Which of the Following Is the Most Important Consideration of an Auditor

question 9

Multiple Choice

Which of the following is the most important consideration of an auditor when examining the stockholders' equity section of a client's balance sheet?

• A)Changes in the capital stock account are verified by an independent stock transfer agent.
• B)Stock dividends and/or stock splits during the year under audit were approved by the stockholders.
• C)Stock dividends are capitalized at par or stated value on the dividend declaration date.
• D)Entries in the capital stock account can be traced to a resolution in the minutes of the board of directors' meetings.

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Definitions:

Ivan Pavlov

A Russian physiologist known for his work in classical conditioning, particularly his experiments with dogs that led to the discovery of the conditioned reflex.

Jean Piaget

A Swiss psychologist best known for his pioneering work in child development and his theory of cognitive development.

William James

A pioneering American psychologist and philosopher known for his work in pragmatism and functionalism, as well as for being a co-founder of the field of psychology in the United States.

Biopsychosocial Approach

An integrated approach that incorporates biological, psychological, and social-cultural levels of analysis in understanding health and illness.