When Auditing Financial Instruments, a Confirmation Is Sent to the Broker-Dealer

question 76

Multiple Choice

When auditing financial instruments, a confirmation is sent to the broker-dealer

• A) only if the client has poor internal controls.
• B) to confirm interest and dividends.
• C) to provide assurance on realizable value.
• D) to confirm year-end holdings.

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Definitions:

Clouding of the lens

A condition, often referred to as cataract, where the eye's lens becomes opaque or cloudy, leading to decreased vision.

Dermatitis

A broad term that describes inflammation of the skin that can result in an itchy rash or patches.

Osteoporosis

A condition characterized by weakened bones, increasing the risk of fractures, often due to reduced bone mass and deterioration of bone tissue.

Atrophy

The process of tissue breakdown or decrease in size, often due to disease, injury, or lack of use.