Which of the Following Forms of Evidence Would Be Least

question 124

Multiple Choice

Which of the following forms of evidence would be least persuasive in forming the auditor's opinion about marketable securities and other investments held by the company?

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

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Definitions:

Patent

A legal right granted by a government authority to an inventor to exclude others from making, using, or selling an invention for a certain period of time.

Merchandise Inventory

Goods that a company has in stock and available for sale to customers.

Office Supplies

Items used in offices by businesses and other organizations, typically including small expendable items such as pens, paper, staples, and envelopes.

Closing Process

The accounting procedure used to close out temporary accounts and transfer their balances to permanent accounts at the end of an accounting period.