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:

Product Marketing

refers to the process of promoting and selling a product to the consumer, encompassing strategies and tactics used to identify the product's target market, communicate its value, and ensure its distribution.

Stock Brokerage

Firms that act as intermediaries between investors and securities exchanges, facilitating the buying and selling of stocks.

People Management

The practice of recruiting, training, and overseeing employees in a workplace to maximize their performance.

Services

Intangible products provided to consumers, such as repairs, entertainment, or consultation, which do not result in ownership of anything physical.