Auditors Can Test Whether Dividend Payments Have Been Made to Shareholders

question 18

True/False

Auditors can test whether dividend payments have been made to shareholders by selecting a sample of recorded dividend payments and agreeing payee information to the records produced by the stock transfer agent.

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Definitions:

Standard Normal Distribution

A normal distribution with a mean of 0 and a standard deviation of 1, used in z-score calculations to determine probabilities.

Normal Distribution

A statistical distribution which is evenly spread around the mean, indicating that occurrences close to the mean are more common than those further away.

Frequency Distributions

Showcases how often each different value in a set of data occurs.

Normal Distributions

A distribution that resembles the shape of a bell, symmetrically centered around the average, indicating that values close to the mean are more commonly observed than those further away from the mean.