In Establishing the Existence and Ownership of Long-Term Investments in the Form

Multiple Choice

In establishing the existence and ownership of long-term investments in the form of publicly-traded stock, an auditor most likely would inspect the securities or:

A) Correspond with the investee company to verify the number of shares owned.
B) Confirm the number of shares owned that are held by an independent custodian.
C) Apply analytical procedures to the dividend income and investments accounts.
D) Inspect the cash receipts journal for amounts that could represent the sale of securities.