Reference no: EM132564703
Question - Your client, Global Limited, holds a large portfolio of investments in shares of other entities, approximately 80% of them being listed on the stock exchange. Approximately 800 parcels of shares are held at any time.
The following data on each share parcel is maintained on the share investment master file.
Investment identification number
Date purchased
Investment identification number Date purchased
Date sold Investee name
Total number of shares purchased Number of shares sold
Number of shares currently held
Investment cost for shares currently held
Year-end market value of shares held Profit/loss on sale
Dividend income for the period
Dividend income to date
The above data is maintained on the computer for a period of two years.
REQUIRED -
(a) Identify the two (2) key assertions the auditor will need to address for 'share investments' account balance.
(b) Discuss how general audit software (GAS) other than exception reports, could assist in the audit of these investments for each of the assertions identified in (a) above.
(c) Outline two (2) exception reports which could be produced from the above share investment master file by GAS to help you with substantive testing. Your answer should indicate the details included in the report, the assertion targeted and how the report will be used by the auditor.
(d) Outline two (2) practical programmed application controls that you would expect to find in Global Limited's share investment master file.