In Establishing the Existence and Ownership of a Long-Term Investment

question 34

Multiple Choice

In establishing the existence and ownership of a long-term investment in stock of a publicly traded company, an auditor should inspect the securities or

• A) Correspond with the investee company to verify the number of shares owned.
• B) Inspect the audited financial statements of the investee company.
• C) Confirm the number of shares owned that are held by an independent custodian.
• D) Determine that the investment is carried at the lower-of-cost-or-market.

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Definitions:

Areola

The pigmented area surrounding the nipple of the breast.

Menstrual Cycle

The regular natural change that occurs in the female reproductive system, specifically the uterus and ovaries, that makes pregnancy possible.

Cyclic Breast Changes

Normal changes in the size, shape, and feel of the breasts related to the menstrual cycle, often resulting in tenderness or lumpiness.

Benign Breast Disease

Non-cancerous conditions of the breast that can cause lumps, pain, or other symptoms.