You are in charge of the audit of the financial statements

Assignment Help Accounting Basics

Reference no: EM13588092

You are in charge of the audit of the financial statements of Hawk Corporation for the year ended December 31. The corporation has a policy of investing its surplus cash in marketable securities. Its stock and bond certificates are kept in a safe-deposit box in a local bank. Only the president and the treasurer of the corporation have access to the box.

You were unable to obtain access to the safe-deposit box on December 31 because neither the president nor the treasurer was available. Arrangements were made for your staff assistant to accompany the treasurer to the bank on January 11 to examine the securities. Your assistant has never examined securities that were being kept in a safe-deposit box and requires instructions. To inspect all the securities on hand should not require more than one hour.

Required

A. List the instructions that you would give to your assistant regarding the examination of the stock and bond certificates kept in the safe-deposit box. Include in your instructions the details of the securities to be examined and the reasons for examining these details.

B. Upon returning from the bank, your assistant reported that the treasurer had entered the box on January 4. The treasurer stated that the purpose of the January 4 visit to the safe-deposit box had been to remove an old photograph of the corporation's original building. The photograph was reportedly loaned to the local chamber of commerce for display purposes. List the additional audit procedures that are required because of the treasurer's action.

Reference no: EM13588092

Questions Cloud

On 7109 abc company sold inventory to xyz company for : on 7109 abc company sold inventory to xyz company for 300000. the terms of the sale were downpayment of 75000 and three

Job 218 was one of the many jobs started and completed : job 218 was one of the many jobs started and completed during the year. the job required 4000 in direct materials and

Photosynthesis in plants is two processes the light : photosynthesis in plants is two processes the light reactions and the calvin cycle. compare the light reactions to the

On december 31 it was estimate that goodwill of 40000 was : on december 31 it was estimate that goodwill of 40000 was inpaired. in addition a patent with an estimated economic

You are in charge of the audit of the financial statements : you are in charge of the audit of the financial statements of hawk corporation for the year ended december 31. the

Kerry company has 1000 shares of 100 par value 12 preferred : kerry company has 1000 shares of 100 par value 12 preferred stock and 11000 shares of 10 par value common stock

If pioneer uses select couriers it will sell the vehicle : pioneer construction employs a full-time driver and incurs costs for a vehicle to deliver paperwork between each of

On nov 1 2010 banana corporation management decided to : on nov. 1 2010 banana corporation management decided to discontinue operation of its rocketeer division and approved a

For the coming year bernardino company anticipates a unit : for the coming year bernardino company anticipates a unit selling price of 85 a unit variable cost of 15 and fixed

User Account

All Pages