The Statement That Is Not True Concerning the Confirmation of Securities

question 30

Multiple Choice

The statement that is not true concerning the confirmation of securities held by outsiders for safe keeping is;

• A) either positive or negative confirmations can be used.
• B) confirmations should be requested as of the date other securities are counted.
• C) the auditor should receive responses directly from the custodian.
• D) the data confirmed are the same as the data that should be noted when the auditor is able to inspect the securities.

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Definitions:

Emergency

A critical situation that arises suddenly and requires immediate action to prevent or mitigate harm to individuals or property.

Negative Evaluation

The process of critically assessing something in a manner that highlights its faults or shortcomings.

Empathy

The ability to understand and share the feelings of another, putting oneself in their shoes emotionally.

Altruistic Behavior

Actions intended to benefit others without expectation of reward for oneself.