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See attached document. Requirements 1. Using t...




See attached document. Requirements 1. Using the file labeled ?Security.? Do you think McAfee?s securities portfolio is consistent with her stated goals of ?maximizing return while minimizing risk of loss from temporary price fluctuations?? Justify your answer. 2. What determines whether marketable securities are to be classified as current or noncurrent on the balance sheet? 3. What are the objectives in the audit of marketable securities? What are the most relevant assertions for the auditor to examine? 4. Enter the market data for each security held at December 31, 2009. 5. Add an audit legend (and explain it at the bottom of the worksheet) regarding how market was determined. 6. Draft Audit Adjustment 8 at the bottom of WP 2 to recognize the understatement of interest revenue. The discrepancy results from failure to recognize accrued interest at 12/31/09 (debit account 1205, ?Accrued Interest Receivable?). 7. Draft Audit Adjustment 9 to adjust the loss on decline of market value to reflect the corrected amount. The wide disparity in this instance arises because Biltrite, in adjusting to market at 12/31/09, compared market at 12/31/09 with the cost of the 12/31/08 portfolio, rather than comparing 12/31/09 market with 12/31/09 carrying values. For this adjustment, use account 9702, ?Loss on Decline of Market Value of Securities,? and account 1102, ?Allowance for Decline of Market Value of Securities.?


Paper#13032 | Written in 18-Jul-2015

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