In Establishing the Existence and Ownership of Long-Term Investments in the Form

question 485

Multiple Choice

In establishing the existence and ownership of long-term investments in the form of publicly-traded stock, an auditor most likely would inspect the securities or:

• A) Correspond with the investee company to verify the number of shares owned.
• B) Confirm the number of shares owned that are held by an independent custodian.
• C) Apply analytical procedures to the dividend income and investments accounts.
• D) Inspect the cash receipts journal for amounts that could represent the sale of securities.

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