Which of the Following Is Likely the Most Effective Audit

question 6

Multiple Choice

Which of the following is likely the most effective audit procedure for the verification of the legal ownership of real property?

• A)Examination of correspondence with the corporate counsel concerning acquisitions.
• B)Examination of ownership documents registered and on file at a public hall of records.
• C)Examination of corporate minutes and resolutions concerning the approval to acquire property, plant, and equipment.
• D)Examination of deeds and title guaranty policies on hand.

---

Definitions:

Capital upon Dissolution

The remaining assets available for distribution to the shareholders or partners after a firm's liabilities have been settled during dissolution.

Limited Liability

The legal principle where an individual's financial risk is restricted to a fixed amount, typically the value of their investment in a company, protecting personal assets from business debts and obligations.

Corporate Constitutional Rights

The legal rights and protections granted to corporations, treating them as entities that can exercise certain rights similar to individuals.

Corporate Citizenship

The commitment of a company to behave ethically and contribute to economic development while improving the quality of life of employees, communities, and society at large.