XYZ Company Has Investment Securities Held by a Broker

question 48

Short Answer

XYZ Company has investment securities held by a broker.An auditor is reviewing the last broker's statement for the year.For each of the tests 1-5,select the ASB balance assertions listed in A-D that the auditor is testing. _____1. Verified the name on the account was the company's name.                    A. Rights and obligations
_____ 2. Vouched items listed on the statement to the                                           B. Completeness investment account.
______3. Vouched purchases listed on the statement authorization by senior management or the board of directors. to                                         C. Valuation or Accuracy
______4. The auditor has received a letter of directly from the broker for investments listed on the statement.confirmation                               D. Existence
______5. The auditor compared the price of the securities listed on the broker's statement with the price listed on that day in The Wall Street Journal to the price used to record the investment on the balance sheet.

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