Which of the Following Is an Important Consideration of an Auditor

question 2

Multiple Choice

Which of the following is an important consideration of an auditor when examining the stockholders' equity section of an entity's balance sheet?

• A)Changes in the capital stock account are verified by an independent stock transfer agent.
• B)Stock dividends and/or stock splits during the year under audit were approved by the stockholders.
• C)Stock dividends are capitalized at par or stated value on the dividend declaration date.
• D)Entries in the capital stock account can be traced to a resolution in the minutes of the board of directors' meetings.

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Definitions:

Piece-Rate Pay

A compensation system where employees are paid based on the quantity of units they produce or complete.

Decision-Making Responsibility

The obligation to make choices that affect an organization's performance and to bear the consequences of those choices.

More Tasks

A directive to undertake additional responsibilities or assignments.

Job Enrichment

The process of making a job more rewarding, challenging, and interesting by adding higher level responsibilities or tasks.