#8058
Awan Hammad
Participant

    Hi Stephen

    As the financial statements are special purpose financial statements it is acceptable that they record the listed shares at cost and then show a market revaluation account. I note that you have reached a compromise with the accountant to list the shares as a one line entry.

    My view is that agreeing the shares to the platform’s valuation report will not be sufficient audit evidence. The Melissa Caddick case showed that platform (broker) reports can be fraudulently amended with incorrect share holding amounts so the audit evidence you should be obtaining is confirming a sample of shares with the share registry.

    If the platform reports that you refer to are a wrap type report where you cannot confirm share holdings with the share registry you will need to obtain a copy of the audit report in relation to the systems of the wrap entity.

     

    Thanks

    The Auditors Institute

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