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NEW QUESTION: 1
Reviewing counterparties for creditworthiness and obtaining master trade agreements and credit approval for counterparties before entering into a repurchase or reverse repurchase agreement Obtaining collateral from the counterparty Marking to market all collateral daily; if a deficit (within established guidelines) exists, additional collateral may be obtained from the counterparty Reconciling the repurchase and reverse repurchase subsidiary ledgers to the stock record and general ledger daily. Out-of-balances are recorded as suspense items and researched immediately These are actually:
A. Control and monitoring activities related to purchase and reverse purchase agreement
B. Auditors should be aware of the following control and monitoring activities typicallyassociated with securities lending
C. None of these
D. Review activities where broker-dealer -dealers finance proprietary or customer activitythrough collateralized bank
Answer: A