When a Client Company Does Not Maintain Its Own Share

question 78

Multiple Choice

When a client company does not maintain its own share records, the auditor should obtain written confirmation from the transfer agent and registrar concerning:

• A) the number of shares subject to agreements to repurchase.
• B) guarantees of preferred share liquidation value.
• C) restrictions on the payment of dividends.
• D) the number of shares issued and outstanding.

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Definitions:

Bona Fide Occupational Qualifications

Employment qualifications deemed necessary to the normal operation of a particular business or job, where discrimination based on certain characteristics like gender or religion may be allowed.

EEOC

Equal Employment Opportunity Commission, a federal agency enforcing laws against workplace discrimination.

Discrimination

Unfair or prejudicial treatment of individuals based on characteristics such as race, gender, age, or sexual orientation.

Norris-LaGuardia Act

A 1932 U.S. federal law that limited the power of federal courts to issue injunctions in non-violent labor disputes, thereby promoting fair labor practices.