Examlex

Solved

For Each Test of Transactions and Each Test of Account

question 60

Essay

For each test of transactions and each test of account balances for investments listed below, identify the assertion for which the test provides evidence.
1. Determine whether there has been any permanent impairment in the value of the cost basis of an individual security.
2. Inspect securities if they are maintained by the entity or obtain a confirmation from an independent custodian.
3. Search for purchases of securities by examining transactions for a few days after year-end.
4. Examine brokers' advices for a sample of securities purchased during the year.


Definitions:

Rate of Flow

The velocity at which a fluid (liquid or gas) moves through a channel, pipe, or porous medium.

Channel

A natural or artificial waterway through which water flows.

Hydrograph

A graph showing the rate of flow (discharge) versus time past a specific point in a river, or other channel or conduit carrying flow.

Summer Thunderstorm

A weather phenomenon characterized by heavy rainfall, lightning, thunder, and occasionally hail, frequently occurring in the summer.

Related Questions