Which of the Following Is the Most Important Audit Consideration

question 64

Multiple Choice

Which of the following is the most important audit consideration when examining the stockholders' equity section of a client's balance sheet?

• A)Changes in the capital stock account are verified by an independent stock transfer agent.
• B)Stock dividends and stock splits during the year under audit were approved by the stockholders.
• C)Stock dividends are capitalized at par or stated value on the dividend declaration date.
• D)Entries in the capital stock account can be traced to resolutions in the minutes of meetings of the board of directors.

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Definitions:

Gynecology

A branch of medicine focusing on the health of the female reproductive systems and the breasts.

Medical Abbreviation

A shortened form of a word or phrase used in medical documentation and communication.

Medical Abbreviation

Shortened forms of words or phrases used in the medical field for ease of communication.

Cerebrovascular Accident

Cerebrovascular Accident, commonly known as a stroke, occurs when the blood supply to part of the brain is interrupted or reduced, causing brain cells to die.