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How are the accounts of investor and investee companies affected when the investor acquires stock from stockholders of the investee (eg

Accounting

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1. How are the accounts of investor and investee companies affected when the investor acquires stock from stockholders of the investee (eg. a New York Stock Exchange purchase)? Does this differ if the investee acquires previously unissued stock directly from the investor?

2. Explain Professional Scepticism and It’s benefit to the Auditor? ( 10 Marks)