In a Manufacturing Company,which One of the Following Audit Procedures

question 11

Multiple Choice

In a manufacturing company,which one of the following audit procedures would give the least assurance for the existence of the general ledger balance of investment in stocks and bonds at the audit date?

• A) Confirmation from the broker.
• B) Inspection and count of stocks and bonds.
• C) Vouching all changes during the year to brokers' advices and statements.
• D) Examination of canceled checks issued in payment of securities purchased.

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Definitions:

Estate

The collective assets and liabilities of a person, especially considered in the context of their will or the administration of their property after death.

Codicil

A written supplement or modification to a will. A codicil must be executed with the same formalities as a will.

Per Capita

A statistical measure that divides an aggregate amount by the number of units or individuals to determine the average amount per person.

Lineal Heirs

Direct descendants of an individual, such as children, grandchildren, and so forth, who may inherit from an estate.