When the Auditor Examines the Board of Directors' Minutes for Dividends

question 14

Multiple Choice

When the auditor examines the board of directors' minutes for dividends declared,the auditor should be alert to the possibility of unrecorded dividends declared,particularly shortly before the balance sheet date.Which audit assertion does this address?

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

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Definitions:

Conscious Effort

Deliberate and intentional attempt to think about or do something.

Automatic Reaction

An involuntary and immediate response to a particular stimulus without conscious thought.

Gust Of Wind

A gust of wind is a brief, strong rush of wind that suddenly increases in speed before diminishing.

Spinal Cord

The main pathway for information connecting the brain and peripheral nervous system.