Which of the Following Forms of Evidence Would Be Least

question 65

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:

Income Distribution

The way in which total income is shared amongst the population or different groups within society.

Per Capita Incomes

The average income earned per person in a certain area or country, calculated by dividing the area's total income by its total population.

Purchasing Power

The capacity to buy goods and services, often determined by income, savings, and the current prices of goods and services.

Middle-income Households

Families or living units with income levels that fall in the middle range of the overall income distribution, often defined by economic researchers.