A Client Has a Large and Active Investment Portfolio That

Multiple Choice

A client has a large and active investment portfolio that is kept in a bank safe deposit box. If the auditors are unable to count securities at the balance-sheet date, they most likely will:

A) request the bank to confirm to the auditors 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 auditors can count the securities at a subsequent date.