Which Audit Procedure Is Most Closely Related to Management's Assertions

question 10

Multiple Choice

Which audit procedure is most closely related to management's assertions about the presentation of stockholders' equity?

• A)Determining whether restrictions have been imposed on retained earnings.
• B)Counting treasury stock certificates.
• C)Inspecting minutes of the board of directors to verify that cash dividends were declared.
• D)Establishing that treasury stock is valued at cost.

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