Question

A client has a large and active investment portfolio that is kept in a bank safe deposit box. If the auditors are unable tocount securities at the balance-sheet date, they most likely willA. Request the bank to conrm 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 conrm with the bank whether securities were added or removed sincethe 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 subsequentdate.

Answer 1

The correct answer is

D. Request the client to have the bank seal the safe deposit box until the auditors can count the securities at a subsequentdate.