Which of the Following Procedures Most Likely Would Give the Greatest

question 46

Multiple Choice

Which of the following procedures most likely would give the greatest assurance that securities held as investments are safeguarded?

• A)There is no access to securities between the year-end and the date of the auditor's security count.
• B)Proceeds from the sale of investments are received by an employee who does not have access to securities.
• C)Investment acquisitions are authorized by a member of the Board of Directors before execution.
• D)When securities are held by the entity, they are stored in a safe or safe-deposit box and periodically inspected.

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Definitions:

Marginal Tax Rate

Marginal Tax Rate is the rate at which the last dollar of income is taxed, indicating the percentage of tax applied to your income for each tax bracket in which you qualify.

Total Income

The sum of all earnings and other forms of income received by an individual or entity over a period of time.

Average Tax Rate

The percentage of total income that is paid in taxes.

Marginal Tax Rate

The percentage of tax applied to your next dollar of income, indicating the rate at which your last dollar earned is taxed.