Investments in Securities

Free CPA AUD (Auditing & Attestation) lesson in Performing Further Procedures and Obtaining Evidence. 17 min read, ~2,571 words.

Existence is tested by confirmation with the custodian for securities held by a third party and physical inspection for certificates held by the entity; both at or near the balance-sheet date. Rights and obligations require evidence of legal title, transfer restrictions, and whether securities are pledged or collateralized; confirmations and...