If the Auditor Wants to Obtain Evidence as to Whether

question 66

Multiple Choice

If the auditor wants to obtain evidence as to whether the dividend payment was made to the stockholders who owned the stock as of the dividend record date,which of the following would the auditor do?

• A)Recalculate the dividends per share.
• B)Examine the minutes of the board of directors' meetings for authorization.
• C)Trace the payee's name on the canceled check to the dividend records.
• D)Determine that dividend restrictions are adequately disclosed in the financial statements.

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Definitions:

Assignment

The transfer of rights, duties, or property from one party to another, often used in the context of contracts and property law.

Developer

An individual or organization that undertakes the process of planning, designing, and constructing buildings or land into a new or altered use.

Subdivision

The process of dividing a piece of land into smaller lots, typically for the purpose of development or sale.

Property Value

The monetary worth of a piece of real estate, which can be affected by factors such as location, condition, and market trends.