CHAPTER 1: NCA

1. KEY CONTROLS OVER NCA => Audit procedures = TOC

- Authorisation : All acquisition or disposal of NCA transactions should be authorised by a responsible person
(management or a high level person)
- Segregation of duties: There should be seperated between the following functions: authorisation of NCA transactions,
recording of NCA transactions, custody NCA,… to reduce the risks of fraud
- Physical controls: the entity should undertake procedures to restrict unauthorised access to NCA such as set up
CCTV/cameras/locked doors/password = undertake NCA count annually
- Information processing: regularly compare NCA register to general ledger to ensure NCA has been correctly
recorded ; depreciation method/rates/useful life should be reviewed annually ; NCA should be maintained and
reviewed for impairment if impairment indicator exists
1.1. TOC

Tangible NCA Intangible NCA

- Inquire the management about control activities of tangible - Inquiry the management about control activities of intangible NCA
NCA such as authorization, segregation of duties, physical such as authorization, segregation of duties, ….
control,… - Inspect the signals of controling documentatons such as approvals,
- Inspect the signals of controling documentations about signature,… and check the control activities
approvals, signature on procurement requesition, order,… - Observe the actual addition process of intangible NCA from starting
- Observe actual addtion process of tangible NCA from to completing
starting to completing - Inquiry the management for annual review of impairment

1
 - Review for thr signal of impairment - Communicate with those charge with government or BOD how
- Inquire the management to check annual review of management handling the difference of amortization expenditure in
impairment of assets. the period.
- Communicate with those charge with government or BOD
how management handling the difference of depreciation
expenses in the period.

2. CHARACTERISTICS
- Long-term investment strategies: The position of NCA in SoFP reflects the company’s long-term investment strategy,
financial stability and growth process
- Larger amounts: NCA usually represents a large amount in SOFP that are expected to provide econonic benefits over a
period longer than one year
- Complex to measure: As NCA offer represents a significant portion of total assets and complex to measure its value ->
susceptible to errors -> auditor should consider the reasonableness of NCA value at the reporting date
- Some risks for auditing NCA:
+ ….
3. SOURE OF INFORMATION FOR AUDITING NCA

Tangible NCA Intangible NCA

- Purchase invoices or documentations, purchase order, purchase - Purchase invoices or documentations

2
 requsition, purchase contract
- The tangible NCA register - The intangible NCA register
- The depreciation expense sheet about record, calculation - The amortization expenditure calculation sheet
- Physical inspection of the assets operated by the auditors - Ledger control amount of intangible NCA
- Trial balance and FSs - Trial balance and FSs
- Ledger control accounts of tangible NCA - License agreement

4. GENERAL RISK OF NCA

 Approach 1:

Tangbile NCA Intangible NCA

- The company do not own the assets actually (right and obilgation) - Expenses being capitalised as NCA inappropriately (existence)
- Omission of assets owned by the company (completeness) - Useful economic life may be overestimated (valuation)
- The assets may be overvalued, either by inflating cost or valuation - Intangible NCA being carried at the wrong cost or valuation
or by undercharging the depreciation expense (valuation) due to inflating the cost or valuation (valuation)\
- The asset may be undervalued, either by not including an - Intangible NCA being carried at the wrong cost or valuation
appropriate revaluation in a policy of revaluation or by due to charging impairment reviews not being carried out
overcharging depreciation expense. (valuation) appropriately (valuation)
- Assets being incorrectly presented in FSs (presentation and - Carrying amount may be excess of expected discounted future
disclosure) benefits (valuation)

3
  Approach 2: (Audit objectives viết ngược lại của risk => áp dụng cho tất cả các chương)
- Existence: NCA recorded in FS but NOT physically exist at reporting date
- Right and obligation: NCA recorded in FS but NOT owned by the company
- Completeness: Omission of NCA accounts in FSs (audit objectives: NCAs that should be included in FSs have been
included in FSs)
- Valuation: NCA recorded in the FS have been overstated or understated
- Presentation and disclosure: NCA recorded and presented in FS has NOT been adequately presented and disclosed
accordance with relevant IAS such as IAS 16,38,40
5. KEY ASSERTAINS AND SUBSTANTIVE PROCEDURES
5.1. Tangible NCA

Assertains TOD

Existence - For a sample of NCA form NCA register physically verify to confirm existence
- Inpsect assets, concentrating on high value items and additions in – year. Confirm that items are
inspended (Exist, Are in use, Are in good condition,…)
- Review records of income-yielding assets
- Reconcile opening and closing vehicles by numbers as well as accounts
- Cast the detailed breakdown of the costs incurred for the new manufacturing line, and confirm
completeness of the addition (addition NCA)
- For a sample of assets which physically exist, agree that they are recorded in the NCA register
(Addition NCA)

4
Valuation  Exisiting assets
- For a sample of cost capitalising into NCA, vouch it back to the original documentations such as
invoices to assess the nature of the cost and confirm whether the company capitalized accurately
- Obtain the depreciation calculation sheet, review and recalculate the depreciation expense to ensure
that depreciation expenses are charged accurately. Discuss with the management to investigate any
significant differences.
 Revaluation assets
- Review the assumptions and method adopted by the valuer to confirm the reasonableness and
compliance with IAS 16
- Cast a schedule of land and buildings to ensure that they agree to the trial balances and FSs
- Agree the schedule of revalued land and buildings to the valuation statement provided by the valuer
and to the NCA register
 Addition of assets
- Review the breakdown of the costs incurred when testing the new line. Discuss with the management
and agree to supporting documentations to confirm the nature of these costs to ensure they are eligible
for capitalisation.
- Discuss with the management the basis of the useful life and how it was derived to ensure thay it
agrees to supporting documentations such as the replacement policy
- Recalculate the depreciation expense to confirm that the calculations have been appropriately time
apportioned and that the depreciation expense only commenced when the asset was brought into use

5
 for the end year
 Depreciation of assets
- Review the NCA register to ensure that the depreciation expense has been charged accurately on all
assets with a finite useful life
- Obtain the depreciation calculation sheet, review and recalculate the depreciation expense to ensure
that they are charged accurately. Discuss with the management to investigate any significant
differences.
- Discuss with the management the basis of depreciation rates to ensure its reasonableness
- Compare ratios of depreciation to NCA (by category) with the previous year and depreciation rates
policy.

Completeness  Existing assets

- Review the NCA disclosures in FSs to ensure thay they meet IAS 16 (PPE) criterias.
 Revaluation assets
- Agree all NCA on the NCA register to the revaluation report to ensure completeness of the NCA
valued to ensure all assets in the same category have been revalued in line with IAS 16
 Addition of assets
- Cast the detailed breakdown of the costs incurred for the new manufacturing line, and confirm
completeness of the addition
- For a sample of assets which physically exist, agree that they are recorded in the NCA register
 Disposals of assets

6
 - Verify disposals with supporting documentations, checking transfer of title, sales price and dates of
completion and payment

5.2. Intangible NCA

Assertains TOD

Existence  R&D cost

- Discuss with the managemet the rationale for the condition to sastify the IAS 38 (Intangible NCA)
such as: feasible techniques, the available resource, intention to complete, ability to use or sell,
measurement reality, proable future economic to consider its reasonableness.
- For the projects, discuss with management the details of each project a long with the stage of
development and whether it has been capitalized or expensed.
- Review the disclosure for intangible NCA in the draft FSs to verify that they are in accordance with
IAS 38

 Goodwill
- Agree the consideration to acquisition agreement by inspection
- Consider whether asset valuation is reasonable
- Review the impairment reviews and discuss with the management

 Other intangible NCA

- Agree purchased intangible NCA to purchase documentations agreement by inspection

7
Valutation  R&D cost
- Obtain the schedule of intangible NCA and cost opening balances, accounts capitalised in the current
year, amortization and closing balances to verify the exsistence and accuracy
- Select a sample of addition transaction and vouch to supporting documentations such as invoices,
calculation sheet) to verify the existence and accuracy
- Cast the detailed breakdown of Intangible assets and agree the trial balance to general ledger and FSs
to ensure the accuracy
- Recalculation amotization calculation sheet and discuss with the management to investigate any
significant differences
 Goodwill
- Agree that the calculation of goodwill is correct by recalculation
- Ensure valuation of goodwill is reasonable
 Other intangible NCA
- Inspect specialist valuation of intangible NCA and ensure it is reasonable
- Review amortization calculation and ensure they are correct by recalculation

CHAPTER 2: CASH AND CASH EQUIVALENTS

8
 1. CONTROL OVER CASH AND CASH EQUIVALENTS
- Segregation of duties: People responsible for handling cash should not be responsible for maintining cash records
- Timely deposit of cheques, preferably on a daily basis: All cash receipts should be deposited daily in the company’s bank
account. This prevents theft and personal use of the money before deposit
- Payments made using non-cash means: Cheques or electronic funds transfer (EFT) provide a separate external record to
verify cash disbursement.
- Periodic bank reconciliation prepared by an independent accounting staff: The bank reconciliation is a report prepard by a
company at a point in time. It identifies discrepancies between the cash balance reported on the bank statement and the
cash balance reported in the company’s cash book
- Authorization: cash receipt journal vouchers prepared from cheque listing a pay-in slips and approved by senior
accounting staff before input into cash book or only authorized staff can make electronic cash payments and issue
cheques
- Performance review: independent review of bank reconciliation
2. CHARACTERISTICS
- Highly liquid : As highly liquid, cash is susceptible to MISSAPPROPRIATION or FRAUDULENT actitivties such as
theft by employees or unauthorised transactions
 Auditor needs to assess the effectiveness of internal control and procedures to prevent and detect fraud
- Amount of cash transaction: Amount of cash flowing into and out of cash account is offer larger than that for any
accounts
 As large amount of cash transaction, cash is susceptible to errors
 Auditor needs to assess the effectiveness of internal control and procedures to prevent and detect fraud

9
 - Show some risk when auditing for cash:

+ Foreign exchange risks: change in excharge rates can impact the value of cash holding and transactions

3. SOURE OF INFORMATION
- Receipts, remittance advices, deposit slips, cash receipt journal, cash disbursement journal, bank reconciliation, bank
confirmation, SoFP, SoCF
4. GENERAL RISK

Cash accounts - Failing to include a check that has not cleared the bank on the outstanding checklist, still has
been recorded in cash disbursement journal
- Record cash receipts by a customer in the current book while the amount received after the
balance sheet date
- Deposits recorded as cash receipts near the end of the year deposited in the bank in the same
month and included in the bank reconciliation as a deposit in transit
- Payments on notes payable debited directly to the bank balance by the bank but not entered in
the client’s records

Cash transactions - Wrongly bill a customer

- Theft of cash by intercepting cash receipts from customers before they are recorded, with the
account charged off as a bad debt
- Duplicate payment of a vendor’s invoice
- Incorrect payments of officers’ personal expenditures

10
 - Payment for goods or services that were not received
- Payment to an employee for more hours than he/she worked
- Payment of interest to a related party for an amount in excess of the going rate

5. INTERNAL CONTROL AND TOC

5.1. Cash Receipts

Control objectives Controls activites TOC

To ensure that all valid cash - Separate responsibilities for the recording, and - Observe the processing of cash and review the entity’s
receipts are received and reconciliation of cash policies to evaluate whether proper segregation of
deposited - Use of electronic cash receipts transfers not duties is operating
received or deposited - Examine application controls for electronic cash
- Monthly bank reconciliations performed and receipts transfer
independently reviewed - Review monthly bank reconciliation to confirm
- Use of cash registers or point-of-sale devices performed and reviewed
- Periodic inspection of cash sales procedures - Observe cash sales procedures
- Enquire of managers about results of inspection

To ensure that all cash - Separate responsibilities for recording, receipt, - Observe the processing of cash and review the entity’s
receipts are recorded and reconciliation of cash policies to evaluate whether proper segregation of
- Use of electronic cash receipts transfers not duties is operating

11
 received or deposited - Examine application controls for electronic cash
- Monthly bank reconciliation performed and receipts transfer
independently reviewed - Review monthly bank reconciliation to confirm
- Daily cash receipts listing reconciled with performed and reviewed
posting to customer’s accounts - Reperform a sample of the reconciliation and review
- Customer statements are prepared and sent out reconciliation
on a regular basis - Inquire management about the hanlding of customer
statements

To ensure that all cash are - Bank reconciliation at the period end - Review and test reconciliation
recorded in the accounting
period correctly

To ensure that all cash - Chart of accounts (COA) in place and is - Inspect any documentary evidence of review
receipts are recorded in the regularly reviewed for appropriateness and - Test application controls for proper codes
correct accounts updated where necessary
- Codes in place for different types of receipts

To ensure that all cash - Daily remittance report reconciled to control - Review reconciliation
receipts are recorded in the listing of the remittance advice - Review bank reconciliations for evidence were
correct amounts - Monthly bank statement performed and performed and independently reviewed
reviewed independently

12
 5.2. Cash Disbursement

Control objectives Control activities TOC

To ensure that only valid - Seperate of responsibilities for recording, - Observe the processing of cash and review the entity’s
cash payments are paid payment and reconciliation of cash policies to evaluate whether proper segregation of
- Reviewing independently supplier statements duties is operating
and reconciling to trade pâyble records - Assessing procedures for reconciling supplier
- Preparing and reviewing monthly bank statements
reconciliation - Review reconciliation to confirm whether monthly
- Only authorized staff has right to issue bank reconciliation are made
electronic cash payment and cheques - Review delegated list of authority of cash payment

To ensure that all cash - Separate the responsibilities for recording, - Observe the processing of cash and review the entity’s
payment that occurred are handling., and reconciling of cash policies to ensure that the segregation of duties is
recorded operating

To ensure that all cash - Chart of accounts (COA) - Review cash payment journal to assess the
payment that occurred are - Independent approval of general ledger reasonableness of charging of accounts
recorded in the correct account assignment - Review assignment of the general ledger account
amounts and accounts

To ensure that cash Reconciliation of electronic funds transfers and Review reconciliation and check it is carried out regurlaly
payments are recorded in the cheques issued with postings to cash payments

13
correct accounting period journal and payable accounts

To ensure that cash - Reconciliation of daily payments reports to - Review the reconciliation to ensure performed,
payments are recorded in the electronic cash payment transfers and cheques reviewed and any discrepancies followed up on a
correct ledger issued timely basis
- Supplier statements reconciled to payable - Review reconciliation for a sample of accounts
accounts regularly

6. SUBSTANTIVE PROCEDURES
6.1. Cash transactions

Audit objectives Subsantive procedures

Occurrence/Existence - Select a sample of cash receipts from cash book and trace to remittance advices pay-in slips
and bank statement
- Select a sample of cash payment from cash book and trace to payment vouchers and bank
statement

Valuation - Compare a sample of remittance advices with amount in cash receipts recorded in the cash
book
- Compare a sample of cheques with amount in cash payments recorded in the cash book

Completeness - Trace a sample of remittance advices and pay-in slips to cash receipt journal
- Trace a sample of payment vouchers to cash book

Cut-off Compare the dates for recording a sample of cash transactions with the dates of cash deposited in
14
 bank or cheques sent

Classification Examine a sample of cash receipts and payments transactions for proper classification

Accuracy Agree the total of cash receipts and payments to general ledger

6.2. Cash balances

Classification, - Review BOD’s minutes bank letter, loan agreementor other documents for any restrictions
Presentation and on cash
dísclosure - Ensure bank loans and overdrafts are not offset against positive bank balances in the FSs

Occurrence, - Agree balance on bank confirmation with bank reconciliation and cash book
completeness and - Trade deposits in transits, outstanding cheques and other reconciling items to cut-off bank
valuation statement

Accuracy Check calculation of bank reconciliation and agree with book balance on cash book and general
ledger

Cut-off - For cash receipts observe cash count for the last day of the year end and trace deposits to
cash receipts journal and cut-off banks statement
- For cash disbursement, record the last cheque issued at the year end date and trace to cash
payments in the cash book; and trace oustanding cheques on bank reconciliation and
investigate any cheques clearing after a long day

7. Bank confirmation and bank reconciliation

7.1. Bank confirmation
15
- A confirmation is mailed to each bank in which the client has an account. The standard bank confirmation reports the
cash balance at the year-end in each account and idicates the amount of any loans outstanding or lines of credit at the
bank currently available to the client
- Important procedures because:
+ Direct confirmation of bank balances is the 3rd-party evidence that gives the auditor independent
+ The bank confirmation may reveal details of security, borrowings and contigent liabilities which need to be disclosed in
FSs…
7.2. Bank reconciliation

The bank reconciliation is a report prepared by a company at a point in time. It identifies discrepancies between the cash
balance reported on the bank statement and the cash balance reported in a business’s cash book

- Audit procedures:
+ Test the mathematical accuracy of the bank reconciliation and agree the balance in the cash book
+ Agree the bank balance on the bank reconciliation with the balance on bank confirmation
+ Agree any charges included on the bank statement to the bank reconciliation
+ Agree the adjusted book balance on the cash account lead schedule
+ Identify irregular itemts and obtain necessary explaination

16
 CHAPTER 3: CAPITAL ACQUISITION AND REPAYMENT CYCLE
1. KEY CONTROL OVER.... = CONTROL ACTIVITES => TOC
1.1. INTERNAL CONTROLS
- Authorisation : there should be clear procedure for authorising loan agreement/share issues (approval by BOD)
- Segregation of duties : Seperate responsibiliteis for initiating, approving, recording,.... to prevent fraud or error
- Physical controls : restrict unauthorised access into relevant documentations such as loan agreement, share certificates,...
- Information processing:
+ Ensure all share issurances are properly documented including : shareholder agreements, subcription documents,...
+ Implement verification procedures to confirm the accuracy of share issurance transactions such as reconciliation of
issurance records with share registers
+ Maintain accurate and up-to-date records of share issurances, including shareholder details, transactions dates issurance
amounts,...
+ Ensure all loan agreements are properly documented including: terms and conditions, repayment schedules, collateral
details,...
1.2. TOC
- Inquiry of mgt to ensure notes payable/share issues have been authorised by responsible person
- Observe of control activitites to ensure that share register/certificate have been kept in safe place
- Inspect of “relevant documentations” for evidence of the control risk to seek the signature of mgt for this transaction to
ensure that the transaction has been authorised by responsible party
- Reperform of the control activity to ensure that the control activities work effectively

17
 2. CHARACTERISTICS
- Unusual transactions: As unusual transaction, it is susceptible to errors. Few transactions but each transaction is often
highly material -> auditor should carefully focus on the transactions
- A legal relationship exits between the client entity and the holder of the stock -> if the entity breaks legal requirements ->
consequences could be material
- Interest or dividends: A direct relationship exists between the interests and dividends and debts & equity -> auditor
should carefully determine/calculate/assess the accuracy of interest or dividends account and debt & equity
- Some risk:
+ ….
3. SOURCE OF INFORMATION
- Client’s internal control policies : financial policies, regulations for issuing loan and notes or share
- FSs: Notes payable and Equity in SoFP, Notes of FSs
- General ledgers and detail accounts books, securities certificate book
- Accounting documents : sales/purchases invoices, credit notes, debit notes, securities count, stockholder records, security
certificate, custody of certificates and agreements
- Other documents: cash inflows or outflows planning, minutes of BOD/finance committee meetings
4. GENERAL RISK
- Incorrectly record value of liabilities/capital stock (Understated liabilities or overstated capital stock)
- Inadequate disclosure of notes payables and stock payable
- Misstatement of interest expense and accrued interest or omission of outstanding notes payable
- Omission or misstatement of a notes payable

18
5. KEY ASSERTAINS AND TOD
5.1. Notes payable and interest

Balance-related audit objectives Common test of detail of balance procedures

Notes payable in the schedule - Confirm note payable

exist (existence) - Examine duplicate copies of notes for authorization
- Examine corporate minutes for loan approval

Existing notes payable are - Examine notes paid after the year-end to determine whether they were liabilities at
included in the notes payable the balance sheet date
schedule (completeness) - Obtain a standard bank confirmation that includes specific reference to the
existence of notes payable from all banks with which client does business
- Review bank reconciliation notes for the new notes credited directly to the bank
account by the bank

Notes payable and accrued - Examine duplicate copies of notes for principal and interest rate
interest on schedule are accurate - Confirm notes payable, interest rates, and last date for which interest has been paid
(accuracy) with holders of notes
- Recalculate accured interest

Notes payables in the schedule - Examine due dates on duplicate copies of notes to determine whether all or part of
are correctly classified the notes are a noncurrent liability
(classification) - Review notes to determine whether any are related party or accounts payable

19
 Notes payable are included in Examine duplicate copies of notes to determine whether notes were dated in or before the
the proper period (cut-off) balance sheet date

The company has an obligation Examine notes to determine whether the company has obligations for payment
to pay the notes payable
(obligation)

Notes payable in the notes - Foot the notes payable list for notes payable and accrued interest
payable schedule agree with the - Trace the totals to general ledger
client’s notes payable register or - Trace the individual notes payable to the master file
master file, and the total is
correctly added and agrees with
the general ledger

5.2. Capital Stock

5.3. Dividend

20
 CHAPTER 4: INVESTMENT CYCLE

1. KEY INTERNAL CONTROLS

- Segregation of duties: Management should separate from approval, account and physical function for the transactions &
custody of the investment
- Proper authorization: Sales/Puchases of investment should be authorised by a responsible person (top of management)
- Physical controls : the investment certificates books & relevant documents should be protected
- Information processing : the independent personnel should check that the processing and recording of investment
transactions fulfil relevant control objectives. Additional, bank reconciliation performed regularly
2. TOC

Make inquiries of - Inquiry accountant that how to account for types of investment; how to recognize, measure,
client personnel present and disclosure the investments
- Make inquiries management about the need for proper investment accounting
estinmates/assumptions; how to prepare estimates; what data used and who revews and
approves the estimates in the period

Inspection/ - Inspect investment documents supporting controls to gain audit evidence that internal controls
examine have operated properly, verifying that an acquisition transaction has been authorised
documents appropriately
- Looking for proper authorizations and walkthrough of controls over the determination of the
fair value of the assets
- Review minutes of the BOD’s meetings for the authorization of significant investment

21
 transactions

Observe control- Observe client’s performance for adequate review and approval of major investing transactions, the
related activiteis system of accounting for them and reporting investment information to management

Reperformce client Reconciliation of bank accounts to ensure they were correctly performed by the entity
procedures

3. CHARACTERISTICS like cash

- Unusual transactions
- A legal relationship:
- Interest
4. SOURE DOCUMENTS FOR OBTAINING EVIDENCE
- FSs : SoFP, SOPL, SOCL, Notes to FSs
- Nominal ledgers and details investment accounts books, securities certificate books; sales/purchase/payroll journals,…
- Accounting documents: sales/purchaes invoices, credit notes, debit notes, securities count, stockholder records, security
certificates, custody of certificates and agreements,…
- External documents: bank reconciliation documents, investors statement reconciliations; loan/market security agreements;
investments portfoliol; marketable security resgistation statements,…
- Client’s internal control policies: regulations of Financial Institutions and Public Securities Market, approval of investing
documents,…

22
 - Other documents: management’s judgement/assumption about FV or impairment of financial assets or liability, cash
in/out flows, financing and investing plans, investor’s plans, minutes of BOD/finance committee meetings,…
5. GENERAL RISK
 Investment Planning
- Fictious investment are recorded due to unauthorized investment transactions
- Investment are intentionally overstated to cover fraud
 Record keeping for investments
- Improper valuation of investment due to their complexity
- Incorrect value of investments
- Investment transactions are recorded in the wrong accountịng period
- Incorrect method of accounting used in investment
 Periodic reconciliation
- Irregular periodic performance review of investment
- Irregular periodic internal audit
6. SUBSTANTIVE PROCEDURES

Audit objectives Substantive procedures

Existence - Inspect supporting documents such as legal documents certificates to ensure the existence of investment
- Review Minutes of BOD’s meetings for evidence that the investments have been approved by top of mgt
- Sent and follow confirmation to 3rd parties to ensure existence of investment
- Vouch new purchases and disposals of investments in the period to supporting documents

23
Completeness - Take a sample of investment documentations from investment master file or certificates books , tracing it back to
accounting book to ensure completeness
- Sent and follow confirmation to 3rd parties to ensure the completeness of investment
- Perform analytical procedures to ensure the completeness
- Inspect of soure documents and tracing tio investments on the FSs

Valuation - Recalculation of closing balance of investment at the reporting date

- Inspect supporting documents such as amounts, interest rate, due rate
- Inspect share price at reporting date in market exchange website, press
- Review FV report made by mgt or external valuer to assess the appropriateness of the method, assumptions used and
the reliability of data used to determine FV assessing the competence, experience and qualification of valuer

Accuracy - Reconcile the investments beginning balance in the schedule to the previous year audited balance
- Request the schedule of all investments from the client and verify the arithmetic accuracy of the schedule by footing
and cross-footing
- Recalculate market values and determine whether investments should be written down in value
- Recalculate investment income based on balances, rates, and investigate significant differences between the
calculated and recorded amounts

Right and - Inspect legal documents such as certificates,… to ensure the company has ownership of investments
obligation - Obtain confirmation from 3rd parties (bank, trustees, investees,…) to confirm ownership of investment

24
Presentation & - Inspect FSs and Note to FS tp ensure that the investment have been presented and disclosed in accordance with
disclosure relevant ISAs

25