When a Client Company Does Not Maintain Its Own Share

question 42

Multiple Choice

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

Environment

All external conditions and influences that affect the life and development of an organism or population.

Informal Groups

Social groups that form naturally within an organization, workplace, or community based on common interests or friendships, without formal structure.

Formal Group

A type of group in an organization formed by its structure, with designated tasks and roles.

Collegial Inclusiveness

The practice of ensuring participation, respect, and equal opportunities for all members within a professional community or organization.