As Part of the Audit of Dividends,the Auditor Would Verify

question 62

Multiple Choice

As part of the audit of dividends,the auditor would verify whether the payment was made to the shareholders who owned the stock at the dividend record date.Which of the following audit tests assists with this objective?

• A)examining the minutes of board of directors' meetings for the amount of the dividend per share and the dividend date
• B)reviewing the permanent audit working paper file to determine if there are restrictions on the payment of dividends
• C)recomputing the amount of dividends declared by multiplying the dividend amount per share by the number of shares outstanding
• D)selecting a sample of recorded dividend payments and tracing the payee's name on the cancelled cheque to the dividend records

---

Definitions:

Job Enrichment

The process of making a job more rewarding, challenging, and interesting by adding more meaningful tasks to enhance employee satisfaction and performance.

Diffusion

The process by which an innovation is communicated through certain channels over time among the members of a social system.

Creativity

The ability to produce original and valuable ideas or solutions by thinking outside conventional boundaries or patterns.

Motivation

The processes that account for an individual's intensity, direction, and persistence of effort toward attaining a goal.