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$47.$ Following are typical questions that might appear on an internal control questionnaire for investments in marketable securities$.$

Is custody of investment securities maintained by an employee who does not maintain the detailed records of the securities$?$

Are securities registered in the company name?

Are investment activities reviewed by an investment committee of the board of directon?

a$.$ Describe the purpose of each of the above controls.

b$.$ Describe the manner in which each of the above procedures might be tested.

c$.$ Assuming that the operating effectiveness of each of the above procedures is found to be inadequate, describe how the auditors might alter their substantive procedures to compersate for the increased level of control risk.

You are the senior auditor$-$in$-$charge of the July $31,20$X$0,$ audit of Reliable Auto Parts lac. Your newly hired staff assistant reports to you that she is unable to complete the four$-$colum proof of cash for the month of April $20$X$0,$ which you instructed her to do as part of the coersideration of internal control over cash.

Your assistant shows you the working paper that she has prepared. Your review of your assistant's work reveals that the dollar amounts of all the items in her working paper are cor$-$