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:

Recession

A period of temporary economic decline during which trade and industrial activities are reduced, generally identified by a fall in GDP in two successive quarters.

Home Prices

the amount of money required to purchase homes in a particular area, influenced by various factors including location, demand, and economic conditions.

Foreclosures

The legal process through which a lender takes control of a property from the borrower due to failure to make the required mortgage payments.

December 2007

Marked the beginning of the global financial crisis that led to significant economic downturns worldwide.