Substantive audit procedures Existence/ Occurrence (E/O) Rights & obligations (R/O) Completeness (C) Valuation and allocation/Accuracy (V/A) Presentation & disclosure (P/D) a. Inspect securities on...





































































































Substantive audit proceduresExistence/
Occurrence
(E/O)		Rights &
obligations
(R/O)		Completeness
(C)		Valuation and
allocation/Accuracy
(V/A)		Presentation
& disclosure
(P/D)
a. Inspect securities on hand
and confirm securities
held by custodian.
b. Trace serial number
indicated in the security
to the list of investment
securities maintained by
the client
c. The investment securities
listed on the schedule of
investment transactions
of the client are
mathematically accurate
and agree with the
general ledger.
d. Read minutes of meeting
of board of directors
regarding investments
used as collateral for
borrowings.
e. Recalculate gains and
losses on sale of
securities.
f. Recalculate interest and
dividend revenues.
g. Inspect securities
simultaneously with count
of other liquid assets.
h. Verify fair values of
securities with published
price quotations.
i. Obtain an understanding
on management’s process
in classifying investment
securities.
j. Evaluate client’s
procedures on assessing
impairment of
investments.
k. Perform cut-off test on
acquisition and disposal
of investments and
accruals of interests and
dividends.


Requirement:



Check the management assertions that are being validated by the above substantive audit


procedures.



Jun 09, 2022
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