When the client holds a large amount of negotiable securities, auditors need to plan to guard against:
A)unauthorized negotiation of the securities before they are counted.
B)unrecorded sales of securities after they are counted.
C)substitution of securities already counted for other securities that should be on hand but are not.
D)substitution of authentic securities with counterfeit securities.

Question

Quizplus · Accepted Answer

Auditors need to ensure that securities counted are not substituted with other securities that should be on hand but are not, to prevent misstatement of the securities inventory.

When the Client Holds a Large Amount of Negotiable Securities