When the Client Holds a Large Amount of Negotiable Securities

question 79

Multiple Choice

When the client holds a large amount of negotiable securities, auditors need to plan to guard against:

• A)unauthorized negotiation of the securities before they are counted.
• B)unrecorded sales of securities after they are counted.
• C)substitution of securities already counted for other securities that should be on hand but are not.
• D)substitution of authentic securities with counterfeit securities.

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Definitions:

Economic Underdevelopment

A situation in which a country or region does not fully utilize its resources, resulting in low economic productivity and a lower standard of living.

Dependency Theorists

Scholars who argue that economic disparities between nations stem from the exploitation of poorer countries by wealthier ones.

Brutality

Savage physical violence; great cruelty or a brutal act that demonstrates a lack of humanity or consideration.

Economic Enrichment

An increase in wealth or resources in an economy, leading to better quality of life and economic development.