Which of the Following Is the Most Effective Audit Procedure

question 63

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 deposits 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)Re-computing selected extensions and footings of dividend schedules and comparing totals to the general ledger.

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Definitions:

Sexual Maturity

Sexual maturity is the stage in an organism's life cycle when it has reached the ability to reproduce, characterized by the development of secondary sexual characteristics and reproductive organs.

Puberty

The phase in human development during which a child matures sexually and becomes capable of reproduction.

Adolescence

The period of maturation involving both mental and physical changes, occurring from puberty to the age of legal responsibility.

Menarche

The commencement of menstruation in females, indicating the start of reproductive ability.