Which of the Following Is Not True Concerning the Confirmation

question 27

Multiple Choice

Which of the following is not true concerning the confirmation of securities held by outsiders for safekeeping?

• A) Confirmations should be requested as of the date other securities are counted.
• B) The auditor must control the mailings.
• 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.
• E) Either positive or negative confirmations can be used.

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Definitions:

Moderate

To regulate or adjust the extent or intensity of an action or condition, often to avoid extremes and achieve balance.

Very High

Describes a degree or level that is significantly above average or normal, often used in a qualitative assessment of variables or outcomes.

Perception

The process by which individuals organize and interpret their sensory impressions to give meaning to their environment.

Impression Management

The process by which individuals attempt to control the perceptions others have of them, often to appear more favorable or competent.