You Are Engaged in the Audit of Bordon Corporation,whose Records

question 20

Essay

You are engaged in the audit of Bordon Corporation,whose records have not previously been audited by your firm.The company has an independent transfer agent,as well as a registrar for its capital stock.The transfer agent maintains the record of stockholders,while the registrar checks that there is no overissue of stock.Both the transfer agent and registrar are required to validate stock certificates. One of the seniors on the audit proposes that confirmations be obtained from both the transfer agent and registrar regarding the outstanding stock balance at the balance sheet date.If the confirmations agree with the books,then he proposes that no additional work is to be performed on the capital stock account. REQUIRED: Do you agree or disagree that this will be sufficient? If yes,give the justification for your position.If no,state specifically all additional steps you would take and why you would take them.

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Definitions:

Adjusting Expectations

entails modifying one's beliefs or hopes about future events based on new information or outcomes.

Lived Experience

Refers to the personal knowledge and insights gained through individual life events and situations.

Critical Reflection

The process of deeply analyzing and questioning one’s beliefs, actions, and outcomes to learn from experience and foster personal or professional growth.

Practical Reasoning

The process of figuring out what to do in a given situation, or determining the best course of action based on rational thinking.