A Client Has a Large and Active Investment Portfolio That

question 8

Multiple Choice

A client has a large and active investment portfolio that is kept in a bank safe deposit box. If the auditors are unable to count securities at the balance-sheet date, they most likely will:

• A)request the bank to confirm to the auditors the contents of the safe deposit box at the balance-sheet date.
• B)examine supporting evidence for transactions occurring during the year.
• C)count the securities at a subsequent date and confirm with the bank whether securities were added or removed since the balance-sheet date.
• D)request the client to have the bank seal the safe deposit box until the auditors can count the securities at a subsequent date.

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Definitions:

Organic Structure

A flexible management approach characterized by decentralized authority, fewer formal procedures, and open communication channels.

Munificent Environments

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