Which of the Following Audit Procedures Would Not Likely Be

question 80

Multiple Choice

Which of the following audit procedures would not likely be performed for audits of investments?

• A)Read board of directors' minutes for authorization of investment strategies.
• B)Confirm investments with registrar.
• C)Confirm investments with broker or trustee.
• D)Compare valuation to published market prices.

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Definitions:

Journal Entry

A record in accounting journals that represents a business transaction and includes details like date, amounts, and accounts affected.

Semiannual Interest Payment

A type of interest payment made twice a year on bonds or other fixed-income securities.

Journal Entry

A record in accounting that represents a transaction and its effect on various accounts within the financial statements.

Trading Securities

Financial instruments held by a firm for the purpose of short-term profit through trading on a stock exchange.