Bluth Corporation, a manufacturing company, periodically invests large sums in marketable equity securities. The investment policy is established by the Risk & Investment Committee of the board of directors. The treasurer is responsible for carrying out the committee’s directives. All securities are held by Bluth Corporation’s brokerage company. Required: Develop one test of controls audit procedure for each of the following audit objective:
1. To validate whether an appropriate investment policy has been established at the right level in the organization.
2. To determine whether the treasurer was the only person carrying out the Risk & Investment Committee’s mandate.
3. To evaluate the effectiveness of the physical security of the financial securities stored in the brokerage company’s safe deposit box.