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Which of the following is likely the most effective audit procedure for the verification of the legal ownership of real property?

A. Examination of deeds and title guaranty policies on hand.
B. Examination of ownership documents registered and on file at a public hall of records.
C. Examination of corporate minutes and resolutions concerning the approval to acquire property, plant, and equipment.
D. Examination of correspondence with the corporate counsel concerning acquisitions.

1 Answer

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Final answer:

The examination of registered ownership documents at a public hall of records is the most effective procedure for verifying the legal ownership of real property, providing the most updated and authoritative source on the property's status.

Step-by-step explanation:

The most effective audit procedure for the verification of the legal ownership of real property is likely the examination of ownership documents registered and on file at a public hall of records. This method ensures that the auditor reviews the most updated and official records, which are publicly available and provide an authoritative source on matters of property ownership.

An examination of deeds and title guaranty policies on hand and corporate minutes and resolutions concerning the approval to acquire property might provide insight into the company's intentions and processes, but they are not as definitive as the records held at the hall of records. Examining correspondence with corporate counsel concerning acquisitions could also reveal legal concerns or confirmations related to acquisitions, but again, this is less authoritative than public records.

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