See) Assertion ‘Aut Procedure Bistenco or ossuronce 1, Request thatthe cent eonare@ schede ofl cermorel paper held bythe o¥gonztion at yoar er. Veils the existence of tre seuities by cher (1) courting and examining selocte secutties or (2) con firing the existence wit trustees holding them, Revoncie the amounts wit the Keneal ecg. Completeness 2. Foo! the schedule 6f commercial paper and examine the Sebuiles (sep 1). arin selected vansac- tions and brokers" acMows neat yor end to determine Wat the transactions ave recoded in the core peo. igns 3. Btamine eeected documants to determine it tare aco any restcions on the manatabity Of the eeumorts Inguiro of ranagomont 26 to oxistnco of any retritions. Volusion 4. (Note: Commerit paper shou be valued at yearend market value.) Determine cent marke value {trough reference toa financial reporting senive such 8 ora similar electronic source, ‘5 Recompute interest ard determine that accrued interest is prone receded al yea er Presentation ard 6. Determine managemer's intent te hold Seciles asa shortienn investinent Document that intention ascosie la management rerosentation eter, 7. Determine whethoe the Securities are propery cassiioe, and that any restens on thor uso aro appropietel disclosed inthe notes to tho nara statements ‘Although it may sound trivial, if a security is to be held to atu, then there must be an agreed- ‘upon and readily evident date Ot ‘ati {Ot the security. 4. The auditor verifies the cost or sales price of the assets by examining broker's advices evidencing either the purchase or sale of the security. If control risk is low, the verification can be performed on a simple of the transactions 5. The schedule is an abbreviated worksheet. For most audits, the auditor will have to determine whether securities are properly classified either as intent to hold to maturity or trading, That determination must be corroborated by, and consistent with, management’s actions. The appropriate clasifica~ tion determines the accounting valuation, ‘SECURITIES SOLD WITH A PLT OPTION Mavwotabe SaeH¥0S can be sod by an investor (ot the ginal isuen tgether with # pu epton that eetles the pxchaser to Set the Securtiss neck othe investors who sold tho Escutss sta fixed price inthe ‘tue. These securtos oten cam low ios. pit dome audios detmmine wh REESE are properly clasified as short-term or long-term investments? What are the accounting implications of the classifi- cation as short term or long term? What types of evidence does the auditor gather to substantiate management's classification as a short- term security?