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

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

1
Q

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
A

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
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2
Q

Investing and Financing Cycle
Internal Controls

Substantive Procedures

Since de________s are required to be reported at fair value,

A

Investing and Financing Cycle
Internal Controls

Substantive Procedures

Since derivatives are required to be reported at fair value,

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3
Q

Investing and Financing Cycle
Internal Controls

Substantive Procedures

Since derivatives are re____ed to be reported at fair value,

A

Investing and Financing Cycle
Internal Controls

Substantive Procedures

Since derivatives are required to be reported at fair value,

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4
Q

Investing and Financing Cycle
Internal Controls

Substantive Procedures

Since derivatives are required to be re____ed at fair value,

A

Investing and Financing Cycle
Internal Controls

Substantive Procedures

Since derivatives are required to be reported at fair value,

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5
Q

Investing and Financing Cycle
Internal Controls

Substantive Procedures

Since derivatives are required to be reported at f__r value,

A

Investing and Financing Cycle
Internal Controls

Substantive Procedures

Since derivatives are required to be reported at fair value,

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6
Q

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

A

Investing and Financing Cycle
Internal Controls

Substantive Procedures

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

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7
Q

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

A

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

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8
Q

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

A

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

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9
Q

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

A

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

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10
Q

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

A

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

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11
Q

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,

A

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,

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12
Q

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.

A

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.

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13
Q

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.

A

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.

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14
Q

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.

A

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.

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15
Q

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.

A

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.

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16
Q

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.

A

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.

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17
Q

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.

A

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.

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18
Q

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.

A

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.

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19
Q

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.

A

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.

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20
Q

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):

A

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):

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21
Q

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):

A

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):

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22
Q

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):

A

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):

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23
Q

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):

A

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):

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24
Q

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):

A

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):

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25
Q

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):

A

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):

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26
Q

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):

A

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):

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27
Q

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):

A

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):

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28
Q

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):

A

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):

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29
Q

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__):

A

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):

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30
Q

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
A

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
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31
Q

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
A

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
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32
Q

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
A

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
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33
Q

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
A

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
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34
Q

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
A

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
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35
Q

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
A

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
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36
Q

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
A

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
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37
Q

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
A

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
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38
Q

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_______
A

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
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39
Q

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
A

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
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40
Q

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
A

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
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41
Q

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
A

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
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42
Q

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
A

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
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43
Q

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__________
A

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
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44
Q

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
A

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
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45
Q

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
A

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
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46
Q

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
A

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
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47
Q

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
A

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
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48
Q

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
  • _________
A

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
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49
Q

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.
A

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.
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50
Q

Substantive Procedures

• Presentation and Disclosure

– This will involve
- r___ing disclosures to make certain they are in compliance with GAAP;

A

Substantive Procedures

• Presentation and Disclosure

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

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51
Q

Substantive Procedures

• Presentation and Disclosure

– This will involve
- reading dis_______s to make certain they are in compliance with GAAP;

A

Substantive Procedures

• Presentation and Disclosure

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

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52
Q

Substantive Procedures

• Presentation and Disclosure

– This will in_____
- reading disclosures to make certain they are in compliance with GAAP;

A

Substantive Procedures

• Presentation and Disclosure

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

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53
Q

Substantive Procedures

• Presentation and Disclosure

– This will involve
- reading disclosures to make cer____ they are in compliance with GAAP;

A

Substantive Procedures

• Presentation and Disclosure

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

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54
Q

Substantive Procedures

• Presentation and Disclosure

– This will involve
- reading disclosures to make certain they are in comp______ with GAAP;

A

Substantive Procedures

• Presentation and Disclosure

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

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55
Q

Substantive Procedures

• Presentation and Disclosure

– This will involve
- reading disclosures to make certain they are in compliance with G__P;

A

Substantive Procedures

• Presentation and Disclosure

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

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56
Q

Substantive Procedures

• Presentation and Disclosure

– This will involve
- reading disclosures to make certain they are in compliance with G____;

A

Substantive Procedures

• Presentation and Disclosure

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

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57
Q

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
A

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
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58
Q

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
A

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
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59
Q

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
A

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
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60
Q

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
A

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
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61
Q

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
A

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
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62
Q

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;
A

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;
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63
Q

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;
A

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;
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64
Q

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;
A

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;
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65
Q

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
A

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
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66
Q

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
A

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
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67
Q

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
A

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
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68
Q

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.
A

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.
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69
Q

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.
A

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.
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70
Q

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_________.
A

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.
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71
Q

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.
A

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.
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72
Q

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.
A

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.
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73
Q

Substantive Procedures

• Existence

– This may involve the
- ins________ of securities on hand

A

Substantive Procedures

• Existence

– This may involve the
- inspection of securities on hand

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74
Q

Substantive Procedures

• Existence

– This may involve the
- inspection of se_____ies on hand;

A

Substantive Procedures

• Existence

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

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75
Q

Substantive Procedures

• Existence

– This may involve the
- inspection of securities on h___;

A

Substantive Procedures

• Existence

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

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76
Q

Substantive Procedures

• Existence

– This may involve the

  • inspection of securities on hand;
  • con________s with brokers
A

Substantive Procedures

• Existence

– This may involve the

  • inspection of securities on hand;
  • confirmations with brokers
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77
Q

Substantive Procedures

• Existence

– This may involve the

  • inspection of securities on hand;
  • confirmations with br______s or other third parties
A

Substantive Procedures

• Existence

– This may involve the

  • inspection of securities on hand;
  • confirmations with brokers or other third parties
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78
Q

Substantive Procedures

• Existence

– This may involve the

  • inspection of securities on hand;
  • confirmations with brokers or other third p___ies
A

Substantive Procedures

• Existence

– This may involve the

  • inspection of securities on hand;
  • confirmations with brokers or other third parties
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79
Q

Substantive Procedures

• Existence

– This may involve the

  • inspection of securities on hand;
  • confirmations with brokers or other third parties either h___ing securities
A

Substantive Procedures

• Existence

– This may involve the

  • inspection of securities on hand;
  • confirmations with brokers or other third parties either holding securities
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80
Q

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;
A

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;
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81
Q

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;
A

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;
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82
Q

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;
A

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;
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83
Q

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;
A

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;
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84
Q

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;
A

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;
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85
Q

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
A

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
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86
Q

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.
A

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.
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87
Q

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.
A

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.
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88
Q

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_______.
A

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.
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89
Q

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.

A

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.

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90
Q

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.

A

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.

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91
Q

Substantive Procedures

• Rights and Obligations

– This may involve the re____ of documents

A

Substantive Procedures

• Rights and Obligations

– This may involve the review of documents

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92
Q

Substantive Procedures

• Rights and Obligations

– This may involve the review of do_______s

A

Substantive Procedures

• Rights and Obligations

– This may involve the review of documents

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93
Q

Substantive Procedures

• Rights and Obligations

– This may involve the review of documents and co_________s with counter parties.

A

Substantive Procedures

• Rights and Obligations

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

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94
Q

Substantive Procedures

• Rights and Obligations

– This may involve the review of documents and confirmations with co______ parties.

A

Substantive Procedures

• Rights and Obligations

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

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95
Q

Substantive Procedures

• Rights and Obligations

– This may involve the review of documents and confirmations with counter p___ies.

A

Substantive Procedures

• Rights and Obligations

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

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96
Q

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.
A

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.
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97
Q

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.
A

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.
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98
Q

Substantive Procedures

• Completeness

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

A

Substantive Procedures

• Completeness

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

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99
Q

Substantive Procedures

• Completeness

– This may involve
- review of mi____s of the board of directors

A

Substantive Procedures

• Completeness

– This may involve
- review of minutes of the board of directors

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100
Q

Substantive Procedures

• Completeness

– This may involve
- review of minutes of the bo___ of directors

A

Substantive Procedures

• Completeness

– This may involve
- review of minutes of the board of directors

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101
Q

Substantive Procedures

• Completeness

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

A

Substantive Procedures

• Completeness

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

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102
Q

Substantive Procedures

• Completeness

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

A

Substantive Procedures

• Completeness

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

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103
Q

Substantive Procedures

• Completeness

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

A

Substantive Procedures

• Completeness

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

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104
Q

Substantive Procedures

• Completeness

– This may involve

  • review of minutes of the board of directors or others responsible for governance;
  • t___s of subsequent transactions
A

Substantive Procedures

• Completeness

– This may involve

  • review of minutes of the board of directors or others responsible for governance;
  • tests of subsequent transactions
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105
Q

Substantive Procedures

• Completeness

– This may involve

  • review of minutes of the board of directors or others responsible for governance;
  • tests of sub________ transactions
A

Substantive Procedures

• Completeness

– This may involve

  • review of minutes of the board of directors or others responsible for governance;
  • tests of subsequent transactions
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106
Q

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;
A

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;
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107
Q

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;
A

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;
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108
Q

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;
A

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;
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109
Q

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_________;
A

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;
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110
Q

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,
A

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,
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111
Q

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,
A

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,
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112
Q

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,
A

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,
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113
Q

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,
A

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,
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114
Q

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,
A

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,
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115
Q

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;
A

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;
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116
Q

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
A

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
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117
Q

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
A

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
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118
Q

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.
A

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.
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119
Q

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.
A

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.
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120
Q

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.
A

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.
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121
Q

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.
A

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.
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122
Q

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.
A

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.
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123
Q

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
A

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
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124
Q

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
A

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
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125
Q

Substantive Procedures

• Valuation:

 o For va\_\_\_\_\_\_\_\_ based on cost:
A

Substantive Procedures

• Valuation:

 o For valuation based on cost:
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126
Q

Substantive Procedures

• Valuation:

 o For valuation based on c\_\_t:
      ▪ Inspection of documentation
A

Substantive Procedures

• Valuation:

 o For valuation based on cost:
      ▪ Inspection of documentation
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127
Q

Substantive Procedures

• Valuation:

 o For valuation based on cost:
      ▪ Ins\_\_\_\_\_\_\_\_  of documentation
A

Substantive Procedures

• Valuation:

 o For valuation based on cost:
      ▪ Inspection of documentation
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128
Q

Substantive Procedures

• Valuation:

 o For valuation based on cost:
      ▪ Inspection of do\_\_\_\_\_\_\_\_\_\_\_\_
      ▪ Confirmation
A

Substantive Procedures

• Valuation:

 o For valuation based on cost:
      ▪ Inspection of documentation
      ▪ Confirmation
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129
Q

Substantive Procedures

• Valuation:

 o For valuation based on cost:
      ▪ Inspection of documentation
      ▪ Confi\_\_\_\_\_\_\_
A

Substantive Procedures

• Valuation:

 o For valuation based on cost:
      ▪ Inspection of documentation
      ▪ Confirmation
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130
Q

Substantive Procedures

• Valuation:

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

 o For va\_\_\_\_\_\_\_\_\_ based on financial results of investee:
A

Substantive Procedures

• Valuation:

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

 o For valuation based on financial results of investee:
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131
Q

Substantive Procedures

• Valuation:

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

 o For valuation based on fin\_\_\_\_\_\_\_ results of investee:
A

Substantive Procedures

• Valuation:

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

 o For valuation based on financial results of investee:
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132
Q

Substantive Procedures

• Valuation:

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

 o For valuation based on financial re\_\_\_\_s of investee:
A

Substantive Procedures

• Valuation:

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

 o For valuation based on financial results of investee:
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133
Q

Substantive Procedures

• Valuation:

 o For valuation based on financial results of inv\_\_\_\_\_\_:
      ▪ Obtaining audit evidence
A

Substantive Procedures

• Valuation:

 o For valuation based on financial results of investee:
      ▪ Obtaining audit evidence
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134
Q

Substantive Procedures

• Valuation:

 o For valuation based on financial results of investee:
      ▪ Ob\_\_\_\_ng audit evidence
A

Substantive Procedures

• Valuation:

 o For valuation based on financial results of investee:
      ▪ Obtaining audit evidence
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135
Q

Substantive Procedures

• Valuation:

 o For valuation based on financial results of investee:
      ▪ Obtaining au\_\_\_ evidence
A

Substantive Procedures

• Valuation:

 o For valuation based on financial results of investee:
      ▪ Obtaining audit evidence
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136
Q

Substantive Procedures

• Valuation:

 o For valuation based on financial results of investee:
      ▪ Obtaining audit ev\_\_\_\_\_\_\_ supporting investee’s results
A

Substantive Procedures

• Valuation:

 o For valuation based on financial results of investee:
      ▪ Obtaining audit evidence supporting investee’s results
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137
Q

Substantive Procedures

• Valuation:

 o For valuation based on financial results of investee:
      ▪ Obtaining audit evidence su\_\_\_\_\_\_ing investee’s results
A

Substantive Procedures

• Valuation:

 o For valuation based on financial results of investee:
      ▪ Obtaining audit evidence supporting investee’s results
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138
Q

Substantive Procedures

• Valuation:

 o For valuation based on financial results of investee:
      ▪ Obtaining audit evidence supporting investee’s re\_\_\_\_s
A

Substantive Procedures

• Valuation:

 o For valuation based on financial results of investee:
      ▪ Obtaining audit evidence supporting investee’s results
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139
Q

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
A

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
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140
Q

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
A

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
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141
Q

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
A

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
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142
Q

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\_\_\_\_\_\_\_\_
A

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
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143
Q

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:
A

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:
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144
Q

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:
A

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:
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145
Q

Substantive Procedures

• Valuation:

 o For valuation based on fair va\_\_\_:
      ▪ Obtaining quoted market prices on exchanges
A

Substantive Procedures

• Valuation:

 o For valuation based on fair value:
      ▪ Obtaining quoted market prices on exchanges
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146
Q

Substantive Procedures

• Valuation:

 o For valuation based on fair value:
      ▪ Ob\_\_\_\_ing quoted market prices on exchanges
A

Substantive Procedures

• Valuation:

 o For valuation based on fair value:
      ▪ Obtaining quoted market prices on exchanges
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147
Q

Substantive Procedures

• Valuation:

 o For valuation based on fair value:
      ▪ Obtaining q\_\_\_ed market prices on exchanges
A

Substantive Procedures

• Valuation:

 o For valuation based on fair value:
      ▪ Obtaining quoted market prices on exchanges
148
Q

Substantive Procedures

• Valuation:

 o For valuation based on fair value:
      ▪ Obtaining quoted ma\_\_\_t prices on exchanges
A

Substantive Procedures

• Valuation:

 o For valuation based on fair value:
      ▪ Obtaining quoted market prices on exchanges
149
Q

Substantive Procedures

• Valuation:

 o For valuation based on fair value:
      ▪ Obtaining quoted market p\_\_\_es on exchanges
A

Substantive Procedures

• Valuation:

 o For valuation based on fair value:
      ▪ Obtaining quoted market prices on exchanges
150
Q

Substantive Procedures

• Valuation:

 o For valuation based on fair value:
      ▪ Obtaining quoted market prices on exc\_\_\_\_\_\_s when available
A

Substantive Procedures

• Valuation:

 o For valuation based on fair value:
      ▪ Obtaining quoted market prices on exchanges when available
151
Q

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
A

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
152
Q

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
A

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
153
Q

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
A

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
154
Q

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
A

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
155
Q

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
A

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
156
Q

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
A

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
157
Q

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
A

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
158
Q

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,
A

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,
159
Q

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
A

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
160
Q

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
A

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
161
Q

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
A

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
162
Q

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
A

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
163
Q

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:
A

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:
164
Q

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:
A

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:
165
Q

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\_\_\_\_:
A

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:
166
Q

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
A

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
167
Q

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
A

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
168
Q

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
A

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
169
Q

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
A

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
170
Q

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
A

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
171
Q

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
A

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
172
Q

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
A

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
173
Q

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
A

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
174
Q

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
A

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
175
Q

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
A

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
176
Q

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
A

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
177
Q

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
A

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
178
Q

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
A

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
179
Q

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
A

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
180
Q

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
A

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
181
Q

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
A

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
182
Q

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
A

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
183
Q

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
A

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
184
Q

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
A

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
185
Q

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.

A

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.

186
Q

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.
A

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.
187
Q

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

A

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

188
Q

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
A

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
189
Q

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
A

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
190
Q

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
A

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
191
Q

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
A

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
192
Q

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
A

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
193
Q

Derivatives are required to be reported at:

a) Cost
b) Fair Value

A

Derivatives are required to be reported at:

Answer: b) Fair Value

194
Q

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

A

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.

195
Q

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.

A

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.

196
Q

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.

A

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.

197
Q

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.

A

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.

198
Q

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.

A

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.

199
Q

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.

A

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.

200
Q

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.

A

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.

201
Q

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.

A

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.

202
Q

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.

A

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.

203
Q

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.

A

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.

204
Q

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.

A

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.

205
Q

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.

A

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.

206
Q

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 ________ .

A

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.

207
Q

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.

A

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.

208
Q

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

A

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

Answer: Management’s Assertions
[ with regard to PERCV ]

209
Q

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

Management’s ______________

A

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

Answer: Management’s Assertions
[ with regard to PERCV ]

210
Q

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

__________________________
[ with regard to PERCV ]

A

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

Answer: Management’s Assertions
[ with regard to PERCV ]

211
Q

” 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
A

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
212
Q

” 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
A

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
213
Q

” 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
A

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
214
Q

” 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
A

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
215
Q

” ▪ 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
A

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
216
Q

” ▪ 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
A

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
217
Q

” ▪ 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
A

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
218
Q

” 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
A

• 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.
219
Q

” 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
A

• 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.
220
Q

” 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
A

• 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.
221
Q

” 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
A

• 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.
222
Q

” 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
A

• 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.
223
Q

” – 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
A

• Rights and Obligations

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

224
Q

” 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
A

• 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.
225
Q

” 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
A

• 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.
226
Q

” 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
A

• 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.
227
Q

” 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
A

• 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.
228
Q

” 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
A

• 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.
229
Q

” 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
A

• 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.
230
Q

” 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
A

• 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.
231
Q

” 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
A

• 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.
232
Q

” 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
A

• 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.
233
Q 
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.
A 
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.
234
Q

• Presentation and Disclosure

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

A

• Presentation and Disclosure

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

235
Q

• Presentation and Disclosure

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

A

• Presentation and Disclosure

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

236
Q

• 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;
A

• 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;
237
Q

• 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;
A

• 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;
238
Q

• Presentation and Disclosure

– This will involve

  • determining if securities have been pledged as __________ for indebtedness through inquiries and inspection of documents;
A

• Presentation and Disclosure

– This will involve

  • determining if securities have been pledged as collateral for indebtedness through inquiries and inspection of documents;
239
Q

• Presentation and Disclosure

– This will involve

  • determining if securities have been pledged as collateral for _____________ through inquiries and inspection of documents;
A

• Presentation and Disclosure

– This will involve

  • determining if securities have been pledged as collateral for indebtedness through inquiries and inspection of documents;
240
Q

• Presentation and Disclosure

– This will involve

  • determining if securities have been pledged as collateral for indebtedness through __________ and inspection of documents;
A

• Presentation and Disclosure

– This will involve

  • determining if securities have been pledged as collateral for indebtedness through inquiries and inspection of documents;
241
Q

• Presentation and Disclosure

– This will involve

  • determining if securities have been pledged as collateral for indebtedness through inquiries and ___________ of documents;
A

• Presentation and Disclosure

– This will involve

  • determining if securities have been pledged as collateral for indebtedness through inquiries and inspection of documents;
242
Q

• 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.
A

• 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.
243
Q

• 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.
A

• 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.
244
Q

• Presentation and Disclosure

– This will involve

  • determining that investments are appropriately _________ through inquiries of management.
A

• Presentation and Disclosure

– This will involve

  • determining that investments are appropriately classified through inquiries of management.
245
Q

• Presentation and Disclosure

– This will involve

  • determining that investments are appropriately classified through __________ of management.
A

• Presentation and Disclosure

– This will involve

  • determining that investments are appropriately classified through inquiries of management.
246
Q

• Presentation and Disclosure

– This will involve

  • determining that investments are appropriately classified through inquiries of ____________.
A

• Presentation and Disclosure

– This will involve

  • determining that investments are appropriately classified through inquiries of management.
247
Q

• 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.
A

• 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.
248
Q

• 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.
A

• 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.
249
Q

• 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.
A

• 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.
250
Q

• 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.
A

• 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.
251
Q

• ____________ 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.
A

• 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.
252
Q

• 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.
A

• 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.
253
Q

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.
A

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.
254
Q

• Existence

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

A

• Existence

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

255
Q

• 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;
A

• 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;
256
Q

• Existence

– This may involve the

  • confirmations with _______ or other third parties either holding securities or who may be counter-parties;
A

• Existence

– This may involve the

  • confirmations with brokers or other third parties either holding securities or who may be counter-parties;
257
Q

• Existence

– This may involve the

  • confirmations with brokers or other third parties either holding _________ or who may be counter-parties;
A

• Existence

– This may involve the

  • confirmations with brokers or other third parties either holding securities or who may be counter-parties;
258
Q

• Existence

– This may involve the

  • confirmations with brokers or other ______ parties either holding securities or who may be counter-parties;
A

• Existence

– This may involve the

  • confirmations with brokers or other third parties either holding securities or who may be counter-parties;
259
Q

• Existence

– This may involve the

  • confirmations with brokers or other third parties either holding securities or who may be ________ -parties;
A

• Existence

– This may involve the

  • confirmations with brokers or other third parties either holding securities or who may be counter-parties;
260
Q

• Existence

– This may involve the

  • confirmations with brokers or other third parties either holding securities or who may be counter-parties;
  • _________ documents;
A

• Existence

– This may involve the

  • confirmations with brokers or other third parties either holding securities or who may be counter-parties;
  • reviewing documents;
261
Q

• Existence

– This may involve the

  • confirmations with brokers or other third parties either holding securities or who may be counter-parties;
  • reviewing _________;
A

• Existence

– This may involve the

  • confirmations with brokers or other third parties either holding securities or who may be counter-parties;
  • reviewing documents;
262
Q

• Existence

– This may involve the

  • reviewing documents;
  • when appropriate, _________ documentation of settlement or realization.
A

• Existence

– This may involve the

  • reviewing documents;
  • when appropriate, inspecting documentation of settlement or realization.
263
Q

• Existence

– This may involve the

  • reviewing documents;
  • when appropriate, inspecting _____________ of settlement or realization.
A

• Existence

– This may involve the

  • reviewing documents;
  • when appropriate, inspecting documentation of settlement or realization.
264
Q

• Existence

– This may involve the

  • reviewing documents;
  • when appropriate, inspecting documentation of ___________ or realization.
A

• Existence

– This may involve the

  • reviewing documents;
  • when appropriate, inspecting documentation of settlement or realization.
265
Q

• Existence

– This may involve the

  • when appropriate, inspecting documentation of settlement or __________.
A

• Existence

– This may involve the

  • when appropriate, inspecting documentation of settlement or realization.
266
Q

• 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.
A

• 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.
267
Q

• 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.
A

• 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.
268
Q

• 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.
A

• 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.
269
Q

• 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.
A

• 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.
270
Q

• 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 ___________.
A

• 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.
271
Q

• 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.
A

• 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.
272
Q 
PERCV:
• Presentation and Disclosure
• Existence
• Rights and Obligations
• Completeness
• Valuation

• Rights and Obligations

– This may involve the _______ of documents and confirmations with counter parties.

A 
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.

273
Q

• Rights and Obligations

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

A

• Rights and Obligations

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

274
Q

• Rights and Obligations

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

A

• Rights and Obligations

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

275
Q

• Rights and Obligations

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

A

• Rights and Obligations

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

276
Q

• Rights and Obligations

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

A

• Rights and Obligations

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

277
Q

• Rights and Obligations

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

A

• Rights and Obligations

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

278
Q

• Rights and Obligations

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

A

• Rights and Obligations

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

279
Q

• _______________________

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

A

• Rights and Obligations

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

280
Q 
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.
A 
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.
281
Q

• Completeness

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

A

• Completeness

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

282
Q

• Completeness

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

A

• Completeness

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

283
Q

• Completeness

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

A

• Completeness

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

284
Q

• Completeness

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

A

• Completeness

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

285
Q

• _______________

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

A

• Completeness

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

286
Q 
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
A 
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
287
Q

• Valuation:

 o For valuation based on cost:
      ▪ \_\_\_\_\_\_\_\_\_\_\_\_ of documentation
      ▪ Confirmation
A

• Valuation:

 o For valuation based on cost:
      ▪ Inspection of documentation
      ▪ Confirmation
288
Q

• Valuation:

 o For valuation based on cost:
      ▪ Inspection of \_\_\_\_\_\_\_\_\_\_\_\_\_\_
      ▪ Confirmation
A

• Valuation:

 o For valuation based on cost:
      ▪ Inspection of documentation
      ▪ Confirmation
289
Q

• Valuation:

 o For valuation based on cost:
      ▪ Inspection of documentation
      ▪ \_\_\_\_\_\_\_\_\_\_\_\_
A

• Valuation:

 o For valuation based on cost:
      ▪ Inspection of documentation
      ▪ Confirmation
290
Q

• 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
A

• 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
291
Q

• 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
A

• 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
292
Q

• Valuation:

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

• Valuation:

 o For valuation based on financial results of investee:
      ▪ Obtaining audit evidence supporting investee’s results
      ▪ Reading available financial statements of investee
293
Q

• Valuation:

 o For valuation based on financial results of investee:
      ▪ \_\_\_\_\_\_\_\_\_ audit evidence supporting investee’s results
      ▪ Reading available financial statements of investee
A

• Valuation:

 o For valuation based on financial results of investee:
      ▪ Obtaining audit evidence supporting investee’s results
      ▪ Reading available financial statements of investee
294
Q

• Valuation:

 o For valuation based on financial results of investee:
      ▪ Obtaining audit \_\_\_\_\_\_\_\_\_ supporting investee’s results
      ▪ Reading available financial statements of investee
A

• Valuation:

 o For valuation based on financial results of investee:
      ▪ Obtaining audit evidence supporting investee’s results
      ▪ Reading available financial statements of investee
295
Q

• Valuation:

 o For valuation based on financial results of investee:
      ▪ Obtaining audit evidence \_\_\_\_\_\_\_\_\_\_\_\_\_ investee’s results
      ▪ Reading available financial statements of investee
A

• Valuation:

 o For valuation based on financial results of investee:
      ▪ Obtaining audit evidence supporting investee’s results
      ▪ Reading available financial statements of investee
296
Q

• Valuation:

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

• Valuation:

 o For valuation based on financial results of investee:
      ▪ Obtaining audit evidence supporting investee’s results
      ▪ Reading available financial statements of investee
297
Q

• Valuation:

 o For valuation based on financial results of investee:
      ▪ Obtaining audit evidence supporting investee’s results
      ▪ \_\_\_\_\_\_\_\_ available financial statements of investee
A

• Valuation:

 o For valuation based on financial results of investee:
      ▪ Obtaining audit evidence supporting investee’s results
      ▪ Reading available financial statements of investee
298
Q

• Valuation:

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

• Valuation:

 o For valuation based on financial results of investee:
      ▪ Obtaining audit evidence supporting investee’s results
      ▪ Reading available financial statements of investee
299
Q

• Valuation:

 o For valuation based on financial results of investee:
      ▪ Obtaining audit evidence supporting investee’s results
      ▪ Reading available financial \_\_\_\_\_\_\_\_\_\_\_ of investee
A

• Valuation:

 o For valuation based on financial results of investee:
      ▪ Obtaining audit evidence supporting investee’s results
      ▪ Reading available financial statements of investee
300
Q

• Valuation:

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

• Valuation:

 o For valuation based on financial results of investee:
      ▪ Obtaining audit evidence supporting investee’s results
      ▪ Reading available financial statements of investee
301
Q

• Valuation:

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

• Valuation:

 o For valuation based on financial results of investee:
      ▪ Obtaining audit evidence supporting investee’s results
      ▪ Reading available financial statements of investee
302
Q

• 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
A

• 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
303
Q

• 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
A

• 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
304
Q

• 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
A

• 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
305
Q

• 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
A

• 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
306
Q

• 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
A

• 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
307
Q

• 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
A

• 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
308
Q

• 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
A

• 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
309
Q

• 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
A

• 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
310
Q

• 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
A

• 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
311
Q

• 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
A

• 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
312
Q

• 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
A

• 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
313
Q

• 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
A

• 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
314
Q

• __________

 o For valuation based on cost:

 o For valuation based on financial results of investee:

 o For valuation based on fair value:
A

• Valuation:

 o For valuation based on cost:

 o For valuation based on financial results of investee:

 o For valuation based on fair value:
315
Q

• Valuation:

 o For valuation \_\_\_\_\_\_ on cost:

 o For valuation \_\_\_\_\_\_ on financial results of investee:

 o For valuation \_\_\_\_\_\_ on fair value:
A

• Valuation:

 o For valuation based on cost:

 o For valuation based on financial results of investee:

 o For valuation based on fair value:
316
Q

• Valuation:

 o For valuation based on \_\_\_\_:

 o For valuation based on \_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_:

 o For valuation based on \_\_\_\_\_\_\_\_\_\_\_:
A

• Valuation:

 o For valuation based on cost:

 o For valuation based on financial results of investee:

 o For valuation based on fair value:
317
Q

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:
A

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:
318
Q

What are derivatives investment valuation based on?

• Valuation:

 o For valuation based on \_\_\_\_:

 o For valuation based on \_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_:

 o For valuation based on \_\_\_\_\_\_\_\_\_\_\_:
A

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:
319
Q

What are derivatives investment valuation based on?

A

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:
320
Q 
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.
A 
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.
321
Q

• 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;
A

• 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;
322
Q

• 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;
A

• 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;
323
Q

• Completeness

– This may involve

  • tests of subsequent _____________ for evidence of realization or settlement;
A

• Completeness

– This may involve

  • tests of subsequent transactions for evidence of realization or settlement;
324
Q

• Completeness

– This may involve

  • tests of subsequent transactions for ___________ of realization or settlement;
A

• Completeness

– This may involve

  • tests of subsequent transactions for evidence of realization or settlement;
325
Q

• Completeness

– This may involve

  • tests of subsequent transactions for evidence of realization or __________;
A

• Completeness

– This may involve

  • tests of subsequent transactions for evidence of realization or settlement;
326
Q

• Completeness

– This may involve

  • tests of subsequent transactions for evidence of ____________ or settlement;
A

• Completeness

– This may involve

  • tests of subsequent transactions for evidence of realization or settlement;
327
Q

• Completeness

– This may involve

  • tests of subsequent transactions for evidence of realization or settlement;
  • ____________ with counter parties, financial institutions, brokers, and others;
A

• Completeness

– This may involve

  • tests of subsequent transactions for evidence of realization or settlement;
  • confirmations with counter parties, financial institutions, brokers, and others;
328
Q

• Completeness

– This may involve

  • confirmations with ________ parties, financial institutions, brokers, and others;
A

• Completeness

– This may involve

  • confirmations with counter parties, financial institutions, brokers, and others;
329
Q

• Completeness

– This may involve

  • confirmations with counter ________, financial institutions, brokers, and others;
A

• Completeness

– This may involve

  • confirmations with counter parties, financial institutions, brokers, and others;
330
Q

• Completeness

– This may involve

  • confirmations with counter parties, _________ institutions, brokers, and others;
A

• Completeness

– This may involve

  • confirmations with counter parties, financial institutions, brokers, and others;
331
Q

• Completeness

– This may involve

  • confirmations with counter parties, financial ____________, brokers, and others;
A

• Completeness

– This may involve

  • confirmations with counter parties, financial institutions, brokers, and others;
332
Q

• Completeness

– This may involve

  • confirmations with counter parties, financial institutions, _________, and others;
A

• Completeness

– This may involve

  • confirmations with counter parties, financial institutions, brokers, and others;
333
Q

• Completeness

– This may involve

  • confirmations with counter parties, financial institutions, brokers, and others;
  • ___________ beginning amounts for disposition of inclusion in ending amounts.
A

• Completeness

– This may involve

  • confirmations with counter parties, financial institutions, brokers, and others;
  • evaluating beginning amounts for disposition of inclusion in ending amounts.
334
Q

• Completeness

– This may involve

  • evaluating ___________ amounts for disposition of inclusion in ending amounts.
A

• Completeness

– This may involve

  • evaluating beginning amounts for disposition of inclusion in ending amounts.
335
Q

• Completeness

– This may involve

  • evaluating beginning ____________ for disposition of inclusion in ending amounts.
A

• Completeness

– This may involve

  • evaluating beginning amounts for disposition of inclusion in ending amounts.
336
Q

• Completeness

– This may involve

  • evaluating beginning amounts for ___________ of inclusion in ending amounts.
A

• Completeness

– This may involve

  • evaluating beginning amounts for disposition of inclusion in ending amounts.
337
Q

• Completeness

– This may involve

  • evaluating beginning amounts for disposition of ___________ in ending amounts.
A

• Completeness

– This may involve

  • evaluating beginning amounts for disposition of inclusion in ending amounts.
338
Q

• Completeness

– This may involve

  • evaluating beginning amounts for disposition of inclusion in ________ amounts.
A

• Completeness

– This may involve

  • evaluating beginning amounts for disposition of inclusion in ending amounts.
339
Q

• Completeness

– This may involve

  • evaluating beginning amounts for disposition of inclusion in ending _________.
A

• Completeness

– This may involve

  • evaluating beginning amounts for disposition of inclusion in ending amounts.
340
Q

• 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.
A

• 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.
341
Q

• 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.
A

• 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.
342
Q

• 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.
A

• 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.
343
Q

• 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.
A

• 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.
344
Q

• 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.
A

• 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.
345
Q

• 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.
A

• 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.
346
Q

• 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.
A

• 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.
347
Q

• 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.
A

• 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.
348
Q

• 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.
A

• 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.
349
Q

• 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 ___________.
A

• 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.
350
Q

• 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 _________.
A

• 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.
351
Q

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
A

• 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.
352
Q

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
A

• 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.
353
Q

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
A

• 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.
354
Q

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
A

• 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.
355
Q

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
A

• 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.
356
Q

When an auditor perform:

  • Reviewing documents

Which PERCV this substantive procedure referred to?

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

• 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.
357
Q

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
A

• 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.
358
Q

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
A

• Rights and Obligations

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

359
Q

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
A

• 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.
360
Q

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
A

• 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.
361
Q

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
A

• 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.
362
Q

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
A

• 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.
363
Q

When an auditor perform:

      ▪ Inspection of documentation
      ▪ Confirmation

Which PERCV this substantive procedure referred to?

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

• 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
364
Q

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
A

• 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
365
Q

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
A

• 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

CPA AUD Flashcards (62 decks)

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