The Statement That Is Not True Concerning the Confirmation of Securitiheld

question 50

Multiple Choice

The statement that is not true concerning the confirmation of securitiheld 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:

Accounting Process

A series of procedures and steps taken for the purpose of accounting, including recording, classifying, and summarizing financial transactions.

Accounting Equation

The foundational principle of accounting, stating that assets equal liabilities plus equity.

Source Documents

Original records that contain the details of a business transaction, such as invoices, receipts, and contracts.

Ledger Accounts

Accounts recorded in a ledger, representing a record of the financial transactions by type, whether it's assets, liabilities, equity, income, or expenses.