vv of vests ome 4 nan en ses 14 SUASTANTIVE ‘TEST OF INVESTMENTS cee Foe onentaeeeeerere 2 Mined scruts ag RSENS aldose by at Proce for ng breed MENS ay Ineoduction mrad ope can at depending on Whether os Acute es MOCh pene nt cau combating eons which ee ste Esser model id many et ous ad ndsry. Ona inguin and ines basinerscan determine the economic ute nodal ats fom a iN erp aoSinessaseren ee peau oferta be utr hold conser the ltd ay ne suf meen averinant income, holding ba fy Sees dercgnion seandote tems ns, Audit objectives ‘hes sudiung vestments, th principal objective for the subst to dterine the ling “Assertion Category | —Account Balances Audit 1 Bnstence Air recorded investments on the statenen 3 |” financial postion exist ‘Occurence TAT recorded income ‘Tom Taverewents fceruad ta the entity at the reporting dt Tompleieness Al investments owned by the entity He feporting date are included on the finanlal positon. All income accung fe Investments atthe reporting. date 1 recorded “| Investments are included on he sateen aan SF Mioaten franc psionat he perpen san — Tmo nso on at Supreendte "income at ie 492 The nty oom, oF bas 3 Tal GOAT Investment cued on hema a |p tt Invesimehts ahd vated veiinent ERE] a aa nt neo | dance withthe applestle Pens | Blinesmen ed or te sry nee ate adequatly nd propery dsloed | ures for vestments Pinos primary Substantive procedures fr Ie ie folowing " ee ‘fg the elstence and ownership of secures, | Feuming valuation procedures sccordance wth accounting icles a : Ipescdaing current and potent imines finesnens |. fSStaingminuterof mecting and greemonts and 4} smn "appropriateness of presentation and adequacy of tion x procodres presented n ths txtbook mer iasvote ope aust ‘etch iex pmary sbstantve procedure) foroudts of merchandising rr mcnpcaring et. fs oo proertydegned for aus of yt race a rans hooves tome dgcssone are made for partnership and sole “Aiatrship buses Iv actual practice ew programs most be tflored Fett chon’ vist ond internal contrat. The ava procadres comprsing ‘iat espns nay substan ary rom angagement tote next tots montoned In this textbook relat o primary assertion adaressed inate ade procedures dicissed However some ater ansertins may abo Soiree jstence and Ownership “fo ven the existence and owmership of investments by the cnt, the auditors procedure depends whether the aaa dance of rnerahip rebel by te cent ‘hel ya tird party Vexteation Sine 403sve Test of Investments Srarrgerorendece ern iat Secure eee de creates) or eiden® of omer, yh ene ang i 70" once of ership, by le anand ecmnes eine of O¥MET, The Sarr re he EPO ae AN ghey secures Ee ay anther egotable Insrument af ih hoe apecing he Seti the a shou hy ‘Slows 1. The name(s) of 4 TRenomeratbe E Whtterthe seat E Yaveeanete mum Mey eno heard CRS a otsnckorthe face ale of 2b seg seuteson nce fours eld 0 par rt be Onan istmens| Some of he cons as brokerage fir or banks fr salharpag yt aly i og ts the cst ar il ‘the custodian. Note that the dispatch ent ace ‘confirmation regan, She cuted. Not ht ono ofthe autor afte was Fe ne era oa cient. The autor wut ery gunn momber of share above Cog, mame of as ge contre ptt tf contre Sean ie cstedan sate ration rents wil normaly provide evidence of exec, x Continue, se 9 ree vestments ano com ptr crdapose ofinvesmens wcainonay te edo bans evidence on he Highs ove Assay ae ie shedle Of nvm ut by pereing t of r ye est ay be evormed a following procedures: ermine aut selections from the Investment purchases ul chapter 14 = substan pe inicated owner(s) ofthe securities, fesersofsecurites fey is debtor esl: ers onthe documents: ing Testo ot POSS shown gy 2, Using’ te unique investment Identifier, agre, the dtl [Sccurty purchase and quantity of securities purchase 1 Stpport ofthe tade (eg. tade confirmation from the & iroker of the suit cen . 4 Uns the suppor af the rade veri thatthe purehase wens ‘ald and is recorded inthe appropriate period. ‘4, Perorm fare procedures for any material ferences Po aaa [ince dhique investment denier curity and ant of secunties sold teu ea tee ae of solo ive ea tae contrmation from the autores saree te ‘hen the authorized ol th ude nsw reco heute cantonal 1, evan further procedures for any matenalfertnes ote "a ped gts Of losses arising frm hes f secures Ts tet nay e wumed trough the following procedures coed frocedures, obtain the proof of proceeds received from the sale and jpamoe oss from the sale. a “ Se eeyy dai bo sar mame aoa egg of gna deer tec ena i on on Sera facie Pt ed Sica Lager ree as ‘nals the Accounting Methods Used and Test he Valuation alts ana The med of raat of vestments depends onthe [fete | (pes a Invexments for example, ivestment, i | Elreet —] See acute une 4 28 vee yet eS, | senate acounted in cordance with PAS 26 and PERS [BSS | Since at amore conto a i ale scan] 22 ten acordane th PRS 9, Therefore, te scdure applied bythe sudo pends on he pe oF ovesemeN lose in associate, one venture and subsilary lesen ascot flat venture aed subsidiary may be accounted 0 Tespurte eae statement tera costa fa valve oF wing Uy ‘Sto Tho auditor wl fst verify eh bepnning balance fr he current 485~ = working paper (ECHFINg on _ ts ea by fering wi spe ie enggeman) ies ved at cost, the auditor will also rene cued a 5 aR Wl ao Rg the vere oy ex SUPP on tas ae frnspee sao hh ae 9 a ie ey de rte nvm ci 8 Sing range wey he tre NI ng incepentene alae = vaditor can examine published dividend rere, dnd sed den rece sane los ese EET Ca separate daca wes a is acounted tr vole he ao al xan, {Ce oes gan ave tarket. For example, ithe sha TOT" Blafins soc Exhangr (PSE, the audor wilt aed etcted pe and Muying en Sees a anc ose ot amore cost Financial soe at sorted cost based on ts designation, i meses ‘insegoeatyscamoreaed cost wing fective interest method. Tw BSR nent of the sid fanclaare the auditor wl oat igen rug the engl antance pice of the asset an pee n ‘Shorcston able wing the appropriate rte nominal nd elective tat) and compte with te soon reported the ent Fer paw loss please refer to separate dacsson in this chap. “To tes the asacted interest income from these Investments the sit ‘aay also plan to prtorm a sabre anya procedure 2 Se Income The procedures to perfor this test may nc 1 "bevelpingan expectation finer cme 2°" Determine the average nvestnent balance using the ated year ending balance and curent year ending aint Investec Soa b. Muluply the average investment balance with 4 vert neret at t9 deeming the auaors pea 2 Compare the expected inteet income with the recorded sme 2 Identify and’ perform further procedures to investigate Aiferences note =" ci ‘nono as far value aa ee apm arnerainr compat asshen rset 496 of he aie te hn (80) the autor wil re punts denorninated in freign currency cs daomial S ely caren te str ste (neta caren wana ng hg ein ty~ conslatd FS neste #7 neestmen subarea be counted test at ie Setgy tate Plow rere a Pagans see eres sau noemon in substi x propery ae natures ek rmeipod used. Auditing consolidated F/5 te baskally an audi of the thet lances and transactions ofthe separate F/S of te paren and out) ond ofthe consolidated ners ‘estimpalrments of Investments rama awa | Accounting for impairment depends on the type of (Fogktiees| investment, The auditor therefore should consider the ‘Geena! | apie PPS in evaluating the imprest made y Inanogement. For empl, impairment of investment it nists (eg, ascii, subsidiary, joint venture) should be accounted In seandanes sith PAS 36 Impairment of Ast wile impairment of ancl fretfeg. st amortized cost) Is covered by PRS 8 Inassessng the proprietary of impairment, the auditor should ing with ‘Sotgement thelr approach in dontijing Indestors of tmpairment. and the Sons token as a result-of any potential impairment noted. fan Sigtnnent provision was made or the autor considers fe necessary, che ‘dtr ordinary should perform the liowing procedures: 1 Evaluate the appropriateness of te valuation mode! nd assumptions 2 Roses the reasonableness of managements estimates; and 4 Ghalute the accuracy, completeness, and the relevance of the Important data on which the estimates or measurements ae based, Heview Minutes of Meetings and Agreement Tec i a i YaInvestments Substontive Tet of Investments huper 14 = substantive Ts of onmtee ate statement Presentation and Diggs = Sees —$—$— Tindal 5 we ai Ines ermine that nvesinns 7 Bateneatte Te auto, a aot presented in eras 4 JK Balen th ae a TY Tespery cussed and sate | testthevatuaton sed and pope postion Shor-erm vestments agen Pict Review fnancal statement preseation and | feel oir cn neangare eee oie ence Sat ea ad ssc a amare se soci fe - sen ng ined ee le cnneencliconermenet sc ae | ci ee wide ates ao ns ora 2 componente | (RAEN ¥ Gintenton ot nena ison ee ling tbe sunmarens ery | omens | Sem Sd Semaa where to reeset psmanond | 7 Detleiis ag aw a % ‘Review nace ten pemtton aa apa ies Sider a bres ae 7 print ame din Tare ee 7 ees nome - Share in net income oF et loss of ay Sssociale, Jolnt venture and Shek prevented inthe separate FS. " ~ Grealied holding gains or Toss on fn asset trough profit or loss (FVTPL). ¥ Disposal gain or loss on mos of te! investments. Impairment oss on investments 7 Unrealized gan oF loss on Financal feat Fair Value through Other Compreeni coxher comprehensive |, FVTOCD investments ero ¥ Share. in change’ of other comprotoi| Income’ ‘component of an_ assoc ot venture and subsidiary” presented arte FS ‘The auditor should also very intercompany balances (ie, recta payables) and should check the adequacy of disclosures under PAS Felted Pare Desires Summary ofaudlt procedures lassified por assertion [Assertion Gtegry [pec aarrneeeeaaree ‘aistence 7 Inspection of securities hea bythe ie, Y Confirmation of securities eld bY } pastes etl 7 Bralaing te acsanting meats OE testhevsiation, a7 Raa a a ee alsin and —— [7 Bass ae a 499 Profit or oss (P/1) ‘DeeareRee