When There Is a Large Number of Negotiable Securities in Multiple

question 11

Multiple Choice

When there is a large number of negotiable securities in multiple locations, careful planning of the physical inspection and count of the securities by the auditor is necessary to guard against:

• A)unauthorized negotiation of the securities before they are counted.
• B)unrecorded sales of securities after they are counted.
• C)substitution of securities already counted at one location for other securities that should be on hand at a different location but are not.
• D)substitution of authentic securities with counterfeit securities.

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Definitions:

Ethical Dilemma

A situation where an individual faces a choice between two or more morally right or acceptable courses of action that are in conflict.

Clear Right

An unequivocal entitlement or permission, often established by law or custom, that is not subject to conditions or restrictions.

Cultural Relativism

The principle that an individual's beliefs and activities should be understood based on that person's own culture.

Ethical Perspective

An individual's or society's viewpoint on morals and the principles of right and wrong that guide behavior and decision-making.