 160

Substantive Procedures • Valuation: o For valuation based on fair value: ▪ Obtaining quoted market prices on exchanges when available ▪ Obtaining quoted market prices from broker-dealers for unlisted securities ▪ Obtaining estimates, including those using models like Black-Scholes

Question 161

Substantive Procedures • Valuation: o For valuation based on fair value: ▪ Obtaining quoted market prices on exchanges when available ▪ Obtaining quoted market prices from broker-dealers for unlisted securities ▪ Obtaining estimates, including those using models like Bl__k-Scholes

Answer 161

Substantive Procedures • Valuation: o For valuation based on fair value: ▪ Obtaining quoted market prices on exchanges when available ▪ Obtaining quoted market prices from broker-dealers for unlisted securities ▪ Obtaining estimates, including those using models like Black-Scholes

Question 162

Substantive Procedures • Valuation: o For valuation based on fair value: ▪ Obtaining quoted market prices on exchanges when available ▪ Obtaining quoted market prices from broker-dealers for unlisted securities ▪ Obtaining estimates, including those using models like Black-Sc___es

Answer 162

Substantive Procedures • Valuation: o For valuation based on fair value: ▪ Obtaining quoted market prices on exchanges when available ▪ Obtaining quoted market prices from broker-dealers for unlisted securities ▪ Obtaining estimates, including those using models like Black-Scholes

Question 163

Substantive Procedures • Valuation: o For valuation based on c__t: o For valuation based on financial re____s of investee: o For valuation based on f___ value:

Answer 163

Substantive Procedures • Valuation: o For valuation based on cost: o For valuation based on financial results of investee: o For valuation based on fair value:

Question 164

Substantive Procedures • Valuation: o For valuation based on cost: o For valuation based on financial r_____s of in_______: o For valuation based on fair value:

Answer 164

Substantive Procedures • Valuation: o For valuation based on cost: o For valuation based on financial results of investee: o For valuation based on fair value:

Question 165

Substantive Procedures • Valuation: o For valuation based on c___: o For valuation based on financial results of investee: o For valuation based on fair v____:

Answer 165

Substantive Procedures • Valuation: o For valuation based on cost: o For valuation based on financial results of investee: o For valuation based on fair value:

Question 166

Substantive Procedures • Valuation: o For valuation based on cost: ▪ Ins________ of documentation ▪ Confi_______ o For valuation based on financial results of investee: ▪ Obtaining audit evidence supporting investee’s results ▪ Reading available financial statements of investee o For valuation based on fair value: ▪ Obtaining quoted market prices on exchanges when available ▪ Obtaining quoted market prices from broker-dealers for unlisted securities ▪ Obtaining estimates, including those using models like Black-Scholes

Answer 166

Substantive Procedures • Valuation: o For valuation based on cost: ▪ Inspection of documentation ▪ Confirmation o For valuation based on financial results of investee: ▪ Obtaining audit evidence supporting investee’s results ▪ Reading available financial statements of investee o For valuation based on fair value: ▪ Obtaining quoted market prices on exchanges when available ▪ Obtaining quoted market prices from broker-dealers for unlisted securities ▪ Obtaining estimates, including those using models like Black-Scholes

Question 167

Substantive Procedures • Valuation: o For valuation based on cost: ▪ Inspection of documentation ▪ Confirmation o For valuation based on financial results of investee: ▪ Ob____ing audit evi_______ supporting investee’s results ▪ Reading available financial statements of investee o For valuation based on fair value: ▪ Obtaining quoted market prices on exchanges when available ▪ Obtaining quoted market prices from broker-dealers for unlisted securities ▪ Obtaining estimates, including those using models like Black-Scholes

Answer 167

Substantive Procedures • Valuation: o For valuation based on cost: ▪ Inspection of documentation ▪ Confirmation o For valuation based on financial results of investee: ▪ Obtaining audit evidence supporting investee’s results ▪ Reading available financial statements of investee o For valuation based on fair value: ▪ Obtaining quoted market prices on exchanges when available ▪ Obtaining quoted market prices from broker-dealers for unlisted securities ▪ Obtaining estimates, including those using models like Black-Scholes

Question 168

Substantive Procedures • Valuation: o For valuation based on cost: ▪ Inspection of documentation ▪ Confirmation o For valuation based on financial results of investee: ▪ Obtaining au___ evid_____ supporting investee’s results ▪ Reading available financial statements of investee o For valuation based on fair value: ▪ Obtaining quoted market prices on exchanges when available ▪ Obtaining quoted market prices from broker-dealers for unlisted securities ▪ Obtaining estimates, including those using models like Black-Scholes

Answer 168

Substantive Procedures • Valuation: o For valuation based on cost: ▪ Inspection of documentation ▪ Confirmation o For valuation based on financial results of investee: ▪ Obtaining audit evidence supporting investee’s results ▪ Reading available financial statements of investee o For valuation based on fair value: ▪ Obtaining quoted market prices on exchanges when available ▪ Obtaining quoted market prices from broker-dealers for unlisted securities ▪ Obtaining estimates, including those using models like Black-Scholes

Question 169

Substantive Procedures • Valuation: o For valuation based on cost: ▪ Inspection of documentation ▪ Confirmation o For valuation based on financial results of investee: ▪ Obtaining audit evidence su_______ing investee’s re____s ▪ Reading available financial statements of investee o For valuation based on fair value: ▪ Obtaining quoted market prices on exchanges when available ▪ Obtaining quoted market prices from broker-dealers for unlisted securities ▪ Obtaining estimates, including those using models like Black-Scholes

Answer 169

Substantive Procedures • Valuation: o For valuation based on cost: ▪ Inspection of documentation ▪ Confirmation o For valuation based on financial results of investee: ▪ Obtaining audit evidence supporting investee’s results ▪ Reading available financial statements of investee o For valuation based on fair value: ▪ Obtaining quoted market prices on exchanges when available ▪ Obtaining quoted market prices from broker-dealers for unlisted securities ▪ Obtaining estimates, including those using models like Black-Scholes

Question 170

Substantive Procedures • Valuation: o For valuation based on cost: ▪ Inspection of documentation ▪ Confirmation o For valuation based on financial results of investee: ▪ Ob____ing audit evi_______ supporting investee’s results ▪ Reading available financial statements of investee o For valuation based on fair value: ▪ Obtaining quoted market prices on exchanges when available ▪ Obtaining quoted market prices from broker-dealers for unlisted securities ▪ Obtaining estimates, including those using models like Black-Scholes

Answer 170

Substantive Procedures • Valuation: o For valuation based on cost: ▪ Inspection of documentation ▪ Confirmation o For valuation based on financial results of investee: ▪ Obtaining audit evidence supporting investee’s results ▪ Reading available financial statements of investee o For valuation based on fair value: ▪ Obtaining quoted market prices on exchanges when available ▪ Obtaining quoted market prices from broker-dealers for unlisted securities ▪ Obtaining estimates, including those using models like Black-Scholes

Question 171

Substantive Procedures • Valuation: o For valuation based on cost: ▪ Inspection of documentation ▪ Confirmation o For valuation based on financial results of investee: ▪ Obtaining audit evidence supporting investee’s results ▪ R___ing available financial sta______s of investee o For valuation based on fair value: ▪ Obtaining quoted market prices on exchanges when available ▪ Obtaining quoted market prices from broker-dealers for unlisted securities ▪ Obtaining estimates, including those using models like Black-Scholes

Answer 171

Substantive Procedures • Valuation: o For valuation based on cost: ▪ Inspection of documentation ▪ Confirmation o For valuation based on financial results of investee: ▪ Obtaining audit evidence supporting investee’s results ▪ Reading available financial statements of investee o For valuation based on fair value: ▪ Obtaining quoted market prices on exchanges when available ▪ Obtaining quoted market prices from broker-dealers for unlisted securities ▪ Obtaining estimates, including those using models like Black-Scholes

Question 172

Substantive Procedures • Valuation: o For valuation based on cost: ▪ Inspection of documentation ▪ Confirmation o For valuation based on financial results of investee: ▪ Obtaining audit evidence supporting investee’s results ▪ Reading available fin_______ statements of in_______ o For valuation based on fair value: ▪ Obtaining quoted market prices on exchanges when available ▪ Obtaining quoted market prices from broker-dealers for unlisted securities ▪ Obtaining estimates, including those using models like Black-Scholes

Answer 172

Substantive Procedures • Valuation: o For valuation based on cost: ▪ Inspection of documentation ▪ Confirmation o For valuation based on financial results of investee: ▪ Obtaining audit evidence supporting investee’s results ▪ Reading available financial statements of investee o For valuation based on fair value: ▪ Obtaining quoted market prices on exchanges when available ▪ Obtaining quoted market prices from broker-dealers for unlisted securities ▪ Obtaining estimates, including those using models like Black-Scholes

Question 173

Substantive Procedures • Valuation: o For valuation based on cost: ▪ Inspection of documentation ▪ Confirmation o For valuation based on financial results of investee: ▪ Obtaining audit evidence supporting investee’s results ▪ Reading available financial statements of investee o For valuation based on fair value: ▪ O_____ing quoted market p____s on exchanges when available ▪ Obtaining quoted market prices from broker-dealers for unlisted securities ▪ Obtaining estimates, including those using models like Black-Scholes

Answer 173

Substantive Procedures • Valuation: o For valuation based on cost: ▪ Inspection of documentation ▪ Confirmation o For valuation based on financial results of investee: ▪ Obtaining audit evidence supporting investee’s results ▪ Reading available financial statements of investee o For valuation based on fair value: ▪ Obtaining quoted market prices on exchanges when available ▪ Obtaining quoted market prices from broker-dealers for unlisted securities ▪ Obtaining estimates, including those using models like Black-Scholes

Question 174

Substantive Procedures • Valuation: o For valuation based on cost: ▪ Inspection of documentation ▪ Confirmation o For valuation based on financial results of investee: ▪ Obtaining audit evidence supporting investee’s results ▪ Reading available financial statements of investee o For valuation based on fair value: ▪ Obtaining quoted ma____ pr___s on exchanges when available ▪ Obtaining quoted market prices from broker-dealers for unlisted securities ▪ Obtaining estimates, including those using models like Black-Scholes

Answer 174

Substantive Procedures • Valuation: o For valuation based on cost: ▪ Inspection of documentation ▪ Confirmation o For valuation based on financial results of investee: ▪ Obtaining audit evidence supporting investee’s results ▪ Reading available financial statements of investee o For valuation based on fair value: ▪ Obtaining quoted market prices on exchanges when available ▪ Obtaining quoted market prices from broker-dealers for unlisted securities ▪ Obtaining estimates, including those using models like Black-Scholes

Question 175

Substantive Procedures • Valuation: o For valuation based on cost: ▪ Inspection of documentation ▪ Confirmation o For valuation based on financial results of investee: ▪ Obtaining audit evidence supporting investee’s results ▪ Reading available financial statements of investee o For valuation based on fair value: ▪ Obtaining quoted market prices o_ ex_______s when available ▪ Obtaining quoted market prices from broker-dealers for unlisted securities ▪ Obtaining estimates, including those using models like Black-Scholes

Answer 175

Substantive Procedures • Valuation: o For valuation based on cost: ▪ Inspection of documentation ▪ Confirmation o For valuation based on financial results of investee: ▪ Obtaining audit evidence supporting investee’s results ▪ Reading available financial statements of investee o For valuation based on fair value: ▪ Obtaining quoted market prices on exchanges when available ▪ Obtaining quoted market prices from broker-dealers for unlisted securities ▪ Obtaining estimates, including those using models like Black-Scholes

Question 176

Substantive Procedures • Valuation: o For valuation based on cost: ▪ Inspection of documentation ▪ Confirmation o For valuation based on financial results of investee: ▪ Obtaining audit evidence supporting investee’s results ▪ Reading available financial statements of investee o For valuation based on fair value: ▪ Obtaining q___ed market pr___s on exchanges when available ▪ Obtaining quoted market prices from broker-dealers for unlisted securities ▪ Obtaining estimates, including those using models like Black-Scholes

Answer 176

Substantive Procedures • Valuation: o For valuation based on cost: ▪ Inspection of documentation ▪ Confirmation o For valuation based on financial results of investee: ▪ Obtaining audit evidence supporting investee’s results ▪ Reading available financial statements of investee o For valuation based on fair value: ▪ Obtaining quoted market prices on exchanges when available ▪ Obtaining quoted market prices from broker-dealers for unlisted securities ▪ Obtaining estimates, including those using models like Black-Scholes

Question 177

Substantive Procedures • Valuation: o For valuation based on cost: ▪ Inspection of documentation ▪ Confirmation o For valuation based on financial results of investee: ▪ Obtaining audit evidence supporting investee’s results ▪ Reading available financial statements of investee o For valuation based on fair value: ▪ Obtaining quoted market prices on exchanges when available ▪ O_____ing quoted market pr___s from broker-dealers for unlisted securities ▪ Obtaining estimates, including those using models like Black-Scholes

Answer 177

Substantive Procedures • Valuation: o For valuation based on cost: ▪ Inspection of documentation ▪ Confirmation o For valuation based on financial results of investee: ▪ Obtaining audit evidence supporting investee’s results ▪ Reading available financial statements of investee o For valuation based on fair value: ▪ Obtaining quoted market prices on exchanges when available ▪ Obtaining quoted market prices from broker-dealers for unlisted securities ▪ Obtaining estimates, including those using models like Black-Scholes

Question 178

Substantive Procedures • Valuation: o For valuation based on cost: ▪ Inspection of documentation ▪ Confirmation o For valuation based on financial results of investee: ▪ Obtaining audit evidence supporting investee’s results ▪ Reading available financial statements of investee o For valuation based on fair value: ▪ Obtaining quoted market prices on exchanges when available ▪ Obtaining quoted market prices from b_____-dealers for unlisted sec______s ▪ Obtaining estimates, including those using models like Black-Scholes

Answer 178

Substantive Procedures • Valuation: o For valuation based on cost: ▪ Inspection of documentation ▪ Confirmation o For valuation based on financial results of investee: ▪ Obtaining audit evidence supporting investee’s results ▪ Reading available financial statements of investee o For valuation based on fair value: ▪ Obtaining quoted market prices on exchanges when available ▪ Obtaining quoted market prices from broker-dealers for unlisted securities ▪ Obtaining estimates, including those using models like Black-Scholes

Question 179

Substantive Procedures • Valuation: o For valuation based on cost: ▪ Inspection of documentation ▪ Confirmation o For valuation based on financial results of investee: ▪ Obtaining audit evidence supporting investee’s results ▪ Reading available financial statements of investee o For valuation based on fair value: ▪ Obtaining quoted market prices on exchanges when available ▪ Obtaining quoted market prices from broker-de____s for un____ed securities ▪ Obtaining estimates, including those using models like Black-Scholes

Answer 179

Substantive Procedures • Valuation: o For valuation based on cost: ▪ Inspection of documentation ▪ Confirmation o For valuation based on financial results of investee: ▪ Obtaining audit evidence supporting investee’s results ▪ Reading available financial statements of investee o For valuation based on fair value: ▪ Obtaining quoted market prices on exchanges when available ▪ Obtaining quoted market prices from broker-dealers for unlisted securities ▪ Obtaining estimates, including those using models like Black-Scholes

Question 180

Substantive Procedures • Valuation: o For valuation based on cost: ▪ Inspection of documentation ▪ Confirmation o For valuation based on financial results of investee: ▪ Obtaining audit evidence supporting investee’s results ▪ Reading available financial statements of investee o For valuation based on fair value: ▪ Obtaining quoted market prices on exchanges when available ▪ Obtaining quoted market prices from broker-dealers for unlisted securities ▪ O_____ing es______s, including those using models like Black-Scholes

Answer 180

Substantive Procedures • Valuation: o For valuation based on cost: ▪ Inspection of documentation ▪ Confirmation o For valuation based on financial results of investee: ▪ Obtaining audit evidence supporting investee’s results ▪ Reading available financial statements of investee o For valuation based on fair value: ▪ Obtaining quoted market prices on exchanges when available ▪ Obtaining quoted market prices from broker-dealers for unlisted securities ▪ Obtaining estimates, including those using models like Black-Scholes

Question 181

Substantive Procedures • Valuation: o For valuation based on cost: ▪ Inspection of documentation ▪ Confirmation o For valuation based on financial results of investee: ▪ Obtaining audit evidence supporting investee’s results ▪ Reading available financial statements of investee o For valuation based on fair value: ▪ Obtaining quoted market prices on exchanges when available ▪ Obtaining quoted market prices from broker-dealers for unlisted securities ▪ Obtaining estimates, including those u__ng mo___s like Black-Scholes

Answer 181

Substantive Procedures • Valuation: o For valuation based on cost: ▪ Inspection of documentation ▪ Confirmation o For valuation based on financial results of investee: ▪ Obtaining audit evidence supporting investee’s results ▪ Reading available financial statements of investee o For valuation based on fair value: ▪ Obtaining quoted market prices on exchanges when available ▪ Obtaining quoted market prices from broker-dealers for unlisted securities ▪ Obtaining estimates, including those using models like Black-Scholes

Question 182

Substantive Procedures • Valuation: o For valuation based on cost: ▪ Inspection of documentation ▪ Confirmation o For valuation based on financial results of investee: ▪ Obtaining audit evidence supporting investee’s results ▪ Reading available financial statements of investee o For valuation based on fair value: ▪ Ob___ing quoted market prices on exchanges when available ▪ Ob___ing quoted market prices from broker-dealers for unlisted securities ▪ Ob___ing estimates, including those using models like Black-Scholes

Answer 182

Substantive Procedures • Valuation: o For valuation based on cost: ▪ Inspection of documentation ▪ Confirmation o For valuation based on financial results of investee: ▪ Obtaining audit evidence supporting investee’s results ▪ Reading available financial statements of investee o For valuation based on fair value: ▪ Obtaining quoted market prices on exchanges when available ▪ Obtaining quoted market prices from broker-dealers for unlisted securities ▪ Obtaining estimates, including those using models like Black-Scholes

Question 183

Substantive Procedures • Valuation: o For valuation based on cost: ▪ Inspection of documentation ▪ Confirmation o For valuation based on financial results of investee: ▪ Obtaining audit evidence supporting investee’s results ▪ Reading available financial statements of investee o For valuation based on fair value: ▪ Obtaining quoted market p_____s on exchanges when available ▪ Obtaining quoted market p_____s from broker-dealers for unlisted securities ▪ Obtaining e_______es, including those using models like Black-Scholes

Answer 183

Substantive Procedures • Valuation: o For valuation based on cost: ▪ Inspection of documentation ▪ Confirmation o For valuation based on financial results of investee: ▪ Obtaining audit evidence supporting investee’s results ▪ Reading available financial statements of investee o For valuation based on fair value: ▪ Obtaining quoted market prices on exchanges when available ▪ Obtaining quoted market prices from broker-dealers for unlisted securities ▪ Obtaining estimates, including those using models like Black-Scholes

Question 184

Substantive Procedures • Valuation: o For valuation based on cost: ▪ Inspection of documentation ▪ Confirmation o For valuation based on financial results of investee: ▪ Obtaining audit evidence supporting investee’s results ▪ Reading available financial statements of investee o For valuation based on fair value: ▪ Obtaining quoted market prices on exchanges when available ▪ Obtaining quoted market prices from broker-dealers for unlisted securities ▪ Obtaining estimates, including those using models like Bl___-Sch___s

Answer 184

Substantive Procedures • Valuation: o For valuation based on cost: ▪ Inspection of documentation ▪ Confirmation o For valuation based on financial results of investee: ▪ Obtaining audit evidence supporting investee’s results ▪ Reading available financial statements of investee o For valuation based on fair value: ▪ Obtaining quoted market prices on exchanges when available ▪ Obtaining quoted market prices from broker-dealers for unlisted securities ▪ Obtaining estimates, including those using models like Black-Scholes

Question 185

What Is the Black Scholes Model? The Black Scholes model, also known as the Black-Scholes-Merton (BSM) model, is a mathematical model for pricing an options contract. In particular, the model estimates the variation over time of financial instruments such as stocks, and using the implied volatility of the underlying asset derives the price of a call option.

Answer 185

What Is the Black Scholes Model? The Black Scholes model, also known as the Black-Scholes-Merton (BSM) model, is a mathematical model for pricing an options contract. In particular, the model estimates the variation over time of financial instruments such as stocks, and using the implied volatility of the underlying asset derives the price of a call option.

Question 186

Key Takeaways ▪ The Black-Scholes Merton (BSM) model is a differential equation used to solve for options prices. ▪ The model won the Nobel prize in economics. ▪ The standard BSM model is only used to price European options and does not take into account that U.S. options could be exercised before the expiration date.

Answer 186

Key Takeaways ▪ The Black-Scholes Merton (BSM) model is a differential equation used to solve for options prices. ▪ The model won the Nobel prize in economics. ▪ The standard BSM model is only used to price European options and does not take into account that U.S. options could be exercised before the expiration date.

Question 187

Black-scholes Model Definition: Black-Scholes is a pricing model used to determine the fair price or theoretical value for a call or a put option based on six variables ``` such as volatility, type of option, underlying stock price, time, strike price, and risk-free rate. ``` The quantum of speculation is more in case of stock market derivatives, and hence proper pricing of options eliminates the opportunity for any arbitrage. There are two important models for option pricing – Binomial Model and Black-Scholes Model. The model is used to determine the price of a European call option, which simply means that the option can only be exercised on the expiration date. Description: Black-Scholes pricing model is largely used by option traders who buy options that are priced under the formula calculated value, and sell options that are priced higher than the Black-Schole calculated value (1). The formula for computing option price is as under (2): Call Option Premium C = SN(d1) - Xe- rt N(d2) Put Option Premium P = Xe–rT N (–d2) – S0 N (-d1) d1 = [Ln (S / X) + (r + s2 / 2) X t] -------------------------------------- s Öt d2 = [Ln (S / X) + (r - s 2 / 2) X t] --------------------------------------- s Öt Here, C = price of a call option P = price of a put option S = price of the underlying asset X = strike price of the option r = rate of interest t = time to expiration s = volatility of the underlying N represents a standard normal distribution with mean = 0 and standard deviation = 1

Answer 187

Black-scholes Model Definition: Black-Scholes is a pricing model used to determine the fair price or theoretical value for a call or a put option based on six variables ``` such as volatility, type of option, underlying stock price, time, strike price, and risk-free rate. ``` The quantum of speculation is more in case of stock market derivatives, and hence proper pricing of options eliminates the opportunity for any arbitrage. There are two important models for option pricing – Binomial Model and Black-Scholes Model. The model is used to determine the price of a European call option, which simply means that the option can only be exercised on the expiration date. Description: Black-Scholes pricing model is largely used by option traders who buy options that are priced under the formula calculated value, and sell options that are priced higher than the Black-Schole calculated value (1). The formula for computing option price is as under (2): Call Option Premium C = SN(d1) - Xe- rt N(d2) Put Option Premium P = Xe–rT N (–d2) – S0 N (-d1) d1 = [Ln (S / X) + (r + s2 / 2) X t] -------------------------------------- s Öt d2 = [Ln (S / X) + (r - s 2 / 2) X t] --------------------------------------- s Öt Here, C = price of a call option P = price of a put option S = price of the underlying asset X = strike price of the option r = rate of interest t = time to expiration s = volatility of the underlying N represents a standard normal distribution with mean = 0 and standard deviation = 1

Question 188

Investing and Financing Cycle Internal Controls Substantive Procedures Substantive procedures in the area of derivatives investments should be designed to test management’s assertions with regard to (PERCV): * Presentation and Disclosure * Existence * Rights and Obligations * Completeness * Valuation • P____________ and D____________ – This will involve - reading disclosures to make certain they are in compliance with GAAP; - determining if securities have been pledged as collateral for indebtedness through inquiries and inspection of documents; and - determining that investments are appropriately classified through inquiries of management. • Existence – This may involve the - inspection of securities on hand; - confirmations with brokers or other third parties either holding securities or who may be counter-parties; - reviewing documents; and, - when appropriate, inspecting documentation of settlement or realization. • Rights and Obligations – This may involve the review of documents and confirmations with counter parties. • Completeness – This may involve - review of minutes of the board of directors or others responsible for governance; - tests of subsequent transactions for evidence of realization or settlement; - confirmations with counter parties, financial institutions, brokers, and others; and - evaluating beginning amounts for disposition of inclusion in ending amounts. • Valuation: o For valuation based on cost: ▪ Inspection of documentation ▪ Confirmation o For valuation based on financial results of investee: ▪ Obtaining audit evidence supporting investee’s results ▪ Reading available financial statements of investee o For valuation based on fair value: ▪ Obtaining quoted market prices on exchanges when available ▪ Obtaining quoted market prices from broker-dealers for unlisted securities ▪ Obtaining estimates, including those using models like Black-Scholes

Answer 188

Investing and Financing Cycle Internal Controls Substantive Procedures Substantive procedures in the area of derivatives investments should be designed to test management’s assertions with regard to (PERCV): * Presentation and Disclosure * Existence * Rights and Obligations * Completeness * Valuation • Presentation and Disclosure – This will involve - reading disclosures to make certain they are in compliance with GAAP; - determining if securities have been pledged as collateral for indebtedness through inquiries and inspection of documents; and - determining that investments are appropriately classified through inquiries of management. • Existence – This may involve the - inspection of securities on hand; - confirmations with brokers or other third parties either holding securities or who may be counter-parties; - reviewing documents; and, - when appropriate, inspecting documentation of settlement or realization. • Rights and Obligations – This may involve the review of documents and confirmations with counter parties. • Completeness – This may involve - review of minutes of the board of directors or others responsible for governance; - tests of subsequent transactions for evidence of realization or settlement; - confirmations with counter parties, financial institutions, brokers, and others; and - evaluating beginning amounts for disposition of inclusion in ending amounts. • Valuation: o For valuation based on cost: ▪ Inspection of documentation ▪ Confirmation o For valuation based on financial results of investee: ▪ Obtaining audit evidence supporting investee’s results ▪ Reading available financial statements of investee o For valuation based on fair value: ▪ Obtaining quoted market prices on exchanges when available ▪ Obtaining quoted market prices from broker-dealers for unlisted securities ▪ Obtaining estimates, including those using models like Black-Scholes

Question 189

Investing and Financing Cycle Internal Controls Substantive Procedures Substantive procedures in the area of derivatives investments should be designed to test management’s assertions with regard to (PERCV): * Presentation and Disclosure * Existence * Rights and Obligations * Completeness * Valuation • Presentation and Disclosure – This will involve - reading disclosures to make certain they are in compliance with GAAP; - determining if securities have been pledged as collateral for indebtedness through inquiries and inspection of documents; and - determining that investments are appropriately classified through inquiries of management. • E__________ – This may involve the - inspection of securities on hand; - confirmations with brokers or other third parties either holding securities or who may be counter-parties; - reviewing documents; and, - when appropriate, inspecting documentation of settlement or realization. • Rights and Obligations – This may involve the review of documents and confirmations with counter parties. • Completeness – This may involve - review of minutes of the board of directors or others responsible for governance; - tests of subsequent transactions for evidence of realization or settlement; - confirmations with counter parties, financial institutions, brokers, and others; and - evaluating beginning amounts for disposition of inclusion in ending amounts. • Valuation: o For valuation based on cost: ▪ Inspection of documentation ▪ Confirmation o For valuation based on financial results of investee: ▪ Obtaining audit evidence supporting investee’s results ▪ Reading available financial statements of investee o For valuation based on fair value: ▪ Obtaining quoted market prices on exchanges when available ▪ Obtaining quoted market prices from broker-dealers for unlisted securities ▪ Obtaining estimates, including those using models like Black-Scholes

Answer 189

Investing and Financing Cycle Internal Controls Substantive Procedures Substantive procedures in the area of derivatives investments should be designed to test management’s assertions with regard to (PERCV): * Presentation and Disclosure * Existence * Rights and Obligations * Completeness * Valuation • Presentation and Disclosure – This will involve - reading disclosures to make certain they are in compliance with GAAP; - determining if securities have been pledged as collateral for indebtedness through inquiries and inspection of documents; and - determining that investments are appropriately classified through inquiries of management. • Existence – This may involve the - inspection of securities on hand; - confirmations with brokers or other third parties either holding securities or who may be counter-parties; - reviewing documents; and, - when appropriate, inspecting documentation of settlement or realization. • Rights and Obligations – This may involve the review of documents and confirmations with counter parties. • Completeness – This may involve - review of minutes of the board of directors or others responsible for governance; - tests of subsequent transactions for evidence of realization or settlement; - confirmations with counter parties, financial institutions, brokers, and others; and - evaluating beginning amounts for disposition of inclusion in ending amounts. • Valuation: o For valuation based on cost: ▪ Inspection of documentation ▪ Confirmation o For valuation based on financial results of investee: ▪ Obtaining audit evidence supporting investee’s results ▪ Reading available financial statements of investee o For valuation based on fair value: ▪ Obtaining quoted market prices on exchanges when available ▪ Obtaining quoted market prices from broker-dealers for unlisted securities ▪ Obtaining estimates, including those using models like Black-Scholes

Question 190

Investing and Financing Cycle Internal Controls Substantive Procedures Substantive procedures in the area of derivatives investments should be designed to test management’s assertions with regard to (PERCV): * Presentation and Disclosure * Existence * Rights and Obligations * Completeness * Valuation • Presentation and Disclosure – This will involve - reading disclosures to make certain they are in compliance with GAAP; - determining if securities have been pledged as collateral for indebtedness through inquiries and inspection of documents; and - determining that investments are appropriately classified through inquiries of management. • Existence – This may involve the - inspection of securities on hand; - confirmations with brokers or other third parties either holding securities or who may be counter-parties; - reviewing documents; and, - when appropriate, inspecting documentation of settlement or realization. • R______ and O___________ – This may involve the review of documents and confirmations with counter parties. • Completeness – This may involve - review of minutes of the board of directors or others responsible for governance; - tests of subsequent transactions for evidence of realization or settlement; - confirmations with counter parties, financial institutions, brokers, and others; and - evaluating beginning amounts for disposition of inclusion in ending amounts. • Valuation: o For valuation based on cost: ▪ Inspection of documentation ▪ Confirmation o For valuation based on financial results of investee: ▪ Obtaining audit evidence supporting investee’s results ▪ Reading available financial statements of investee o For valuation based on fair value: ▪ Obtaining quoted market prices on exchanges when available ▪ Obtaining quoted market prices from broker-dealers for unlisted securities ▪ Obtaining estimates, including those using models like Black-Scholes

Answer 190

Investing and Financing Cycle Internal Controls Substantive Procedures Substantive procedures in the area of derivatives investments should be designed to test management’s assertions with regard to (PERCV): * Presentation and Disclosure * Existence * Rights and Obligations * Completeness * Valuation • Presentation and Disclosure – This will involve - reading disclosures to make certain they are in compliance with GAAP; - determining if securities have been pledged as collateral for indebtedness through inquiries and inspection of documents; and - determining that investments are appropriately classified through inquiries of management. • Existence – This may involve the - inspection of securities on hand; - confirmations with brokers or other third parties either holding securities or who may be counter-parties; - reviewing documents; and, - when appropriate, inspecting documentation of settlement or realization. • Rights and Obligations – This may involve the review of documents and confirmations with counter parties. • Completeness – This may involve - review of minutes of the board of directors or others responsible for governance; - tests of subsequent transactions for evidence of realization or settlement; - confirmations with counter parties, financial institutions, brokers, and others; and - evaluating beginning amounts for disposition of inclusion in ending amounts. • Valuation: o For valuation based on cost: ▪ Inspection of documentation ▪ Confirmation o For valuation based on financial results of investee: ▪ Obtaining audit evidence supporting investee’s results ▪ Reading available financial statements of investee o For valuation based on fair value: ▪ Obtaining quoted market prices on exchanges when available ▪ Obtaining quoted market prices from broker-dealers for unlisted securities ▪ Obtaining estimates, including those using models like Black-Scholes

Question 191

Investing and Financing Cycle Internal Controls Substantive Procedures Substantive procedures in the area of derivatives investments should be designed to test management’s assertions with regard to (PERCV): * Presentation and Disclosure * Existence * Rights and Obligations * Completeness * Valuation • Presentation and Disclosure – This will involve - reading disclosures to make certain they are in compliance with GAAP; - determining if securities have been pledged as collateral for indebtedness through inquiries and inspection of documents; and - determining that investments are appropriately classified through inquiries of management. • Existence – This may involve the - inspection of securities on hand; - confirmations with brokers or other third parties either holding securities or who may be counter-parties; - reviewing documents; and, - when appropriate, inspecting documentation of settlement or realization. • Rights and Obligations – This may involve the review of documents and confirmations with counter parties. • C____________ – This may involve - review of minutes of the board of directors or others responsible for governance; - tests of subsequent transactions for evidence of realization or settlement; - confirmations with counter parties, financial institutions, brokers, and others; and - evaluating beginning amounts for disposition of inclusion in ending amounts. • Valuation: o For valuation based on cost: ▪ Inspection of documentation ▪ Confirmation o For valuation based on financial results of investee: ▪ Obtaining audit evidence supporting investee’s results ▪ Reading available financial statements of investee o For valuation based on fair value: ▪ Obtaining quoted market prices on exchanges when available ▪ Obtaining quoted market prices from broker-dealers for unlisted securities ▪ Obtaining estimates, including those using models like Black-Scholes

Answer 191

Investing and Financing Cycle Internal Controls Substantive Procedures Substantive procedures in the area of derivatives investments should be designed to test management’s assertions with regard to (PERCV): * Presentation and Disclosure * Existence * Rights and Obligations * Completeness * Valuation • Presentation and Disclosure – This will involve - reading disclosures to make certain they are in compliance with GAAP; - determining if securities have been pledged as collateral for indebtedness through inquiries and inspection of documents; and - determining that investments are appropriately classified through inquiries of management. • Existence – This may involve the - inspection of securities on hand; - confirmations with brokers or other third parties either holding securities or who may be counter-parties; - reviewing documents; and, - when appropriate, inspecting documentation of settlement or realization. • Rights and Obligations – This may involve the review of documents and confirmations with counter parties. • Completeness – This may involve - review of minutes of the board of directors or others responsible for governance; - tests of subsequent transactions for evidence of realization or settlement; - confirmations with counter parties, financial institutions, brokers, and others; and - evaluating beginning amounts for disposition of inclusion in ending amounts. • Valuation: o For valuation based on cost: ▪ Inspection of documentation ▪ Confirmation o For valuation based on financial results of investee: ▪ Obtaining audit evidence supporting investee’s results ▪ Reading available financial statements of investee o For valuation based on fair value: ▪ Obtaining quoted market prices on exchanges when available ▪ Obtaining quoted market prices from broker-dealers for unlisted securities ▪ Obtaining estimates, including those using models like Black-Scholes

Question 192

Investing and Financing Cycle Internal Controls Substantive Procedures Substantive procedures in the area of derivatives investments should be designed to test management’s assertions with regard to (PERCV): * Presentation and Disclosure * Existence * Rights and Obligations * Completeness * Valuation • Presentation and Disclosure – This will involve - reading disclosures to make certain they are in compliance with GAAP; - determining if securities have been pledged as collateral for indebtedness through inquiries and inspection of documents; and - determining that investments are appropriately classified through inquiries of management. • Existence – This may involve the - inspection of securities on hand; - confirmations with brokers or other third parties either holding securities or who may be counter-parties; - reviewing documents; and, - when appropriate, inspecting documentation of settlement or realization. • Rights and Obligations – This may involve the review of documents and confirmations with counter parties. • Completeness – This may involve - review of minutes of the board of directors or others responsible for governance; - tests of subsequent transactions for evidence of realization or settlement; - confirmations with counter parties, financial institutions, brokers, and others; and - evaluating beginning amounts for disposition of inclusion in ending amounts. • V__________: o For valuation based on cost: ▪ Inspection of documentation ▪ Confirmation o For valuation based on financial results of investee: ▪ Obtaining audit evidence supporting investee’s results ▪ Reading available financial statements of investee o For valuation based on fair value: ▪ Obtaining quoted market prices on exchanges when available ▪ Obtaining quoted market prices from broker-dealers for unlisted securities ▪ Obtaining estimates, including those using models like Black-Scholes

Answer 192

Investing and Financing Cycle Internal Controls Substantive Procedures Substantive procedures in the area of derivatives investments should be designed to test management’s assertions with regard to (PERCV): * Presentation and Disclosure * Existence * Rights and Obligations * Completeness * Valuation • Presentation and Disclosure – This will involve - reading disclosures to make certain they are in compliance with GAAP; - determining if securities have been pledged as collateral for indebtedness through inquiries and inspection of documents; and - determining that investments are appropriately classified through inquiries of management. • Existence – This may involve the - inspection of securities on hand; - confirmations with brokers or other third parties either holding securities or who may be counter-parties; - reviewing documents; and, - when appropriate, inspecting documentation of settlement or realization. • Rights and Obligations – This may involve the review of documents and confirmations with counter parties. • Completeness – This may involve - review of minutes of the board of directors or others responsible for governance; - tests of subsequent transactions for evidence of realization or settlement; - confirmations with counter parties, financial institutions, brokers, and others; and - evaluating beginning amounts for disposition of inclusion in ending amounts. • Valuation: o For valuation based on cost: ▪ Inspection of documentation ▪ Confirmation o For valuation based on financial results of investee: ▪ Obtaining audit evidence supporting investee’s results ▪ Reading available financial statements of investee o For valuation based on fair value: ▪ Obtaining quoted market prices on exchanges when available ▪ Obtaining quoted market prices from broker-dealers for unlisted securities ▪ Obtaining estimates, including those using models like Black-Scholes

Question 193

Derivatives are required to be reported at: a) Cost b) Fair Value

Answer 193

Derivatives are required to be reported at: Answer: b) Fair Value

Question 194

Since derivatives are required to be reported at fair value, the auditor is required to ?

Answer 194

Since derivatives are required to be reported at fair value, the auditor is required to evaluate whether the fair values of investments in derivatives have been determined appropriately, using an acceptable valuation method.

Question 195

Since derivatives are required to be reported at fair value, the auditor is required to ? _________ whether the fair values of investments in derivatives have been determined ______________, using an acceptable valuation method.

Answer 195

Since derivatives are required to be reported at fair value, the auditor is required to ? evaluate whether the fair values of investments in derivatives have been determined appropriately, using an acceptable valuation method.

Question 196

Since derivatives are required to be reported at fair value, the auditor is required to ? evaluate whether the ____ values of investments in derivatives have been determined appropriately, using an acceptable valuation method.

Answer 196

Since derivatives are required to be reported at fair value, the auditor is required to ? evaluate whether the fair values of investments in derivatives have been determined appropriately, using an acceptable valuation method.

Question 197

Since derivatives are required to be reported at fair value, the auditor is required to ? evaluate whether the fair values of ____________ in derivatives have been determined appropriately, using an acceptable valuation method.

Answer 197

Since derivatives are required to be reported at fair value, the auditor is required to ? evaluate whether the fair values of investments in derivatives have been determined appropriately, using an acceptable valuation method.

Question 198

Since derivatives are required to be reported at fair value, the auditor is required to ? evaluate whether the fair values of investments in ____________ have been determined appropriately, using an acceptable valuation method.

Answer 198

Since derivatives are required to be reported at fair value, the auditor is required to ? evaluate whether the fair values of investments in derivatives have been determined appropriately, using an acceptable valuation method.

Question 199

Since derivatives are required to be reported at fair value, the auditor is required to ? evaluate whether the fair values of investments in derivatives have been __________ appropriately, using an acceptable valuation method.

Answer 199

Since derivatives are required to be reported at fair value, the auditor is required to ? evaluate whether the fair values of investments in derivatives have been determined appropriately, using an acceptable valuation method.

Question 200

Since derivatives are required to be reported at fair value, the auditor is required to ? evaluate whether the fair ________ of investments in derivatives have been determined appropriately, using an acceptable valuation method.

Answer 200

Since derivatives are required to be reported at fair value, the auditor is required to ? evaluate whether the fair values of investments in derivatives have been determined appropriately, using an acceptable valuation method.

Question 201

Since derivatives are required to be reported at fair value, the auditor is required to ? evaluate whether the fair ______ of investments in derivatives have been determined ____________, using an acceptable valuation method.

Answer 201

Since derivatives are required to be reported at fair value, the auditor is required to ? evaluate whether the fair values of investments in derivatives have been determined appropriately, using an acceptable valuation method.

Question 202

Since derivatives are required to be reported at fair value, the auditor is required to ? evaluate whether the fair _____ of ____________ in derivatives have been determined appropriately, using an acceptable valuation method.

Answer 202

Since derivatives are required to be reported at fair value, the auditor is required to ? evaluate whether the fair values of investments in derivatives have been determined appropriately, using an acceptable valuation method.

Question 203

Since derivatives are required to be reported at fair value, the auditor is required to ? __________ whether the fair values of investments in ____________ have been determined appropriately, using an acceptable valuation method.

Answer 203

Since derivatives are required to be reported at fair value, the auditor is required to ? evaluate whether the fair values of investments in derivatives have been determined appropriately, using an acceptable valuation method.

Question 204

Since derivatives are required to be reported at fair value, the auditor is required to ? evaluate whether the ____ ________ of investments in derivatives have been determined appropriately, using an acceptable valuation method.

Answer 204

Since derivatives are required to be reported at fair value, the auditor is required to ? evaluate whether the fair values of investments in derivatives have been determined appropriately, using an acceptable valuation method.

Question 205

Since derivatives are required to be reported at fair value, the auditor is required to ? evaluate whether the fair values of investments in derivatives have been determined appropriately, using an acceptable __________ method.

Answer 205

Since derivatives are required to be reported at fair value, the auditor is required to ? evaluate whether the fair values of investments in derivatives have been determined appropriately, using an acceptable valuation method.

Question 206

Since derivatives are required to be reported at fair value, the auditor is required to ? evaluate whether the fair values of investments in derivatives have been determined appropriately, using an acceptable valuation ________ .

Answer 206

Since derivatives are required to be reported at fair value, the auditor is required to ? evaluate whether the fair values of investments in derivatives have been determined appropriately, using an acceptable valuation method.

Question 207

Since derivatives are required to be reported at fair value, the auditor is required to ? evaluate whether the fair values of investments in derivatives have been determined appropriately, using an _________ valuation method.

Answer 207

Since derivatives are required to be reported at fair value, the auditor is required to ? evaluate whether the fair values of investments in derivatives have been determined appropriately, using an acceptable valuation method.

Question 208

Substantive procedures in the area of investments in Derivatives should be designed to test ?

Answer 208

Substantive procedures in the area of investments in Derivatives should be designed to test ? Answer: Management’s Assertions [ with regard to PERCV ]

Question 209

Substantive procedures in the area of investments in Derivatives should be designed to test ? Management’s ______________

Answer 209

Substantive procedures in the area of investments in Derivatives should be designed to test ? Answer: Management’s Assertions [ with regard to PERCV ]

Question 210

Substantive procedures in the area of investments in Derivatives should be designed to test ? __________________________ [ with regard to PERCV ]

Answer 210

Substantive procedures in the area of investments in Derivatives should be designed to test ? Answer: Management’s Assertions [ with regard to PERCV ]

Question 211

" For valuation based on cost: ▪ Inspection of documentation ▪ Confirmation " Which PERCV the paragraph above referred to? Substantive procedures in the area of investments in Derivatives should be designed to test management’s assertions with regard to (PERCV): * Presentation and Disclosure * Existence * Rights and Obligations * Completeness * Valuation

Answer 211

Answer: Valuation o For valuation based on cost: ▪ Inspection of documentation ▪ Confirmation ------------- • Valuation: o For valuation based on cost: ▪ Inspection of documentation ▪ Confirmation o For valuation based on financial results of investee: ▪ Obtaining audit evidence supporting investee’s results ▪ Reading available financial statements of investee o For valuation based on fair value: ▪ Obtaining quoted market prices on exchanges when available ▪ Obtaining quoted market prices from broker-dealers for unlisted securities ▪ Obtaining estimates, including those using models like Black-Scholes

Question 212

" For valuation based on financial results of investee: ▪ Obtaining audit evidence supporting investee’s results ▪ Reading available financial statements of investee " Which PERCV the paragraph above referred to? Substantive procedures in the area of investments in Derivatives should be designed to test management’s assertions with regard to (PERCV): * Presentation and Disclosure * Existence * Rights and Obligations * Completeness * Valuation

Answer 212

Answer: Valuation: o For valuation based on financial results of investee: ▪ Obtaining audit evidence supporting investee’s results ▪ Reading available financial statements of investee ------------- • Valuation: o For valuation based on cost: ▪ Inspection of documentation ▪ Confirmation o For valuation based on financial results of investee: ▪ Obtaining audit evidence supporting investee’s results ▪ Reading available financial statements of investee o For valuation based on fair value: ▪ Obtaining quoted market prices on exchanges when available ▪ Obtaining quoted market prices from broker-dealers for unlisted securities ▪ Obtaining estimates, including those using models like Black-Scholes

Question 213

" For valuation based on fair value: ▪ Obtaining quoted market prices on exchanges when available ▪ Obtaining quoted market prices from broker-dealers for unlisted securities ▪ Obtaining estimates, including those using models like Black-Scholes" Which PERCV the paragraph above referred to? Substantive procedures in the area of investments in Derivatives should be designed to test management’s assertions with regard to (PERCV): * Presentation and Disclosure * Existence * Rights and Obligations * Completeness * Valuation

Answer 213

Answer: Valuation o For valuation based on fair value: ▪ Obtaining quoted market prices on exchanges when available ▪ Obtaining quoted market prices from broker-dealers for unlisted securities ▪ Obtaining estimates, including those using models like Black-Scholes ------------- • Valuation: o For valuation based on cost: ▪ Inspection of documentation ▪ Confirmation o For valuation based on financial results of investee: ▪ Obtaining audit evidence supporting investee’s results ▪ Reading available financial statements of investee o For valuation based on fair value: ▪ Obtaining quoted market prices on exchanges when available ▪ Obtaining quoted market prices from broker-dealers for unlisted securities ▪ Obtaining estimates, including those using models like Black-Scholes

Question 214

" Valuation based on 1) cost 2) financial results of investee 3) fair value " Which PERCV the paragraph above referred to? Substantive procedures in the area of investments in Derivatives should be designed to test management’s assertions with regard to (PERCV): * Presentation and Disclosure * Existence * Rights and Obligations * Completeness * Valuation

Answer 214

Answer: Valuation o For valuation based on cost: o For valuation based on financial results of investee: o For valuation based on fair value: ------------- • Valuation: o For valuation based on cost: ▪ Inspection of documentation ▪ Confirmation o For valuation based on financial results of investee: ▪ Obtaining audit evidence supporting investee’s results ▪ Reading available financial statements of investee o For valuation based on fair value: ▪ Obtaining quoted market prices on exchanges when available ▪ Obtaining quoted market prices from broker-dealers for unlisted securities ▪ Obtaining estimates, including those using models like Black-Scholes

Question 215

" ▪ Obtaining quoted market prices on exchanges when available ▪ Obtaining quoted market prices from broker-dealers for unlisted securities ▪ Obtaining estimates, including those using models like Black-Scholes " Which PERCV the paragraph above referred to? Substantive procedures in the area of investments in Derivatives should be designed to test management’s assertions with regard to (PERCV): * Presentation and Disclosure * Existence * Rights and Obligations * Completeness * Valuation

Answer 215

Answer: Valuation o For valuation based on fair value: ▪ Obtaining quoted market prices on exchanges when available ▪ Obtaining quoted market prices from broker-dealers for unlisted securities ▪ Obtaining estimates, including those using models like Black-Scholes ------------- • Valuation: o For valuation based on cost: ▪ Inspection of documentation ▪ Confirmation o For valuation based on financial results of investee: ▪ Obtaining audit evidence supporting investee’s results ▪ Reading available financial statements of investee o For valuation based on fair value: ▪ Obtaining quoted market prices on exchanges when available ▪ Obtaining quoted market prices from broker-dealers for unlisted securities ▪ Obtaining estimates, including those using models like Black-Scholes

Question 216

" ▪ Inspection of documentation ▪ Confirmation " Which PERCV the paragraph above referred to? Substantive procedures in the area of investments in Derivatives should be designed to test management’s assertions with regard to (PERCV): * Presentation and Disclosure * Existence * Rights and Obligations * Completeness * Valuation

Answer 216

Answer: Valuation o For valuation based on cost: ▪ Inspection of documentation ▪ Confirmation ------------- • Valuation: o For valuation based on cost: ▪ Inspection of documentation ▪ Confirmation o For valuation based on financial results of investee: ▪ Obtaining audit evidence supporting investee’s results ▪ Reading available financial statements of investee o For valuation based on fair value: ▪ Obtaining quoted market prices on exchanges when available ▪ Obtaining quoted market prices from broker-dealers for unlisted securities ▪ Obtaining estimates, including those using models like Black-Scholes

Question 217

" ▪ Obtaining audit evidence supporting investee’s results ▪ Reading available financial statements of investee " Which PERCV the paragraph above referred to? Substantive procedures in the area of investments in Derivatives should be designed to test management’s assertions with regard to (PERCV): * Presentation and Disclosure * Existence * Rights and Obligations * Completeness * Valuation

Answer 217

Answer: Valuation o For valuation based on financial results of investee: ▪ Obtaining audit evidence supporting investee’s results ▪ Reading available financial statements of investee ------------- • Valuation: o For valuation based on cost: ▪ Inspection of documentation ▪ Confirmation o For valuation based on financial results of investee: ▪ Obtaining audit evidence supporting investee’s results ▪ Reading available financial statements of investee o For valuation based on fair value: ▪ Obtaining quoted market prices on exchanges when available ▪ Obtaining quoted market prices from broker-dealers for unlisted securities ▪ Obtaining estimates, including those using models like Black-Scholes

Question 218

" This may involve - review of minutes of the board of directors or others responsible for governance; " Which PERCV the paragraph above referred to? Substantive procedures in the area of investments in Derivatives should be designed to test management’s assertions with regard to (PERCV): * Presentation and Disclosure * Existence * Rights and Obligations * Completeness * Valuation

Answer 218

• Completeness – This may involve - review of minutes of the board of directors or others responsible for governance; - tests of subsequent transactions for evidence of realization or settlement; - confirmations with counter parties, financial institutions, brokers, and others; and - evaluating beginning amounts for disposition of inclusion in ending amounts.

Question 219

" This may involve - tests of subsequent transactions for evidence of realization or settlement; " Which PERCV the paragraph above referred to? Substantive procedures in the area of investments in Derivatives should be designed to test management’s assertions with regard to (PERCV): * Presentation and Disclosure * Existence * Rights and Obligations * Completeness * Valuation

Answer 219

• Completeness – This may involve - review of minutes of the board of directors or others responsible for governance; - tests of subsequent transactions for evidence of realization or settlement; - confirmations with counter parties, financial institutions, brokers, and others; and - evaluating beginning amounts for disposition of inclusion in ending amounts.

Question 220

" This may involve - confirmations with counter parties, financial institutions, brokers, and others; " Which PERCV the paragraph above referred to? Substantive procedures in the area of investments in Derivatives should be designed to test management’s assertions with regard to (PERCV): * Presentation and Disclosure * Existence * Rights and Obligations * Completeness * Valuation

Answer 220

• Completeness – This may involve - review of minutes of the board of directors or others responsible for governance; - tests of subsequent transactions for evidence of realization or settlement; - confirmations with counter parties, financial institutions, brokers, and others; and - evaluating beginning amounts for disposition of inclusion in ending amounts.

Question 221

" This may involve - evaluating beginning amounts for disposition of inclusion in ending amounts. " Which PERCV the paragraph above referred to? Substantive procedures in the area of investments in Derivatives should be designed to test management’s assertions with regard to (PERCV): * Presentation and Disclosure * Existence * Rights and Obligations * Completeness * Valuation

Answer 221

• Completeness – This may involve - review of minutes of the board of directors or others responsible for governance; - tests of subsequent transactions for evidence of realization or settlement; - confirmations with counter parties, financial institutions, brokers, and others; and - evaluating beginning amounts for disposition of inclusion in ending amounts.

Question 222

" This may involve - review of minutes of the board of directors or others responsible for governance; - tests of subsequent transactions for evidence of realization or settlement; - confirmations with counter parties, financial institutions, brokers, and others; and - evaluating beginning amounts for disposition of inclusion in ending amounts. " Which PERCV the paragraph above referred to? Substantive procedures in the area of investments in Derivatives should be designed to test management’s assertions with regard to (PERCV): * Presentation and Disclosure * Existence * Rights and Obligations * Completeness * Valuation

Answer 222

• Completeness – This may involve - review of minutes of the board of directors or others responsible for governance; - tests of subsequent transactions for evidence of realization or settlement; - confirmations with counter parties, financial institutions, brokers, and others; and - evaluating beginning amounts for disposition of inclusion in ending amounts.

Question 223

" – This may involve the review of documents and confirmations with counter parties." Which PERCV the paragraph above referred to? Substantive procedures in the area of investments in Derivatives should be designed to test management’s assertions with regard to (PERCV): * Presentation and Disclosure * Existence * Rights and Obligations * Completeness * Valuation

Answer 223

• Rights and Obligations – This may involve the review of documents and confirmations with counter parties.

Question 224

" This may involve the - inspection of securities on hand; " Which PERCV the paragraph above referred to? Substantive procedures in the area of investments in Derivatives should be designed to test management’s assertions with regard to (PERCV): * Presentation and Disclosure * Existence * Rights and Obligations * Completeness * Valuation

Answer 224

• Existence – This may involve the - inspection of securities on hand; - confirmations with brokers or other third parties either holding securities or who may be counter-parties; - reviewing documents; and, - when appropriate, inspecting documentation of settlement or realization.

Question 225

" This may involve the - confirmations with brokers or other third parties either holding securities or who may be counter-parties " Which PERCV the paragraph above referred to? Substantive procedures in the area of investments in Derivatives should be designed to test management’s assertions with regard to (PERCV): * Presentation and Disclosure * Existence * Rights and Obligations * Completeness * Valuation

Answer 225

• Existence – This may involve the - inspection of securities on hand; - confirmations with brokers or other third parties either holding securities or who may be counter-parties; - reviewing documents; and, - when appropriate, inspecting documentation of settlement or realization.

Question 226

" This may involve the - reviewing documents " Which PERCV the paragraph above referred to? Substantive procedures in the area of investments in Derivatives should be designed to test management’s assertions with regard to (PERCV): * Presentation and Disclosure * Existence * Rights and Obligations * Completeness * Valuation

Answer 226

• Existence – This may involve the - inspection of securities on hand; - confirmations with brokers or other third parties either holding securities or who may be counter-parties; - reviewing documents; and, - when appropriate, inspecting documentation of settlement or realization.

Question 227

" This may involve the - when appropriate, inspecting documentation of settlement or realization. " Which PERCV the paragraph above referred to? Substantive procedures in the area of investments in Derivatives should be designed to test management’s assertions with regard to (PERCV): * Presentation and Disclosure * Existence * Rights and Obligations * Completeness * Valuation

Answer 227

• Existence – This may involve the - inspection of securities on hand; - confirmations with brokers or other third parties either holding securities or who may be counter-parties; - reviewing documents; and, - when appropriate, inspecting documentation of settlement or realization.

Question 228

" This may involve the - inspection of securities on hand; - confirmations with brokers or other third parties either holding securities or who may be counter-parties; - reviewing documents; and, - when appropriate, inspecting documentation of settlement or realization. " Which PERCV the paragraph above referred to? Substantive procedures in the area of investments in Derivatives should be designed to test management’s assertions with regard to (PERCV): * Presentation and Disclosure * Existence * Rights and Obligations * Completeness * Valuation

Answer 228

• Existence – This may involve the - inspection of securities on hand; - confirmations with brokers or other third parties either holding securities or who may be counter-parties; - reviewing documents; and, - when appropriate, inspecting documentation of settlement or realization.

Question 229

" This will involve - reading disclosures to make certain they are in compliance with GAAP " Which PERCV the paragraph above referred to? Substantive procedures in the area of investments in Derivatives should be designed to test management’s assertions with regard to (PERCV): * Presentation and Disclosure * Existence * Rights and Obligations * Completeness * Valuation

Answer 229

• Presentation and Disclosure – This will involve - reading disclosures to make certain they are in compliance with GAAP; - determining if securities have been pledged as collateral for indebtedness through inquiries and inspection of documents; and - determining that investments are appropriately classified through inquiries of management.

Question 230

" This will involve - determining if securities have been pledged as collateral for indebtedness through inquiries and inspection of documents; " Which PERCV the paragraph above referred to? Substantive procedures in the area of investments in Derivatives should be designed to test management’s assertions with regard to (PERCV): * Presentation and Disclosure * Existence * Rights and Obligations * Completeness * Valuation

Answer 230

• Presentation and Disclosure – This will involve - reading disclosures to make certain they are in compliance with GAAP; - determining if securities have been pledged as collateral for indebtedness through inquiries and inspection of documents; and - determining that investments are appropriately classified through inquiries of management.

Question 231

" This will involve - determining that investments are appropriately classified through inquiries of management " Which PERCV the paragraph above referred to? Substantive procedures in the area of investments in Derivatives should be designed to test management’s assertions with regard to (PERCV): * Presentation and Disclosure * Existence * Rights and Obligations * Completeness * Valuation

Answer 231

• Presentation and Disclosure – This will involve - reading disclosures to make certain they are in compliance with GAAP; - determining if securities have been pledged as collateral for indebtedness through inquiries and inspection of documents; and - determining that investments are appropriately classified through inquiries of management.

Question 232

" This will involve - reading disclosures to make certain they are in compliance with GAAP; - determining if securities have been pledged as collateral for indebtedness through inquiries and inspection of documents; and - determining that investments are appropriately classified through inquiries of management." Which PERCV the paragraph above referred to? Substantive procedures in the area of investments in Derivatives should be designed to test management’s assertions with regard to (PERCV): * Presentation and Disclosure * Existence * Rights and Obligations * Completeness * Valuation

Answer 232

• Presentation and Disclosure – This will involve - reading disclosures to make certain they are in compliance with GAAP; - determining if securities have been pledged as collateral for indebtedness through inquiries and inspection of documents; and - determining that investments are appropriately classified through inquiries of management.

Question 233

``` PERCV: • Presentation and Disclosure • Existence • Rights and Obligations • Completeness • Valuation ``` • Presentation and Disclosure – This will involve - _______ disclosures to make certain they are in compliance with GAAP; - ____________ if securities have been pledged as collateral for indebtedness through inquiries and inspection of documents; and - _________ that investments are appropriately classified through inquiries of management.

Answer 233

``` PERCV: • Presentation and Disclosure • Existence • Rights and Obligations • Completeness • Valuation ``` • Presentation and Disclosure – This will involve - reading disclosures to make certain they are in compliance with GAAP; - determining if securities have been pledged as collateral for indebtedness through inquiries and inspection of documents; and - determining that investments are appropriately classified through inquiries of management.

Question 234

• Presentation and Disclosure – This will involve - reading ____________ to make certain they are in compliance with GAAP;

Answer 234

• Presentation and Disclosure – This will involve - reading disclosures to make certain they are in compliance with GAAP;

Question 235

• Presentation and Disclosure – This will involve - reading disclosures to make certain they are in compliance with _____;

Answer 235

• Presentation and Disclosure – This will involve - reading disclosures to make certain they are in compliance with GAAP;

Question 236

• Presentation and Disclosure – This will involve - reading disclosures to make certain they are in compliance with GAAP; - determining if __________ have been pledged as collateral for indebtedness through inquiries and inspection of documents;

Answer 236

• Presentation and Disclosure – This will involve - reading disclosures to make certain they are in compliance with GAAP; - determining if securities have been pledged as collateral for indebtedness through inquiries and inspection of documents;

Question 237

• Presentation and Disclosure – This will involve - reading disclosures to make certain they are in compliance with GAAP; - determining if securities have been _________ as collateral for indebtedness through inquiries and inspection of documents;

Answer 237

• Presentation and Disclosure – This will involve - reading disclosures to make certain they are in compliance with GAAP; - determining if securities have been pledged as collateral for indebtedness through inquiries and inspection of documents;

Question 238

• Presentation and Disclosure – This will involve - determining if securities have been pledged as __________ for indebtedness through inquiries and inspection of documents;

Answer 238

• Presentation and Disclosure – This will involve - determining if securities have been pledged as collateral for indebtedness through inquiries and inspection of documents;

Question 239

• Presentation and Disclosure – This will involve - determining if securities have been pledged as collateral for _____________ through inquiries and inspection of documents;

Answer 239

• Presentation and Disclosure – This will involve - determining if securities have been pledged as collateral for indebtedness through inquiries and inspection of documents;

Question 240

• Presentation and Disclosure – This will involve - determining if securities have been pledged as collateral for indebtedness through __________ and inspection of documents;

Answer 240

• Presentation and Disclosure – This will involve - determining if securities have been pledged as collateral for indebtedness through inquiries and inspection of documents;

Question 241

• Presentation and Disclosure – This will involve - determining if securities have been pledged as collateral for indebtedness through inquiries and ___________ of documents;

Answer 241

• Presentation and Disclosure – This will involve - determining if securities have been pledged as collateral for indebtedness through inquiries and inspection of documents;

Question 242

• Presentation and Disclosure – This will involve - determining if securities have been pledged as collateral for indebtedness through inquiries and inspection of documents; - determining that ___________ are appropriately classified through inquiries of management.

Answer 242

• Presentation and Disclosure – This will involve - determining if securities have been pledged as collateral for indebtedness through inquiries and inspection of documents; - determining that investments are appropriately classified through inquiries of management.

Question 243

• Presentation and Disclosure – This will involve - determining if securities have been pledged as collateral for indebtedness through inquiries and inspection of documents; - determining that investments are ____________ classified through inquiries of management.

Answer 243

• Presentation and Disclosure – This will involve - determining if securities have been pledged as collateral for indebtedness through inquiries and inspection of documents; - determining that investments are appropriately classified through inquiries of management.

Question 244

• Presentation and Disclosure – This will involve - determining that investments are appropriately _________ through inquiries of management.

Answer 244

• Presentation and Disclosure – This will involve - determining that investments are appropriately classified through inquiries of management.

Question 245

• Presentation and Disclosure – This will involve - determining that investments are appropriately classified through __________ of management.

Answer 245

• Presentation and Disclosure – This will involve - determining that investments are appropriately classified through inquiries of management.

Question 246

• Presentation and Disclosure – This will involve - determining that investments are appropriately classified through inquiries of ____________.

Answer 246

• Presentation and Disclosure – This will involve - determining that investments are appropriately classified through inquiries of management.

Question 247

• Presentation and Disclosure – This will involve - reading ____________ to make certain they are in compliance with GAAP; - determining if _________ have been pledged as collateral for indebtedness through inquiries and inspection of documents; and - determining that investments are appropriately classified through inquiries of management.

Answer 247

• Presentation and Disclosure – This will involve - reading disclosures to make certain they are in compliance with GAAP; - determining if securities have been pledged as collateral for indebtedness through inquiries and inspection of documents; and - determining that investments are appropriately classified through inquiries of management.

Question 248

• Presentation and Disclosure – This will involve - reading disclosures to make certain they are in compliance with GAAP; - determining if securities have been pledged as collateral for indebtedness through inquiries and inspection of documents; and - determining that ___________ are appropriately _________ through inquiries of management.

Answer 248

• Presentation and Disclosure – This will involve - reading disclosures to make certain they are in compliance with GAAP; - determining if securities have been pledged as collateral for indebtedness through inquiries and inspection of documents; and - determining that investments are appropriately classified through inquiries of management.

Question 249

• Presentation and Disclosure – This will involve - reading disclosures to make certain they are in compliance with GAAP; - determining if securities have been _________ as _________ for indebtedness through inquiries and inspection of documents; and - determining that investments are appropriately classified through inquiries of management.

Answer 249

• Presentation and Disclosure – This will involve - reading disclosures to make certain they are in compliance with GAAP; - determining if securities have been pledged as collateral for indebtedness through inquiries and inspection of documents; and - determining that investments are appropriately classified through inquiries of management.

Question 250

• Presentation and Disclosure – This will involve - reading disclosures to make certain they are in compliance with GAAP; - determining if securities have been pledged as collateral for ____________ through inquiries and inspection of ___________; and - determining that investments are appropriately classified through inquiries of management.

Answer 250

• Presentation and Disclosure – This will involve - reading disclosures to make certain they are in compliance with GAAP; - determining if securities have been pledged as collateral for indebtedness through inquiries and inspection of documents; and - determining that investments are appropriately classified through inquiries of management.

Question 251

• ____________ and Disclosure – This will involve - reading disclosures to make certain they are in compliance with GAAP; - determining if securities have been pledged as collateral for indebtedness through inquiries and inspection of documents; and - determining that investments are appropriately classified through inquiries of management.

Answer 251

• Presentation and Disclosure – This will involve - reading disclosures to make certain they are in compliance with GAAP; - determining if securities have been pledged as collateral for indebtedness through inquiries and inspection of documents; and - determining that investments are appropriately classified through inquiries of management.

Question 252

• Presentation and ____________ – This will involve - reading disclosures to make certain they are in compliance with GAAP; - determining if securities have been pledged as collateral for indebtedness through inquiries and inspection of documents; and - determining that investments are appropriately classified through inquiries of management.

Answer 252

• Presentation and Disclosure – This will involve - reading disclosures to make certain they are in compliance with GAAP; - determining if securities have been pledged as collateral for indebtedness through inquiries and inspection of documents; and - determining that investments are appropriately classified through inquiries of management.

Question 253

PERCV: * Presentation and Disclosure * Existence * Rights and Obligations * Completeness * Valuation • Existence – This may involve the - inspection of securities on hand; - confirmations with brokers or other third parties either holding securities or who may be counter-parties; - reviewing documents; and, - when appropriate, inspecting documentation of settlement or realization.

Answer 253

PERCV: * Presentation and Disclosure * Existence * Rights and Obligations * Completeness * Valuation • Existence – This may involve the - inspection of securities on hand; - confirmations with brokers or other third parties either holding securities or who may be counter-parties; - reviewing documents; and, - when appropriate, inspecting documentation of settlement or realization.

Question 254

• Existence – This may involve the - inspection of _________ on hand;

Answer 254

• Existence – This may involve the - inspection of securities on hand;

Question 255

• Existence – This may involve the - inspection of securities on hand; - __________ with brokers or other third parties either holding securities or who may be counter-parties;

Answer 255

• Existence – This may involve the - inspection of securities on hand; - confirmations with brokers or other third parties either holding securities or who may be counter-parties;

Question 256

• Existence – This may involve the - confirmations with _______ or other third parties either holding securities or who may be counter-parties;

Answer 256

• Existence – This may involve the - confirmations with brokers or other third parties either holding securities or who may be counter-parties;

Question 257

• Existence – This may involve the - confirmations with brokers or other third parties either holding _________ or who may be counter-parties;

Answer 257

• Existence – This may involve the - confirmations with brokers or other third parties either holding securities or who may be counter-parties;

Question 258

• Existence – This may involve the - confirmations with brokers or other ______ parties either holding securities or who may be counter-parties;

Answer 258

• Existence – This may involve the - confirmations with brokers or other third parties either holding securities or who may be counter-parties;

Question 259

• Existence – This may involve the - confirmations with brokers or other third parties either holding securities or who may be ________ -parties;

Answer 259

• Existence – This may involve the - confirmations with brokers or other third parties either holding securities or who may be counter-parties;

Question 260

• Existence – This may involve the - confirmations with brokers or other third parties either holding securities or who may be counter-parties; - _________ documents;

Answer 260

• Existence – This may involve the - confirmations with brokers or other third parties either holding securities or who may be counter-parties; - reviewing documents;

Question 261

• Existence – This may involve the - confirmations with brokers or other third parties either holding securities or who may be counter-parties; - reviewing _________;

Answer 261

• Existence – This may involve the - confirmations with brokers or other third parties either holding securities or who may be counter-parties; - reviewing documents;

Question 262

• Existence – This may involve the - reviewing documents; - when appropriate, _________ documentation of settlement or realization.

Answer 262

• Existence – This may involve the - reviewing documents; - when appropriate, inspecting documentation of settlement or realization.

Question 263

• Existence – This may involve the - reviewing documents; - when appropriate, inspecting _____________ of settlement or realization.

Answer 263

• Existence – This may involve the - reviewing documents; - when appropriate, inspecting documentation of settlement or realization.

Question 264

• Existence – This may involve the - reviewing documents; - when appropriate, inspecting documentation of ___________ or realization.

Answer 264

• Existence – This may involve the - reviewing documents; - when appropriate, inspecting documentation of settlement or realization.

Question 265

• Existence – This may involve the - when appropriate, inspecting documentation of settlement or __________.

Answer 265

• Existence – This may involve the - when appropriate, inspecting documentation of settlement or realization.

Question 266

• Existence – This may involve the - __________ of securities on hand; - __________ with brokers or other third parties either holding securities or who may be counter-parties; - reviewing documents; and, - when appropriate, inspecting documentation of settlement or realization.

Answer 266

• Existence – This may involve the - inspection of securities on hand; - confirmations with brokers or other third parties either holding securities or who may be counter-parties; - reviewing documents; and, - when appropriate, inspecting documentation of settlement or realization.

Question 267

• Existence – This may involve the - inspection of securities on hand; - confirmations with brokers or other third parties either holding securities or who may be counter-parties; - ________ documents; and, - when appropriate, _______ documentation of settlement or realization.

Answer 267

• Existence – This may involve the - inspection of securities on hand; - confirmations with brokers or other third parties either holding securities or who may be counter-parties; - reviewing documents; and, - when appropriate, inspecting documentation of settlement or realization.

Question 268

• Existence – This may involve the - inspection of __________ on hand; - confirmations with brokers or other third parties either holding ____________ or who may be counter-parties; - reviewing documents; and, - when appropriate, inspecting documentation of settlement or realization.

Answer 268

• Existence – This may involve the - inspection of securities on hand; - confirmations with brokers or other third parties either holding securities or who may be counter-parties; - reviewing documents; and, - when appropriate, inspecting documentation of settlement or realization.

Question 269

• Existence – This may involve the - inspection of securities on hand; - confirmations with brokers or other third parties either holding securities or who may be counter-parties; - reviewing __________ ; and, - when appropriate, inspecting ____________ of settlement or realization.

Answer 269

• Existence – This may involve the - inspection of securities on hand; - confirmations with brokers or other third parties either holding securities or who may be counter-parties; - reviewing documents; and, - when appropriate, inspecting documentation of settlement or realization.

Question 270

• Existence – This may involve the - inspection of securities on hand; - confirmations with brokers or other third parties either holding securities or who may be counter-parties; - reviewing documents; and, - when appropriate, inspecting documentation of ___________ or ___________.

Answer 270

• Existence – This may involve the - inspection of securities on hand; - confirmations with brokers or other third parties either holding securities or who may be counter-parties; - reviewing documents; and, - when appropriate, inspecting documentation of settlement or realization.

Question 271

• Existence – This may involve the - inspection of securities on hand; - confirmations with brokers or other third _______ either holding securities or who may be counter-_________ ; - reviewing documents; and, - when appropriate, inspecting documentation of settlement or realization.

Answer 271

• Existence – This may involve the - inspection of securities on hand; - confirmations with brokers or other third parties either holding securities or who may be counter-parties; - reviewing documents; and, - when appropriate, inspecting documentation of settlement or realization.

Question 272

``` PERCV: • Presentation and Disclosure • Existence • Rights and Obligations • Completeness • Valuation ``` • Rights and Obligations – This may involve the _______ of documents and confirmations with counter parties.

Answer 272

``` PERCV: • Presentation and Disclosure • Existence • Rights and Obligations • Completeness • Valuation ``` • Rights and Obligations – This may involve the review of documents and confirmations with counter parties.

Question 273

• Rights and Obligations – This may involve the review of documents and confirmations with counter parties.

Answer 273

• Rights and Obligations – This may involve the review of documents and confirmations with counter parties.

Question 274

• Rights and Obligations – This may involve the review of ____________ and confirmations with counter parties.

Answer 274

• Rights and Obligations – This may involve the review of documents and confirmations with counter parties.

Question 275

• Rights and Obligations – This may involve the review of documents and _____________ with counter parties.

Answer 275

• Rights and Obligations – This may involve the review of documents and confirmations with counter parties.

Question 276

• Rights and Obligations – This may involve the review of documents and confirmations with ________ parties.

Answer 276

• Rights and Obligations – This may involve the review of documents and confirmations with counter parties.

Question 277

• Rights and Obligations – This may involve the review of documents and confirmations with counter ________.

Answer 277

• Rights and Obligations – This may involve the review of documents and confirmations with counter parties.

Question 278

• Rights and Obligations – This may involve the review of documents and confirmations with counter ________.

Answer 278

• Rights and Obligations – This may involve the review of documents and confirmations with counter parties.

Question 279

• _______________________ – This may involve the review of documents and confirmations with counter parties.

Answer 279

• Rights and Obligations – This may involve the review of documents and confirmations with counter parties.

Question 280

``` PERCV: • Presentation and Disclosure • Existence • Rights and Obligations • Completeness • Valuation ``` • Completeness – This may involve - _______ of minutes of the board of directors or others responsible for governance; - tests of subsequent transactions for evidence of realization or settlement; - confirmations with counter parties, financial institutions, brokers, and others; and - evaluating beginning amounts for disposition of inclusion in ending amounts.

Answer 280

``` PERCV: • Presentation and Disclosure • Existence • Rights and Obligations • Completeness • Valuation ``` • Completeness – This may involve - review of minutes of the board of directors or others responsible for governance; - tests of subsequent transactions for evidence of realization or settlement; - confirmations with counter parties, financial institutions, brokers, and others; and - evaluating beginning amounts for disposition of inclusion in ending amounts.

Question 281

• Completeness – This may involve - review of _________ of the board of directors or others responsible for governance;

Answer 281

• Completeness – This may involve - review of minutes of the board of directors or others responsible for governance;

Question 282

• Completeness – This may involve - review of minutes of the board of _________ or others responsible for governance;

Answer 282

• Completeness – This may involve - review of minutes of the board of directors or others responsible for governance;

Question 283

• Completeness – This may involve - review of minutes of the board of directors or others ____________ for governance;

Answer 283

• Completeness – This may involve - review of minutes of the board of directors or others responsible for governance;

Question 284

• Completeness – This may involve - review of minutes of the board of directors or others responsible for ______________;

Answer 284

• Completeness – This may involve - review of minutes of the board of directors or others responsible for governance;

Question 285

• _______________ – This may involve - review of minutes of the board of directors or others responsible for governance;

Answer 285

• Completeness – This may involve - review of minutes of the board of directors or others responsible for governance;

Question 286

``` PERCV: • Presentation and Disclosure • Existence • Rights and Obligations • Completeness • Valuation ``` • Valuation: o For valuation based on ____: ▪ Inspection of documentation ▪ Confirmation o For valuation based on financial results of investee: ▪ Obtaining audit evidence supporting investee’s results ▪ Reading available financial statements of investee o For valuation based on fair value: ▪ Obtaining quoted market prices on exchanges when available ▪ Obtaining quoted market prices from broker-dealers for unlisted securities ▪ Obtaining estimates, including those using models like Black-Scholes

Answer 286

``` PERCV: • Presentation and Disclosure • Existence • Rights and Obligations • Completeness • Valuation ``` • Valuation: o For valuation based on cost: ▪ Inspection of documentation ▪ Confirmation o For valuation based on financial results of investee: ▪ Obtaining audit evidence supporting investee’s results ▪ Reading available financial statements of investee o For valuation based on fair value: ▪ Obtaining quoted market prices on exchanges when available ▪ Obtaining quoted market prices from broker-dealers for unlisted securities ▪ Obtaining estimates, including those using models like Black-Scholes

Question 287

• Valuation: o For valuation based on cost: ▪ ____________ of documentation ▪ Confirmation

Answer 287

• Valuation: o For valuation based on cost: ▪ Inspection of documentation ▪ Confirmation

Question 288

• Valuation: o For valuation based on cost: ▪ Inspection of ______________ ▪ Confirmation

Answer 288

• Valuation: o For valuation based on cost: ▪ Inspection of documentation ▪ Confirmation

Question 289

• Valuation: o For valuation based on cost: ▪ Inspection of documentation ▪ ____________

Answer 289

• Valuation: o For valuation based on cost: ▪ Inspection of documentation ▪ Confirmation

Question 290

• Valuation: o For valuation based on cost: ▪ Inspection of documentation ▪ Confirmation o For valuation based on _________ results of investee: ▪ Obtaining audit evidence supporting investee’s results ▪ Reading available financial statements of investee

Answer 290

• Valuation: o For valuation based on cost: ▪ Inspection of documentation ▪ Confirmation o For valuation based on financial results of investee: ▪ Obtaining audit evidence supporting investee’s results ▪ Reading available financial statements of investee

Question 291

• Valuation: o For valuation based on cost: ▪ Inspection of documentation ▪ Confirmation o For valuation based on financial results of ___________: ▪ Obtaining audit evidence supporting investee’s results ▪ Reading available financial statements of investee

Answer 291

• Valuation: o For valuation based on cost: ▪ Inspection of documentation ▪ Confirmation o For valuation based on financial results of investee: ▪ Obtaining audit evidence supporting investee’s results ▪ Reading available financial statements of investee

Question 292

• Valuation: o For valuation based on financial ______ of investee: ▪ Obtaining audit evidence supporting investee’s results ▪ Reading available financial statements of investee

Answer 292

• Valuation: o For valuation based on financial results of investee: ▪ Obtaining audit evidence supporting investee’s results ▪ Reading available financial statements of investee

Question 293

• Valuation: o For valuation based on financial results of investee: ▪ _________ audit evidence supporting investee’s results ▪ Reading available financial statements of investee

Answer 293

• Valuation: o For valuation based on financial results of investee: ▪ Obtaining audit evidence supporting investee’s results ▪ Reading available financial statements of investee

Question 294

• Valuation: o For valuation based on financial results of investee: ▪ Obtaining audit _________ supporting investee’s results ▪ Reading available financial statements of investee

Answer 294

• Valuation: o For valuation based on financial results of investee: ▪ Obtaining audit evidence supporting investee’s results ▪ Reading available financial statements of investee

Question 295

• Valuation: o For valuation based on financial results of investee: ▪ Obtaining audit evidence _____________ investee’s results ▪ Reading available financial statements of investee

Answer 295

• Valuation: o For valuation based on financial results of investee: ▪ Obtaining audit evidence supporting investee’s results ▪ Reading available financial statements of investee

Question 296

• Valuation: o For valuation based on financial results of investee: ▪ Obtaining audit evidence supporting investee’s _________ ▪ Reading available financial statements of investee

Answer 296

• Valuation: o For valuation based on financial results of investee: ▪ Obtaining audit evidence supporting investee’s results ▪ Reading available financial statements of investee

Question 297

• Valuation: o For valuation based on financial results of investee: ▪ Obtaining audit evidence supporting investee’s results ▪ ________ available financial statements of investee

Answer 297

• Valuation: o For valuation based on financial results of investee: ▪ Obtaining audit evidence supporting investee’s results ▪ Reading available financial statements of investee

Question 298

• Valuation: o For valuation based on financial results of investee: ▪ Obtaining audit evidence supporting investee’s results ▪ Reading available __________ statements of investee

Answer 298

• Valuation: o For valuation based on financial results of investee: ▪ Obtaining audit evidence supporting investee’s results ▪ Reading available financial statements of investee

Question 299

• Valuation: o For valuation based on financial results of investee: ▪ Obtaining audit evidence supporting investee’s results ▪ Reading available financial ___________ of investee

Answer 299

• Valuation: o For valuation based on financial results of investee: ▪ Obtaining audit evidence supporting investee’s results ▪ Reading available financial statements of investee

Question 300

• Valuation: o For valuation based on financial results of investee: ▪ Obtaining audit evidence supporting investee’s results ▪ Reading available financial statements of _________

Answer 300

• Valuation: o For valuation based on financial results of investee: ▪ Obtaining audit evidence supporting investee’s results ▪ Reading available financial statements of investee

Question 301

• Valuation: o For valuation based on ________________ of investee: ▪ Obtaining audit evidence supporting investee’s results ▪ Reading available financial statements of investee

Answer 301

• Valuation: o For valuation based on financial results of investee: ▪ Obtaining audit evidence supporting investee’s results ▪ Reading available financial statements of investee

Question 302

• Valuation: o For valuation based on financial results of investee: ▪ Obtaining audit evidence supporting investee’s results ▪ Reading available financial statements of investee o For valuation based on fair ______: ▪ Obtaining quoted market prices on exchanges when available ▪ Obtaining quoted market prices from broker-dealers for unlisted securities ▪ Obtaining estimates, including those using models like Black-Scholes

Answer 302

• Valuation: o For valuation based on financial results of investee: ▪ Obtaining audit evidence supporting investee’s results ▪ Reading available financial statements of investee o For valuation based on fair value: ▪ Obtaining quoted market prices on exchanges when available ▪ Obtaining quoted market prices from broker-dealers for unlisted securities ▪ Obtaining estimates, including those using models like Black-Scholes

Question 303

• Valuation: o For valuation based on ____ value: ▪ Obtaining quoted market prices on exchanges when available ▪ Obtaining quoted market prices from broker-dealers for unlisted securities ▪ Obtaining estimates, including those using models like Black-Scholes

Answer 303

• Valuation: o For valuation based on fair value: ▪ Obtaining quoted market prices on exchanges when available ▪ Obtaining quoted market prices from broker-dealers for unlisted securities ▪ Obtaining estimates, including those using models like Black-Scholes

Question 304

• Valuation: o For valuation based on fair value: ▪ _________ quoted market prices on exchanges when available ▪ Obtaining quoted market prices from broker-dealers for unlisted securities ▪ Obtaining estimates, including those using models like Black-Scholes

Answer 304

• Valuation: o For valuation based on fair value: ▪ Obtaining quoted market prices on exchanges when available ▪ Obtaining quoted market prices from broker-dealers for unlisted securities ▪ Obtaining estimates, including those using models like Black-Scholes

Question 305

• Valuation: o For valuation based on fair value: ▪ Obtaining quoted ______ prices on exchanges when available ▪ Obtaining quoted market prices from broker-dealers for unlisted securities ▪ Obtaining estimates, including those using models like Black-Scholes

Answer 305

• Valuation: o For valuation based on fair value: ▪ Obtaining quoted market prices on exchanges when available ▪ Obtaining quoted market prices from broker-dealers for unlisted securities ▪ Obtaining estimates, including those using models like Black-Scholes

Question 306

• Valuation: o For valuation based on fair value: ▪ Obtaining _______ market prices on exchanges when available ▪ Obtaining quoted market prices from broker-dealers for unlisted securities ▪ Obtaining estimates, including those using models like Black-Scholes

Answer 306

• Valuation: o For valuation based on fair value: ▪ Obtaining quoted market prices on exchanges when available ▪ Obtaining quoted market prices from broker-dealers for unlisted securities ▪ Obtaining estimates, including those using models like Black-Scholes

Question 307

• Valuation: o For valuation based on fair value: ▪ Obtaining quoted market ______ on exchanges when available ▪ Obtaining quoted market prices from broker-dealers for unlisted securities ▪ Obtaining estimates, including those using models like Black-Scholes

Answer 307

• Valuation: o For valuation based on fair value: ▪ Obtaining quoted market prices on exchanges when available ▪ Obtaining quoted market prices from broker-dealers for unlisted securities ▪ Obtaining estimates, including those using models like Black-Scholes

Question 308

• Valuation: o For valuation based on fair value: ▪ Obtaining quoted market prices on __________ when available ▪ Obtaining quoted market prices from broker-dealers for unlisted securities ▪ Obtaining estimates, including those using models like Black-Scholes

Answer 308

• Valuation: o For valuation based on fair value: ▪ Obtaining quoted market prices on exchanges when available ▪ Obtaining quoted market prices from broker-dealers for unlisted securities ▪ Obtaining estimates, including those using models like Black-Scholes

Question 309

• Valuation: o For valuation based on fair value: ▪ Obtaining quoted market prices on exchanges when available ▪ Obtaining quoted market prices from broker-_________ for unlisted securities ▪ Obtaining estimates, including those using models like Black-Scholes

Answer 309

• Valuation: o For valuation based on fair value: ▪ Obtaining quoted market prices on exchanges when available ▪ Obtaining quoted market prices from broker-dealers for unlisted securities ▪ Obtaining estimates, including those using models like Black-Scholes

Question 310

• Valuation: o For valuation based on fair value: ▪ Obtaining quoted market prices on exchanges when available ▪ Obtaining quoted market prices from broker-dealers for unlisted __________ ▪ Obtaining estimates, including those using models like Black-Scholes

Answer 310

• Valuation: o For valuation based on fair value: ▪ Obtaining quoted market prices on exchanges when available ▪ Obtaining quoted market prices from broker-dealers for unlisted securities ▪ Obtaining estimates, including those using models like Black-Scholes

Question 311

• Valuation: o For valuation based on fair value: ▪ Obtaining quoted market prices on exchanges when available ▪ Obtaining quoted market prices from broker-dealers for _______ securities ▪ Obtaining estimates, including those using models like Black-Scholes

Answer 311

• Valuation: o For valuation based on fair value: ▪ Obtaining quoted market prices on exchanges when available ▪ Obtaining quoted market prices from broker-dealers for unlisted securities ▪ Obtaining estimates, including those using models like Black-Scholes

Question 312

• Valuation: o For valuation based on fair value: ▪ Obtaining quoted market prices on exchanges when available ▪ Obtaining quoted market prices from broker-dealers for unlisted securities ▪ Obtaining _________, including those using models like Black-Scholes

Answer 312

• Valuation: o For valuation based on fair value: ▪ Obtaining quoted market prices on exchanges when available ▪ Obtaining quoted market prices from broker-dealers for unlisted securities ▪ Obtaining estimates, including those using models like Black-Scholes

Question 313

• Valuation: o For valuation based on fair value: ▪ Obtaining quoted market prices on exchanges when available ▪ Obtaining quoted market prices from broker-dealers for unlisted securities ▪ Obtaining estimates, including those using models like ______-Scholes

Answer 313

• Valuation: o For valuation based on fair value: ▪ Obtaining quoted market prices on exchanges when available ▪ Obtaining quoted market prices from broker-dealers for unlisted securities ▪ Obtaining estimates, including those using models like Black-Scholes

Question 314

• __________ o For valuation based on cost: o For valuation based on financial results of investee: o For valuation based on fair value:

Answer 314

• Valuation: o For valuation based on cost: o For valuation based on financial results of investee: o For valuation based on fair value:

Question 315

• Valuation: o For valuation ______ on cost: o For valuation ______ on financial results of investee: o For valuation ______ on fair value:

Answer 315

• Valuation: o For valuation based on cost: o For valuation based on financial results of investee: o For valuation based on fair value:

Question 316

• Valuation: o For valuation based on ____: o For valuation based on _________________________: o For valuation based on ___________:

Answer 316

• Valuation: o For valuation based on cost: o For valuation based on financial results of investee: o For valuation based on fair value:

Question 317

What are derivatives investment valuation based on? • Valuation: o For valuation based on ____: o For valuation based on financial results of _________: o For valuation based on ____ value:

Answer 317

What are derivatives investment valuation based on? • Valuation: o For valuation based on cost: o For valuation based on financial results of investee: o For valuation based on fair value:

Question 318

What are derivatives investment valuation based on? • Valuation: o For valuation based on ____: o For valuation based on _________________________: o For valuation based on ___________:

Answer 318

What are derivatives investment valuation based on? • Valuation: o For valuation based on cost: o For valuation based on financial results of investee: o For valuation based on fair value:

Question 319

What are derivatives investment valuation based on?

Answer 319

What are derivatives investment valuation based on? • Valuation: o For valuation based on cost: o For valuation based on financial results of investee: o For valuation based on fair value:

Question 320

``` PERCV: • Presentation and Disclosure • Existence • Rights and Obligations • Completeness • Valuation ``` • Completeness – This may involve - review of minutes of the board of directors or others responsible for governance; - _____ of subsequent transactions for evidence of realization or settlement; - confirmations with counter parties, financial institutions, brokers, and others; and - evaluating beginning amounts for disposition of inclusion in ending amounts.

Answer 320

``` PERCV: • Presentation and Disclosure • Existence • Rights and Obligations • Completeness • Valuation ``` • Completeness – This may involve - review of minutes of the board of directors or others responsible for governance; - tests of subsequent transactions for evidence of realization or settlement; - confirmations with counter parties, financial institutions, brokers, and others; and - evaluating beginning amounts for disposition of inclusion in ending amounts.

Question 321

• Completeness – This may involve - review of _______ of the board of directors or others responsible for governance; - tests of subsequent transactions for evidence of realization or settlement;

Answer 321

• Completeness – This may involve - review of minutes of the board of directors or others responsible for governance; - tests of subsequent transactions for evidence of realization or settlement;

Question 322

• Completeness – This may involve - review of minutes of the board of directors or others responsible for governance; - tests of __________ transactions for evidence of realization or settlement;

Answer 322

• Completeness – This may involve - review of minutes of the board of directors or others responsible for governance; - tests of subsequent transactions for evidence of realization or settlement;

Question 323

• Completeness – This may involve - tests of subsequent _____________ for evidence of realization or settlement;

Answer 323

• Completeness – This may involve - tests of subsequent transactions for evidence of realization or settlement;

Question 324

• Completeness – This may involve - tests of subsequent transactions for ___________ of realization or settlement;

Answer 324

• Completeness – This may involve - tests of subsequent transactions for evidence of realization or settlement;

Question 325

• Completeness – This may involve - tests of subsequent transactions for evidence of realization or __________;

Answer 325

• Completeness – This may involve - tests of subsequent transactions for evidence of realization or settlement;

Question 326

• Completeness – This may involve - tests of subsequent transactions for evidence of ____________ or settlement;

Answer 326

• Completeness – This may involve - tests of subsequent transactions for evidence of realization or settlement;

Question 327

• Completeness – This may involve - tests of subsequent transactions for evidence of realization or settlement; - ____________ with counter parties, financial institutions, brokers, and others;

Answer 327

• Completeness – This may involve - tests of subsequent transactions for evidence of realization or settlement; - confirmations with counter parties, financial institutions, brokers, and others;

Question 328

• Completeness – This may involve - confirmations with ________ parties, financial institutions, brokers, and others;

Answer 328

• Completeness – This may involve - confirmations with counter parties, financial institutions, brokers, and others;

Question 329

• Completeness – This may involve - confirmations with counter ________, financial institutions, brokers, and others;

Answer 329

• Completeness – This may involve - confirmations with counter parties, financial institutions, brokers, and others;

Question 330

• Completeness – This may involve - confirmations with counter parties, _________ institutions, brokers, and others;

Answer 330

• Completeness – This may involve - confirmations with counter parties, financial institutions, brokers, and others;

Question 331

• Completeness – This may involve - confirmations with counter parties, financial ____________, brokers, and others;

Answer 331

• Completeness – This may involve - confirmations with counter parties, financial institutions, brokers, and others;

Question 332

• Completeness – This may involve - confirmations with counter parties, financial institutions, _________, and others;

Answer 332

• Completeness – This may involve - confirmations with counter parties, financial institutions, brokers, and others;

Question 333

• Completeness – This may involve - confirmations with counter parties, financial institutions, brokers, and others; - ___________ beginning amounts for disposition of inclusion in ending amounts.

Answer 333

• Completeness – This may involve - confirmations with counter parties, financial institutions, brokers, and others; - evaluating beginning amounts for disposition of inclusion in ending amounts.

Question 334

• Completeness – This may involve - evaluating ___________ amounts for disposition of inclusion in ending amounts.

Answer 334

• Completeness – This may involve - evaluating beginning amounts for disposition of inclusion in ending amounts.

Question 335

• Completeness – This may involve - evaluating beginning ____________ for disposition of inclusion in ending amounts.

Answer 335

• Completeness – This may involve - evaluating beginning amounts for disposition of inclusion in ending amounts.

Question 336

• Completeness – This may involve - evaluating beginning amounts for ___________ of inclusion in ending amounts.

Answer 336

• Completeness – This may involve - evaluating beginning amounts for disposition of inclusion in ending amounts.

Question 337

• Completeness – This may involve - evaluating beginning amounts for disposition of ___________ in ending amounts.

Answer 337

• Completeness – This may involve - evaluating beginning amounts for disposition of inclusion in ending amounts.

Question 338

• Completeness – This may involve - evaluating beginning amounts for disposition of inclusion in ________ amounts.

Answer 338

• Completeness – This may involve - evaluating beginning amounts for disposition of inclusion in ending amounts.

Question 339

• Completeness – This may involve - evaluating beginning amounts for disposition of inclusion in ending _________.

Answer 339

• Completeness – This may involve - evaluating beginning amounts for disposition of inclusion in ending amounts.

Question 340

• Completeness – This may involve - ______ of minutes of the board of directors or others responsible for governance; - ______ of subsequent transactions for evidence of realization or settlement; - confirmations with counter parties, financial institutions, brokers, and others; and - evaluating beginning amounts for disposition of inclusion in ending amounts.

Answer 340

• Completeness – This may involve - review of minutes of the board of directors or others responsible for governance; - tests of subsequent transactions for evidence of realization or settlement; - confirmations with counter parties, financial institutions, brokers, and others; and - evaluating beginning amounts for disposition of inclusion in ending amounts.

Question 341

• Completeness – This may involve - review of minutes of the board of directors or others responsible for governance; - tests of subsequent transactions for evidence of realization or settlement; - ____________ with counter parties, financial institutions, brokers, and others; and - ___________ beginning amounts for disposition of inclusion in ending amounts.

Answer 341

• Completeness – This may involve - review of minutes of the board of directors or others responsible for governance; - tests of subsequent transactions for evidence of realization or settlement; - confirmations with counter parties, financial institutions, brokers, and others; and - evaluating beginning amounts for disposition of inclusion in ending amounts.

Question 342

• Completeness – This may involve - review of ________ of the board of directors or others responsible for ____________; - tests of subsequent transactions for evidence of realization or settlement; - confirmations with counter parties, financial institutions, brokers, and others; and - evaluating beginning amounts for disposition of inclusion in ending amounts.

Answer 342

• Completeness – This may involve - review of minutes of the board of directors or others responsible for governance; - tests of subsequent transactions for evidence of realization or settlement; - confirmations with counter parties, financial institutions, brokers, and others; and - evaluating beginning amounts for disposition of inclusion in ending amounts.

Question 343

• Completeness – This may involve - review of minutes of the board of directors or others responsible for governance; - tests of ____________ transactions for _________ of realization or settlement; - confirmations with counter parties, financial institutions, brokers, and others; and - evaluating beginning amounts for disposition of inclusion in ending amounts.

Answer 343

• Completeness – This may involve - review of minutes of the board of directors or others responsible for governance; - tests of subsequent transactions for evidence of realization or settlement; - confirmations with counter parties, financial institutions, brokers, and others; and - evaluating beginning amounts for disposition of inclusion in ending amounts.

Question 344

• Completeness – This may involve - review of minutes of the board of directors or others responsible for governance; - tests of subsequent transactions for evidence of ____________ or ___________; - confirmations with counter parties, financial institutions, brokers, and others; and - evaluating beginning amounts for disposition of inclusion in ending amounts.

Answer 344

• Completeness – This may involve - review of minutes of the board of directors or others responsible for governance; - tests of subsequent transactions for evidence of realization or settlement; - confirmations with counter parties, financial institutions, brokers, and others; and - evaluating beginning amounts for disposition of inclusion in ending amounts.

Question 345

• Completeness – This may involve - review of minutes of the board of directors or others responsible for governance; - ______ of subsequent ____________ for evidence of realization or settlement; - confirmations with counter parties, financial institutions, brokers, and others; and - evaluating beginning amounts for disposition of inclusion in ending amounts.

Answer 345

• Completeness – This may involve - review of minutes of the board of directors or others responsible for governance; - tests of subsequent transactions for evidence of realization or settlement; - confirmations with counter parties, financial institutions, brokers, and others; and - evaluating beginning amounts for disposition of inclusion in ending amounts.

Question 346

• Completeness – This may involve - review of minutes of the board of directors or others responsible for governance; - tests of subsequent transactions for evidence of realization or settlement; - ____________ with __________ parties, financial institutions, brokers, and others; and - evaluating beginning amounts for disposition of inclusion in ending amounts.

Answer 346

• Completeness – This may involve - review of minutes of the board of directors or others responsible for governance; - tests of subsequent transactions for evidence of realization or settlement; - confirmations with counter parties, financial institutions, brokers, and others; and - evaluating beginning amounts for disposition of inclusion in ending amounts.

Question 347

• Completeness – This may involve - review of minutes of the board of directors or others responsible for governance; - tests of subsequent transactions for evidence of realization or settlement; - confirmations with counter _______, financial _____________ , brokers, and others; and - evaluating beginning amounts for disposition of inclusion in ending amounts.

Answer 347

• Completeness – This may involve - review of minutes of the board of directors or others responsible for governance; - tests of subsequent transactions for evidence of realization or settlement; - confirmations with counter parties, financial institutions, brokers, and others; and - evaluating beginning amounts for disposition of inclusion in ending amounts.

Question 348

• Completeness – This may involve - review of minutes of the board of directors or others responsible for governance; - tests of subsequent transactions for evidence of realization or settlement; - confirmations with counter parties, financial institutions, brokers, and others; and - evaluating ____________ amounts for disposition of inclusion in _________ amounts.

Answer 348

• Completeness – This may involve - review of minutes of the board of directors or others responsible for governance; - tests of subsequent transactions for evidence of realization or settlement; - confirmations with counter parties, financial institutions, brokers, and others; and - evaluating beginning amounts for disposition of inclusion in ending amounts.

Question 349

• Completeness – This may involve - review of minutes of the board of directors or others responsible for governance; - tests of subsequent transactions for evidence of realization or settlement; - confirmations with counter parties, financial institutions, brokers, and others; and - __________ beginning amounts for disposition of inclusion in ending ___________.

Answer 349

• Completeness – This may involve - review of minutes of the board of directors or others responsible for governance; - tests of subsequent transactions for evidence of realization or settlement; - confirmations with counter parties, financial institutions, brokers, and others; and - evaluating beginning amounts for disposition of inclusion in ending amounts.

Question 350

• Completeness – This may involve - review of minutes of the board of directors or others responsible for governance; - tests of subsequent transactions for evidence of realization or settlement; - confirmations with counter parties, financial institutions, brokers, and others; and - evaluating beginning amounts for ___________ of inclusion in ending _________.

Answer 350

• Completeness – This may involve - review of minutes of the board of directors or others responsible for governance; - tests of subsequent transactions for evidence of realization or settlement; - confirmations with counter parties, financial institutions, brokers, and others; and - evaluating beginning amounts for disposition of inclusion in ending amounts.

Question 351

When an auditor perform: - Reading disclosures to make certain they are in compliance with GAAP Which PERCV this substantive procedure referred to? * Presentation and Disclosure * Existence * Rights and Obligations * Completeness * Valuation

Answer 351

• Presentation and Disclosure – This will involve - reading disclosures to make certain they are in compliance with GAAP; - determining if securities have been pledged as collateral for indebtedness through inquiries and inspection of documents; and - determining that investments are appropriately classified through inquiries of management.

Question 352

When an auditor perform: - Determining if securities have been pledged as collateral for indebtedness through inquiries and inspection of document. Which PERCV this substantive procedure referred to? * Presentation and Disclosure * Existence * Rights and Obligations * Completeness * Valuation

Answer 352

• Presentation and Disclosure – This will involve - reading disclosures to make certain they are in compliance with GAAP; - -> determining if securities have been pledged as collateral for indebtedness through inquiries and inspection of documents; and - determining that investments are appropriately classified through inquiries of management.

Question 353

When an auditor perform: - Determining that investments are appropriately classified through inquiries of management. Which PERCV this substantive procedure referred to? * Presentation and Disclosure * Existence * Rights and Obligations * Completeness * Valuation

Answer 353

• Presentation and Disclosure – This will involve - reading disclosures to make certain they are in compliance with GAAP; - determining if securities have been pledged as collateral for indebtedness through inquiries and inspection of documents; and - -> determining that investments are appropriately classified through inquiries of management.

Question 354

When an auditor perform: - Inspection of securities on hand. Which PERCV this substantive procedure referred to? * Presentation and Disclosure * Existence * Rights and Obligations * Completeness * Valuation

Answer 354

• Existence – This may involve the - inspection of securities on hand; - confirmations with brokers or other third parties either holding securities or who may be counter-parties; - reviewing documents; and, - when appropriate, inspecting documentation of settlement or realization.

Question 355

When an auditor perform: - Confirmations with brokers or other third parties either holding securities or who may be counter-parties. Which PERCV this substantive procedure referred to? * Presentation and Disclosure * Existence * Rights and Obligations * Completeness * Valuation

Answer 355

• Existence – This may involve the - inspection of securities on hand; - confirmations with brokers or other third parties either holding securities or who may be counter-parties; - reviewing documents; and, - when appropriate, inspecting documentation of settlement or realization.

Question 356

When an auditor perform: - Reviewing documents Which PERCV this substantive procedure referred to? * Presentation and Disclosure * Existence * Rights and Obligations * Completeness * Valuation

Answer 356

• Existence – This may involve the - inspection of securities on hand; - confirmations with brokers or other third parties either holding securities or who may be counter-parties; - reviewing documents; and, - when appropriate, inspecting documentation of settlement or realization.

Question 357

When an auditor perform: - Inspecting documentation of settlement or realization. Which PERCV this substantive procedure referred to? * Presentation and Disclosure * Existence * Rights and Obligations * Completeness * Valuation

Answer 357

• Existence – This may involve the - inspection of securities on hand; - confirmations with brokers or other third parties either holding securities or who may be counter-parties; - reviewing documents; and, - when appropriate, inspecting documentation of settlement or realization.

Question 358

When an auditor perform: - Review of documents and confirmations with counter parties. Which PERCV this substantive procedure referred to? * Presentation and Disclosure * Existence * Rights and Obligations * Completeness * Valuation

Answer 358

• Rights and Obligations – This may involve the review of documents and confirmations with counter parties.

Question 359

When an auditor perform: - Review of minutes of the board of directors or others responsible for governance. Which PERCV this substantive procedure referred to? * Presentation and Disclosure * Existence * Rights and Obligations * Completeness * Valuation

Answer 359

• Completeness – This may involve - review of minutes of the board of directors or others responsible for governance; - tests of subsequent transactions for evidence of realization or settlement; - confirmations with counter parties, financial institutions, brokers, and others; and - evaluating beginning amounts for disposition of inclusion in ending amounts.

Question 360

When an auditor perform: - Tests of subsequent transactions for evidence of realization or settlement. Which PERCV this substantive procedure referred to? * Presentation and Disclosure * Existence * Rights and Obligations * Completeness * Valuation

Answer 360

• Completeness – This may involve - review of minutes of the board of directors or others responsible for governance; - tests of subsequent transactions for evidence of realization or settlement; - confirmations with counter parties, financial institutions, brokers, and others; and - evaluating beginning amounts for disposition of inclusion in ending amounts.

Question 361

When an auditor perform: - Confirmations with counter parties, financial institutions, brokers, and others. Which PERCV this substantive procedure referred to? * Presentation and Disclosure * Existence * Rights and Obligations * Completeness * Valuation

Answer 361

• Completeness – This may involve - review of minutes of the board of directors or others responsible for governance; - tests of subsequent transactions for evidence of realization or settlement; - confirmations with counter parties, financial institutions, brokers, and others; and - evaluating beginning amounts for disposition of inclusion in ending amounts.

Question 362

When an auditor perform: - Evaluating beginning amounts for disposition of inclusion in ending amounts. Which PERCV this substantive procedure referred to? * Presentation and Disclosure * Existence * Rights and Obligations * Completeness * Valuation

Answer 362

• Completeness – This may involve - review of minutes of the board of directors or others responsible for governance; - tests of subsequent transactions for evidence of realization or settlement; - confirmations with counter parties, financial institutions, brokers, and others; and - evaluating beginning amounts for disposition of inclusion in ending amounts.

Question 363

When an auditor perform: ▪ Inspection of documentation ▪ Confirmation Which PERCV this substantive procedure referred to? * Presentation and Disclosure * Existence * Rights and Obligations * Completeness * Valuation

Answer 363

• Valuation: o For valuation based on cost: ▪ Inspection of documentation ▪ Confirmation o For valuation based on financial results of investee: ▪ Obtaining audit evidence supporting investee’s results ▪ Reading available financial statements of investee o For valuation based on fair value: ▪ Obtaining quoted market prices on exchanges when available ▪ Obtaining quoted market prices from broker-dealers for unlisted securities ▪ Obtaining estimates, including those using models like Black-Scholes

Question 364

When an auditor perform: ▪ Obtaining audit evidence supporting investee’s results ▪ Reading available financial statements of investee Which PERCV this substantive procedure referred to? * Presentation and Disclosure * Existence * Rights and Obligations * Completeness * Valuation

Answer 364

• Valuation: o For valuation based on cost: ▪ Inspection of documentation ▪ Confirmation o For valuation based on financial results of investee: ▪ Obtaining audit evidence supporting investee’s results ▪ Reading available financial statements of investee o For valuation based on fair value: ▪ Obtaining quoted market prices on exchanges when available ▪ Obtaining quoted market prices from broker-dealers for unlisted securities ▪ Obtaining estimates, including those using models like Black-Scholes

Question 365

When an auditor perform: ▪ Obtaining quoted market prices on exchanges when available ▪ Obtaining quoted market prices from broker-dealers for unlisted securities ▪ Obtaining estimates, including those using models like Black-Scholes Which PERCV this substantive procedure referred to? * Presentation and Disclosure * Existence * Rights and Obligations * Completeness * Valuation

Answer 365

• Valuation: o For valuation based on cost: ▪ Inspection of documentation ▪ Confirmation o For valuation based on financial results of investee: ▪ Obtaining audit evidence supporting investee’s results ▪ Reading available financial statements of investee o For valuation based on fair value: ▪ Obtaining quoted market prices on exchanges when available ▪ Obtaining quoted market prices from broker-dealers for unlisted securities ▪ Obtaining estimates, including those using models like Black-Scholes