Which of the Following Is the Most Effective Audit Procedure

question 14

Multiple Choice

Which of the following is the most effective audit procedure for verification of dividends earned on investments in marketable equity securities?

• A) Tracing deposit of dividend cheques to the cash receipts book.
• B) Comparing the amounts received with dividends received in the preceding year.
• C) Reconciling amounts received with published dividend records.
• D) Recomputing selected extensions and footings of dividend schedules and comparing totals to the general ledger.

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Definitions:

Labor Market

The marketplace where workers offer their services for wages and employers look for workers to hire.

Wages

Remuneration provided to workers for their work, often determined on a per hour, per day, or per piece completed basis.

Rental Price of Capital

The cost of using capital goods for a specific period, reflecting the opportunity cost of utilizing these assets in production.

Mycenaean Fortified Palace

Large-scale structures from the Mycenaean civilization (c. 1600–1100 BCE) that served as administrative, economic, and military centers, often surrounded by massive walls.