For Infrequently Traded Securities, Which Are Material in Amount, the Auditor

question 22

Multiple Choice

For infrequently traded securities, which are material in amount, the auditor should ordinarily:

• A) estimate the market price themselves
• B) require the security to be classified as a long-term investment.
• C) obtain direct confirmation from an independent broker.
• D) inspect the books of the investee directly.

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Definitions:

Black Americans

A term referring to Americans of African descent, emphasizing the distinct cultural and historical experiences of the African American community.

Self-Enhancing Bias

is the tendency to overestimate one's own abilities or attributes and view oneself in an overly favorable light.

Self-Comparison Bias

The tendency to make favorable comparisons between oneself and others, which can lead to an inflated sense of self-esteem or competence.