Which of the Following Audit Procedures Would Not Likely Be

question 42

Multiple Choice

Which of the following audit procedures would not likely be performed for audits of shareholders' equity?

• A)Read board of directors' minutes for authorization of equity transactions.
• B)Confirm outstanding common and preferred stock with stock registrar.
• C)Compare valuation of stock to published market prices.
• D)Obtain management representation about number of shares issued and outstanding.

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Definitions:

Liability

Financial obligations or debts that a company owes to others.

Discount Period

The Discount Period refers to a specific timeframe during which a buyer can pay less than the full invoice amount as an incentive for early payment.

Credit Terms

Conditions under which credit is extended by a seller to a buyer, including payment period, discount for early payment, and late penalty.

Accounts Payable

Liabilities or amounts owed to creditors for goods and services received but not yet paid for.