The Auditor Should Insist That a Representative of the Entity

question 58

Multiple Choice

The auditor should insist that a representative of the entity be present during the physical examination of securities in order to:

• A)lend authority to the auditor's directives.
• B)detect forged securities.
• C)coordinate the return of all securities to proper locations.
• D)acknowledge the receipt of securities returned.

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Definitions:

Valuable Goods

Items or resources that are considered of high value in economic, cultural, or personal terms.

Large-Scale Production

Refers to the manufacture of large quantities of products in efficient and cost-effective methods, often using automation and sophisticated technology.

Environmental Destruction

The degradation of the environment through depletion of resources such as air, water, and soil; the destruction of ecosystems; habitat destruction; the extinction of wildlife; and pollution.

Impoverishment

The condition of being poor or lacking the necessary means of subsistence and financial resources.