Which of the following procedures most likely would give the greatest assurance that securities held as investments are safeguarded?

Question

Quizplus · Accepted Answer

Storing securities in a safe or safe-deposit box and periodically inspecting them would provide the greatest assurance that the investments are safeguarded. This control ensures that the securities are physically secure and that any unauthorized access can be detected through periodic inspections. Option A restricts access only between the year-end and the date of the auditor's security count, leaving the securities vulnerable for the rest of the year. Option B would only address the safeguarding of proceeds from the sale of investments and not the investments themselves. Option C ensures that investment acquisitions are authorized but does not address how they are safeguarded once they are acquired.

Which of the Following Procedures Most Likely Would Give the Greatest