[AUD] Investments

Securities: tradable financial assets
Equity Security	Fixed income(Bond)	Commedities
0~20%: stock FV 21~50%: Equity Method                  불입 investment / cash           손익변동 investment/ invest income                  배당 cash / investment                  * divi income>divi record book	Trading  FV      NI AFS       FV      OCI HTM      amort  X	Gold, Silver
Derivatives
Possible risk, Loss > Disclose

 

Custody

Independent-3rd Party  (Trust)	Safe-deposit box
- no direct contact to EE - record-keeping resp - possession of securities * confirmation ( Existence + Right&obligation )	- joint control by two officers - client should be present during inspection - acknowledgment by client> returned intact after examine

*Simultaneous verification: liquid nature> YE simultaneously with the audit of cash, bank loans 

 

Record keeping

Independent unit

no access to custody of investment

no access to physical selling

 

Relevant Control> each, independent unit: Strong IC

transaction

valuation

record

authorizing

 

ST Procedure

- Compare PY balance/work paper with FS

- Compare CY balance with general ledger/trial balance

- Analytical procedure to assess the reasonableness of the account

   compute interest income

   compare dividend income published by investment advisory service

   completeness of recorded investment income