Consider the Statements Presented Below

question 60

Short Answer

Consider the statements presented below.Choose those that would happen as part of a financial statement audit, then put them in the proper order based on the steps presented in the text.
a.Check access to sensitive information and other assets.
b.Consult GAO standards.
c.Convert financial statements to XBRL.
d.Evaluate the organization's control environment.
e.Interview the CFO as a corroborative witness.
f.Make recommendations for improving business processes.
g.Prepare an unmodified report.
h.Review management's resumes.
i.Translate financial statements from German to English.
j.Verify the existence of inventory and plant assets.

---

Definitions:

Ex-Dividend Date

The date when the right to the dividend leaves the stock. This date was established by stockbrokers to avoid confusion and is two business days prior to the holder-of-record date. If the stock sale is made prior to the ex-dividend date, the dividend is paid to the buyer. If the stock is bought on or after the ex-dividend date, the dividend is paid to the seller.

Dividend Irrelevance Theory

A theory proposed by Franco Modigliani and Merton Miller that suggests that a company's dividend policy has no effect on its market value or investors' required yield.

Residual Distribution Policy

A policy where dividends are based on the earnings left over after all project and operational investments have been made.

Stock Price

The cost of purchasing a share of a company's stock, which can fluctuate based on market conditions, company performance, and investor sentiment.