When There Is a Large Number of Negotiable Securities in Multiple

question 18

Multiple Choice

When there is a large number of negotiable securities in multiple locations, careful planning of the physical inspection and count of the securities by the auditor is necessary 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 at one location for other securities that should be on hand at a different location but are not.
• D) Substitution of authentic securities with counterfeit securities.

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Definitions:

Nonprofit Evolution

The process by which nonprofit organizations adapt and change over time to meet emerging societal needs and challenges.

U.S. Nonprofit Sector

The segment of the United States economy composed of organizations that operate for public or social benefit rather than for profit, including charities, foundations, and advocacy groups.

International Classification

A system used to categorize entities or information on a global scale, making international coordination and analysis possible.

Nonprofit Organizations

Entities that operate for the public or social benefit without the primary goal of making profits for owners or shareholders.