When an Auditor Is Unable to Inspect and Count an Entity's

question 51

Multiple Choice

When an auditor is unable to inspect and count an entity's investment securities until after the balance sheet date, the bank where the securities are held in a safe-deposit box should be notified on or before the balance sheet date that it will be asked to

• A) Verify any differences between the contents of the box and the balances in the entity's subsidiary ledger.
• B) Provide a list of securities added and removed from the box between the balance sheet date and the security-count date.
• C) Confirm that there has been no access to the box between the balance sheet date and the security-count date.
• D) Count the securities in the box so that the auditor will have an independent direct verification.

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Definitions:

Infants

Young children from birth to 1 year of age, who are especially vulnerable and dependent on adults for the provision of their needs.

Sensorimotor Stage

The first stage in Piaget's theory of cognitive development, where infants learn about the world through their sensory and motor interactions.

Concrete Actions

Specific, tangible steps or behaviors undertaken to achieve a goal or solve a problem.

Infant

A very young child or baby, typically under one year of age, who is in the earliest stages of physical and cognitive development.