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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Definitions:

Effective Feedback

Constructive information or criticism given to someone which is intended to help improve or correct future actions.

Instruction

Direction or commands given for the purpose of teaching or educating.

Motivation

The process or factors that stimulate enthusiasm and willingness in individuals to pursue activities or goals.

Personnel Manager

A professional responsible for managing the human resources and staff-related functions within an organization.