Ensure Exercising Due Diligence in Customer Accounts Opening and Supervision

A

The given statement pertains to the opening and supervision of customer accounts and ensuring that the firm is exercising due diligence. The procedures must be formalized in writing and in compliance with the rules and regulations of the appropriate regulatory authority. The objective is to ensure that daily customer positions and option exercises are within the limits established by the appropriate exchange and that commissions generated by customer trades are properly calculated and posted to the general ledger.

Given this information, we can eliminate options B and C because swaps and bonds are not relevant to the statement's context. Therefore, the answer is either option A or D.

Option A suggests that the statement is one of the primary audit objectives of stock and options. This option is the most appropriate answer because the statement is related to customer accounts' opening and supervision in stock and options trading. It also highlights the importance of complying with the regulatory authority's rules and regulations and ensuring that commissions generated by customer trades are correctly calculated and posted to the general ledger.

Therefore, the correct answer is option A, i.e., "This is one of the primary audit objectives of stock and options."