Kumar Is the Internal Auditor of Tarragon Inc

question 37

Multiple Choice

Kumar is the internal auditor of Tarragon Inc.Kumar wants to put procedures in place to prevent misstatements in owners' equity and ensure proper record keeping.Kumar has suggested that management implement well-defined policies for preparing stock certificates and recording capital stock transactions.What else should Kumar recommend?

• A)independent internal verification of information in the records
• B)having all journal entries in the equity account reviewed by the controller
• C)performing a monthly reconciliation of shareholder's equity
• D)reconciling the dividend payments with the bank statement

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Definitions:

Bureaucratic Organisation

A type of organizational structure that operates under a fixed set of rules and procedures, often with a hierarchical system of administration.

Quantitative Approaches

Methods that focus on obtaining and analyzing numerical data for the purpose of making decisions or understanding patterns.

Computer Technology

The study and application of the design, construction, and use of computers and software for processing and managing information.

Managerial Problem Solving

The process by which managers identify, assess, and resolve issues impacting their organization's operations or objectives effectively.