When the Auditor Examines the Minutes of Board of Directors

question 4

Multiple Choice

When the auditor examines the minutes of board of directors' meetings for the amount of the dividend per share and the dividend date,the auditor is checking for

• A)completeness.
• B)valuation.
• C)understandability.
• D)existence.

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Definitions:

Free Riders

Individuals who benefit from resources, goods, or services without paying for them, relying on others to bear the cost.

Private Firm

A business owned by private individuals or groups, not controlled by the government, and operated for profit.

Public Goods

Goods that are non-excludable and non-rivalrous, meaning they are accessible to all and one person's use does not diminish another's.

Nonexcludable

Describes a good or service for which it is not possible to prevent people who have not paid from consuming or using it, such as public parks or street lighting.