Carrying amount of a client investments

Reference no: EM13139491

If the auditor discovers that the carrying amount of a client's investments is overstated because of a loss in value that is other than a temporary decline in market value, the auditor should insist that:

a. The approximate market value of the investments be shown in parentheses on the face of the balance sheet.

b. The investments be classified as long term for balance sheet purposes with full disclosure in the footnotes.

c. The loss in value is recognized in the financial statements.

d. The equity section of the balance sheet separately shows a charge equal to the amount of the loss.

Reference no: EM13139491

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