You were assigned to audit the bond investments of JIHUZ company. The company maintains the records and custody of its certificates, thus you have decided to conduct a count of securities to test the existence assertion. You have asked that a person from JIHUZ company should accompany you during the count. Why is this important?   To detect fraudulent securities So that the company representative may assist you during the count To acknowledge any variances during the inspection. -ry So that the inspection of securities will be conducted in an efficient manner

Auditing: A Risk Based-Approach to Conducting a Quality Audit
10th Edition
ISBN:9781305080577
Author:Karla M Johnstone, Audrey A. Gramling, Larry E. Rittenberg
Publisher:Karla M Johnstone, Audrey A. Gramling, Larry E. Rittenberg
Chapter10: Auditing Cash And Marketable Securities
Section: Chapter Questions
Problem 67RSCQ
icon
Related questions
Question

You were assigned to audit the bond investments of JIHUZ company. The company

maintains the records and custody of its certificates, thus you have decided to

conduct a count of securities to test the existence assertion. You have asked that a person from JIHUZ company should accompany you during the count. Why is this

important?

 

To detect fraudulent securities

So that the company representative may assist you during the count

To acknowledge any variances during the inspection. -ry

So that the inspection of securities will be conducted in an efficient manner

Expert Solution
steps

Step by step

Solved in 2 steps

Blurred answer
Knowledge Booster
Federal Law, Integrated, Performance and Other Audits
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.
Similar questions
Recommended textbooks for you
Auditing: A Risk Based-Approach to Conducting a Q…
Auditing: A Risk Based-Approach to Conducting a Q…
Accounting
ISBN:
9781305080577
Author:
Karla M Johnstone, Audrey A. Gramling, Larry E. Rittenberg
Publisher:
South-Western College Pub
Auditing: A Risk Based-Approach (MindTap Course L…
Auditing: A Risk Based-Approach (MindTap Course L…
Accounting
ISBN:
9781337619455
Author:
Karla M Johnstone, Audrey A. Gramling, Larry E. Rittenberg
Publisher:
Cengage Learning
Contemporary Auditing
Contemporary Auditing
Accounting
ISBN:
9781337650380
Author:
KNAPP
Publisher:
Cengage