Which of the Following Forms of Evidence Would Be Least

question 29

Multiple Choice

Which of the following forms of evidence would be least persuasive in forming the auditor's opinion?

• A)the auditor's count of marketable securities
• B)correspondence with a stockbroker regarding the quantity of the client's investments held in street name by the broker
• C)minutes of the board of directors meeting authorizing the purchase of stock as an investment
• D)responses to auditor's questions by the president and controller regarding the investments account

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Definitions:

Profit-Maximizing Monopolist

A monopolistic firm that seeks to maximize its profits by adjusting output or prices, considering its unique market power without competition.

Profit

The financial gain realized when the amount of revenue gained from a business activity exceeds the expenses, costs, and taxes needed to sustain the activity.

Monopolist

An individual or company that possesses exclusive control over the supply or trade of a commodity or service.

Unregulated Monopolist

A monopoly that operates without government regulation, potentially leading to unfair pricing and poor service.