Which of the Following Is One of the Auditor's Primary

question 18

Multiple Choice

Which of the following is one of the auditor's primary objectives when externally confirming holdings of marketable securities?

• A)To determine whether recorded securities are properly classified on the statement of financial position.
• B)To determine whether recorded securities are the property of the client.
• C)To determine whether recorded securities are appropriately valued in accordance with accounting standards
• D)To determine whether the internal control system for recorded securities is functioning effectively for the period of the audit.

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Definitions:

ABA Design

An experimental design in which participants first experience the baseline condition (A), then the intervention or treatment (B), and finally return to the baseline (A) to assess change.

Reversibility

The ability of a process or condition to be reversed or returned to its original state.

Quasi-experimental Designs

Research designs that attempt to establish a cause-and-effect relationship but lack random assignment to groups.

Random Assignment

Random assignment is a method used in experiments to assign participants or subjects to different groups in a way that is completely by chance, ensuring the groups are statistically similar in all respects at the start of the experiment.