Question

Which of the following is not one of the auditors' primary objectives in an examination of investments in securities?

1) To determine whether securities are the property of the client.
2) To determine whether securities actually exist.
3) To determine whether all securities are in proper, secure, files at year-end.
4) To determine whether securities are properly classified on the balance sheet.

Answer 1

The auditors' primary objectives in an examination of investments in securities is to determine ownership, existence, and proper classification of securities.

Step-by-step explanation:

The auditors' primary objectives in an examination of investments in securities is to:

1. To determine whether securities are the property of the client.
2. To determine whether securities actually exist.
3. To determine whether securities are properly classified on the balance sheet.

Therefore, the correct answer is option 3) To determine whether all securities are in proper, secure files at year-end.