The Statement That Is Not True Concerning the Confirmation of Securities

question 30

Multiple Choice

The statement that is not true concerning the confirmation of securities held by outsiders for safe keeping is;

• A) either positive or negative confirmations can be used.
• B) confirmations should be requested as of the date other securities are counted.
• C) the auditor should receive responses directly from the custodian.
• D) the data confirmed are the same as the data that should be noted when the auditor is able to inspect the securities.

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Definitions:

Identifies

Recognizes or establishes the identity of someone or something, often through analysis or comparison.

Recipient

An individual or entity that receives something from another source, such as a transfusion, donation, or award.

Letter Sent

The action of dispatching written correspondence to a specific recipient or address.

Travel Agencies

Businesses that specialize in arranging travel services and accommodations for individuals and groups.