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:

Financial Risks

The potential for losses due to fluctuations in financial markets, interest rates, foreign exchange rates, and credit risk.

Computer Software

Programs and other operating information used by a computer to perform specific tasks.

Globalization

The process of interaction and integration among people, companies, and governments worldwide, influenced by trade, investment, and technology.

Risk Profile

An evaluation of an individual's or organization's willingness and capacity to take risks, as well as the potential loss that could result from those risks.