An Entity Has a Large and Active Investment Portfolio That

question 27

Multiple Choice

An entity has a large and active investment portfolio that is kept in a bank safe-deposit box. If the auditor is unable to examine and count the securities at the balance sheet date but will examine and count the securities shortly thereafter, the auditor most likely will

• A) Request that the bank confirm to the auditor the contents of the safe-deposit box at the balance sheet date.
• B) Examine supporting evidence for transactions occurring during the year.
• C) Count the securities at a subsequent date and confirm with the bank whether securities were added or removed since the balance sheet date.
• D) Request that the entity have the bank seal the safe-deposit box until the auditor can count the securities at a subsequent date.

---

Definitions:

Verbal Aptitude

The ability to understand and process words and language, both in speaking and writing.

Gender Gap

The difference in opportunities, status, attitudes, etc., between men and women, often resulting in disparities.

Mathematical Abilities

The cognitive capacities related to understanding, manipulating, and solving mathematical concepts and problems.

Socially Influenced

Being affected or altered by the social context, including behaviors, opinions, or decisions that are impacted by others or societal norms.