The audit tests for marketable securities need not include a review of broker's advices for cost and sales price of securities as the auditor has more persuasive evidence in the form of deposit tickets and canceled checks.

Question

Quizplus · Accepted Answer

The statement is false. The auditor should review the broker's advices for cost and sales price of securities as they provide additional evidence to support the valuation of marketable securities, which cannot be obtained solely from deposit tickets and canceled checks.

The Audit Tests for Marketable Securities Need Not Include a Review