To Establish the Existence and Ownership of a Long-Term Investment

Multiple Choice

To establish the existence and ownership of a long-term investment in the common stock of a publiclytraded company, an auditor ordinarily performs a security count or:

A) Relies on the client's internal accounting controls if the auditor has reasonable assurance that the control activities are being applied as prescribed.
B) Confirms the number of shares owned that are held by an independent custodian.
C) Determines the market price per share at the balance sheet date from published quotations.
D) Confirms the number of shares owned with the issuing company.