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:

Basal Cells

Cells found at the base of the epidermis and hair follicles, responsible for generating new skin cells and hair.

Olfactory Epithelium

The specialized tissue in the nasal cavity responsible for detecting odors.

Rods

Photoreceptor cells in the retina of the eye that are highly sensitive to light, making them crucial for vision in low light conditions.

Dim Light

Low-level lighting that is not bright or glaring.