1 Identify the Matters the Auditor Should Observe When Inspecting

question 25

Essay

1. Identify the matters the auditor should observe when inspecting securities.
2. List the requirements for the presentation of investments in securities that would conform to the disclosure requirements of accounting standards.

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Definitions:

Participative Budgeting

A budgeting process where employees at all levels are involved in the development of the budget, enhancing its acceptance and usefulness.

Zero-based Budgeting

A budgeting method that starts from a "zero base" every period, requiring all expenses to be justified for each new period, as opposed to being carried forward.

Top-Down Budgeting

A budgeting approach where the budget is created by top-level management and then distributed to lower levels for implementation.

Bottom-Up Budgeting

A budgeting process where the budget is prepared with the input and estimates coming from lower-level staff, before being aggregated and approved at higher levels.