Auditing and Assurance Services 1st Edition by Iris Stuart

Exercise 12

A client has a large and active investment portfolio that is kept in a bank safedeposit box. If the auditor is unable to count the securities at the balance sheet date, the auditor most likely will
a. Request the bank to confirm to the auditor the contents of the safe-deposit box at the balance sheet date.
b. Examine supporting evidence for transactions occurring during the year.
c. Count the securities at a subsequent date and confirm with the bank whether securities were added or removed since the balance sheet date.
d. Request the client to have the bank seal the safe-deposit box until the auditor can count the securities at a subsequent date.