Auditing and Assurance Services 1st Edition by Iris Stuart

Exercise 35

Investment securities. General Office Machines has investments in available-forsale, trading, and held-to maturity securities. It buys and sells investments in each investment category each year.
a. Describe the risks associated with the audit of investment securities for General Office Machines at year-end.
b. What evidence should the auditors gather to determine that the investment balance is not materially misstated at year-end