Select the necessary words from the list of possibilities to complete the following statements. Statements Answer 1. The count of securities on hand by the auditors should be made concurrently with the count of other A 2 is a bank statement covering a few days after year end that is used by the auditors to verify the client's bank reconciliation. 3. The standard form to confirm cash accounts also requests the financial institution to confirm any to the bank 4. Collection of accounts receivable through the mail should be initially listed by personnel in the Verification of dividend revenue can be achieved by independent computation using 5. published by investment advisory services. Select the necessary words from the list of possibilities to complete the following statements. 1 An of customers' accounts receivable should be prepared at regular intervals for use by the credit department in carrying out its collection program. Loans by a company to its officers, directors, major stockholders, or affiliates require particular attention because these are not the results of arm's length bargaining by independent parties. 2. 3. Receivables written off are often turned over to a 4 A is a shipping document that is prepared for goods shipped by a common carrier. 5. A confirmation request asks the debtor to respond in all cases. Select the necessary words from the list of possibilities to complete the following statements. 1. Inventories stored in public warehouses should be with the custodians. 2. The auditors observe the inventory taking primarily to obtain evidence of the assertion and to a certain extent the client's rights to the inventories. 3. Even though the auditors are unable to obtain evidence regarding the fairness of beginning inventories, they may still issue an unmodified opinion on the client's 4. A decreasing rate of inventory turnover suggests the possibility of inventory 5. Tracing for several days before and after year-end to recorded purchases is designed to test the proper cutoff of purchase transactions. 3