All of the Following Can Assist the Auditor in Testing

question 40

Multiple Choice

All of the following can assist the auditor in testing the existence assertion for investment securities except:

• A)physical examination.
• B)comparing fair value to cost.
• C)confirmation with the issuer.
• D)confirmation with the custodian.

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Definitions:

Matching Hypothesis

A theory suggesting that people are more likely to form and succeed in a committed relationship with someone who is equally socially desirable.

Operant Conditioning

A method of learning where the potency of certain actions is changed via positive reinforcement or negative punishment.

Prejudicial Stereotypes

Oversimplified and widely held beliefs about a particular group of people that are often negative and unfair.

Insidious

Proceeding in a gradual, subtle way but with harmful effects, often without being noticed until it is too late.