A Client Has a Large and Active Investment Portfolio That

question 370

Multiple Choice

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

• A) Request the bank to confirm to the auditor 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 auditor can count the securities at a subsequent date.

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Definitions:

Importance

The state or quality of being significant, valued, or necessary in a particular context or to a particular person or group.

Education Level

The highest degree or level of school completed by an individual, often used as a demographic variable in market segmentation and research.

Occupation

A person's job or profession, often defining one's skills and economic contribution.

Income

The monetary amount received on a regular basis for work or through investments.