Which of the Following Statements Is Correct Regarding the Audit

question 54

Multiple Choice

Which of the following statements is correct regarding the audit of dividends?

• A) The emphasis is on the ending balance in the dividends account.
• B) When auditors verify that the dividends are paid to stockholders that exist, they are concerned with the completeness objective.
• C) If the client uses a transfer agent to disburse dividends, the total can be traced to a cash disbursement entry to the agent and also confirmed.
• D) All of the above are correct statements.

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Definitions:

Characteristic Pattern

A consistent and observable behavior or feature repeated in a similar way across different contexts or situations.

Personality

The blend of features that constitute a person's individual identity.

Reality Principle

The reality principle is a psychoanalytic concept that describes the ego's role in mediating between the desires of the id and the constraints of the external world.

Neurological Sense

The perception and processing of sensory information by the nervous system.