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:

Second Shift

The phenomenon where individuals, often women, work a day job and then return home to perform domestic chores and caregiving, effectively working a "second shift."

Divorced Parents

Individuals who have legally ended their marriage and are no longer living together as spouses, often involving arrangements for co-parenting if children are involved.

Cohabitation

The living arrangement in which an unmarried couple resides together in a long-term relationship that resembles a marriage.

Custody

The physical and legal responsibility of caring for children; assigned by a court for divorced or unmarried parents.