Performing Audit Tests of Balances (In-Person and Remotely)—Part 5, Auditing Investments

CPE Credit: 2 hours

For most small to medium-size entities, internal controls over investments will usually be few in number. On the other hand, limiting the authority for making purchases and sales of investment securities, for business combinations and other investment acquisitions to those individuals charged with governance can create entity-level (key) controls that reduce the risk of material misstatement. Without such controls, the assessed level of risk of material misstatement will ordinarily be high.

Topics Covered

• Understanding the accounting standards that affect auditing procedures for investment securities and other investments
• Designing cost-efficient auditing procedures to verify applicable financial statement assertions

Learning Objectives:

• Understand the basic procedures for auditing investments
• Understand the affects of accounting standards on investments auditing procedures
• Learn ways to audit investments more efficiently
• Design and prepare the most efficient documentation of investments auditing procedures