In establishing the existence and ownership of a long-term investment in stock of a publicly traded company, an auditor should inspect the securities or

Finance

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In establishing the existence and ownership of a long-term investment in stock of a publicly traded company, an auditor should inspect the securities or

A. Correspond with the investee company to verify the number of shares owned.

B. Inspect the audited financial statements of the investee company.

C. Confirm the number of shares owned that are held by an independent custodian.

D. Determine that the investment is carried at the lower-of-cost-or-market.

Answer: Confirm the number of shares owned that are held by an independent custodian.

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