CPA · Question 64 · Area III: Performing Procedures
An auditor is testing the existence of a nonissuer's investments in securities. The securities are held by a custodian. Which of the following procedures provides the MOST reliable evidence?
Answer options:
Inquiry of management regarding the existence of the securities.
Examination of the broker's advice for the purchase of the securities.
Confirmation with the custodian.
Recalculation of dividend income.
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