Which of the Following Is Not True About Auditing Stockholders

question 45

Multiple Choice

Which of the following is not true about auditing stockholders' equity transactions?

• A)The auditor usually uses a substantive approach.
• B)The number of equity transactions with outside parties is usually small.
• C)The dollar amount is usually immaterial.
• D)An approach using only tests of details is most commonly used to audit equity accounts.

---

Definitions:

Skeletal Muscle

A type of muscle tissue that is attached to bones and is responsible for voluntary movements of the body.

Marginal Product

The increase in output resulting from a one-unit increase in the quantity of a particular input, holding other inputs constant.

Isoquants

Isoquants are curves that represent combinations of various inputs that produce the same level of output, used in production theory to analyze input choices.

Input Prices

The cost of resources used in the production of goods and services.