When an entity uses a trust company as custodian of its marketable securities, the possibility of concealing
Question:
a. Trust company has no direct contact with the entity employees responsible for maintaining investment accounting records.
b. Securities are registered in the name of the trust company rather than the entity itself.
c. Interest and dividend checks are mailed directly to an entity employee who is authorized to sell securities.
d. The trust company places the securities in a bank safe deposit vault under the custodian’s exclusive control.
Dividend
A dividend is a distribution of a portion of company’s earnings, decided and managed by the company’s board of directors, and paid to the shareholders. Dividends are given on the shares. It is a token reward paid to the shareholders for their...
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Related Book For
Auditing and Assurance Services
ISBN: 978-0077862343
6th edition
Authors: Timothy Louwers, Robert Ramsay, David Sinason, Jerry Straws
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