The Auditor Should Insist That a Representative of the Entity

question 58

Multiple Choice

The auditor should insist that a representative of the entity be present during the physical examination of securities in order to:

• A)lend authority to the auditor's directives.
• B)detect forged securities.
• C)coordinate the return of all securities to proper locations.
• D)acknowledge the receipt of securities returned.

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Definitions:

Promissory Estoppel

A legal principle that prohibits a party from withdrawing a promise made to a second party if the latter has reasonably relied on that promise to their detriment.

Statute of Frauds

A legal concept that requires certain types of contracts to be in writing and signed by the party to be charged, in order to be legally enforceable.

Collateral Promise

A collateral promise is a secondary agreement that one party will assume responsibility for another's debt or obligation if that other party fails to fulfill it.

Secondary Obligations

Duties or liabilities that arise not from the primary contract but as a result of ancillary or supplementary agreements or circumstances.