Auditors should be aware of the following control and monitoring activities typically associated with securities lending EXCEPT:
A) Reviewing counterparties for credit worthiness and obtaining master trade agreements and credit approval for counterparties before entering into stock-loan or stock-borrow transaction
B) Establishing transaction limits by counterparty
C) Obtaining physical possession or control of all collateral
D) Establishing position and credit limits by counterparty
Correct Answer:
Verified
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