Which of the Following Is Not True About Auditing Stockholders

question 45

Multiple Choice

Which of the following is not true about auditing stockholders' equity transactions?

• A)The auditor usually uses a substantive approach.
• B)The number of equity transactions with outside parties is usually small.
• C)The dollar amount is usually immaterial.
• D)An approach using only tests of details is most commonly used to audit equity accounts.

---

Definitions:

Transfusion Therapy

The process of transferring blood or blood components from one person to another to replace lost components, such as red blood cells.

Plasma Products

Blood products derived from the liquid portion of blood (plasma) used in medical treatments, such as clotting factors.

Whole Blood

Blood with all its components (red blood cells, white blood cells, plasma, and platelets) intact.

Hemolytic Transfusion Reaction

An adverse response following a blood transfusion, where the recipient's immune system destroys the transfused red blood cells, leading to potentially severe complications.