Substantive

Test of
Investments
 • Identify the audit objectives
for investments and related
accounts.
• Describe the primary
Learning substantive procedures for
investments and related
Objectives accounts.
• Identify assertions addressed
by audit procedures for
investments and related
accounts.
Audit Objectives
Assertions Account Balances Audit Objectives
Existence All recorded Investments on the statement of
financial position exist.
Occurrence All recorded income from investments has accrued to
the entity at the reporting date.
Completeness All investments owned bu the entity at the reporting
date are included on the statement of financial
position. All income accruing from investments at the
reporting date has been recorded.
Audit Objectives
Assertions Account Balances Audit Objectives
Valuation and Investments are included on the statement of
Allocation financial position at the appropriate amounts.
Accuracy Investment income is included on the statement of
comprehensive income at the appropriate amount.
Classification Income Statement related items are appropriately
recorded in the proper accounts in the statement of
comprehensive income.
Audit Objectives
Assertions Account Balances Audit Objectives
Rights and The entity owns, or has a legal right to the
Obligations investments included on the statement of financial
position.
Presentation and Investments and related investment income
Disclosure accounts are properly classified, described, and
disclosed in the financial statements, including
notes, in accordance with applicable PFRS.
Audit Procedures
• Verifying the existence and ownership of
securities;
• Performing valuation procedures in accordance
with accounting policies;
• Investigating current and potential impairments
of investments.
Audit Procedures
• Reviewing board of director’s (BOD) minutes of
meetings, shareholders meeting, committee
(i.e., investment committee) meetings and
agreements; and
• Reviewing appropriateness of presentation and
adequacy of disclosure;
Summary of audit procedures
Assertions Primary Audit Procedures
Existence • Inspection of securities held by the client.
• Confirmation of securities held by third
parties.
Occurrence • Evaluating the accounting methods used
and test the valuation
Completeness • Detailed minutes of meeting review
Summary of audit procedures
Assertions Primary Audit Procedures
Valuation and • Evaluating the accounting methods used and test
Allocation the valuation.
• Impairment test
Accuracy • Evaluating the accounting methods used and test
the valuation.
Classification • Review financial statement presentation and
disclosure of investments including related
account.
Summary of audit procedures
Assertions Primary Audit Procedures
Rights and • Inspection of securities held by the client.
Obligations • Confirmation of securities held by third
parties.
Presentation • Detailed minutes of meeting review.
and Disclosure • Review financial statement presentation
and disclosure of investments including
related accounts.