When an Auditor Is Unable to Inspect and Count a Client's

question 14

Multiple Choice

When an auditor is unable to inspect and count a client'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 client'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:

Non-Right Handedness

The characteristic of using the left hand more proficiently than the right hand for daily activities.

Cortical Deficits

Impairments in the function or structure of the brain's cortex, potentially affecting cognitive, sensory, or motor functions.

Chemical Castration

The administration of medication designed to reduce libido and sexual activity, often used as a treatment for sex offenders.

Aversive Stimulus

An unpleasant or harmful stimulus used to decrease or prevent a behavior through negative reinforcement or punishment.