In a Manufacturing Company Which One of the Following Audit

question 31

Multiple Choice

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

• A)Confirmation from the broker.
• B)Inspection of year-end brokers' statements.
• C)Vouching all changes during the year to brokers' advises and statements.
• D)Examination of paid checks issued in payment of securities purchased.

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Definitions:

COPD

Chronic Obstructive Pulmonary Disease (COPD) is a chronic inflammatory lung disease causing obstructed airflow from the lungs, symptoms include breathing difficulty, cough, and wheezing.

Bronchitis

an inflammation of the bronchial tubes in the lungs, often resulting in coughing, difficulty breathing, and mucus production.

Emphysema

Disorder of the respiratory system, specifically the lungs, that is characterized by damage to the alveoli, thus reducing the ability to exchange gases with the external environment.

Mycobacterium

A genus of bacteria known for causing diseases such as tuberculosis and leprosy in humans.