Which of the following controls would an entity most likely use to assist in satisfying the completeness assertion related to long-term investments?
Answer:
c.The internal auditor compares the securities in the blank safe deposit box with recorded investments
Which of the following internal controls would an entity most likely use to assist in satisfying the completeness assertion related to long-term investments?
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A. Senior management verifies that securities in the bank safe deposit box are registered in the entity’s name.
B. The
internal auditor compares the securities in the bank safe deposit box with recorded investments.
C. The treasurer vouches the acquisition of securities by comparing brokers’ advices with canceled checks.
D. The controller compares the current market prices of recorded investments with the brokers’ advices on file.
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3.Which of the following controls would an entity most likely use to assistin satisfying the completeness assertion related to long-terminvestments?a.The controller compares the current market prices of recordedinvestments with the brokers’ advices on file.b.Senior management verifies that securities in the bank safe depositbox are registered in the entity’s name.c.The internal auditor compares the securities in the bank safedeposit box with recorded investments.d.The treasurer vouches the acquisition of securities by comparingbrokers’ advices with canceled checks.
4.Which of the following controls would an entity most likely use insafeguarding against the loss of investment securities?
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5.When negotiable securities are of considerable volume, planning by theauditor is necessary to guard against
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6.In auditing investments for proper valuation, the auditor should do allbut the following: