The Amount of Time Spent Verifying Owners' Equity Is Frequently

Multiple Choice

The amount of time spent verifying owners' equity is frequently minimal for private companies because:

A) the few owners all have access to the books so the auditor spends more time on accounts like liabilities, which affect outsiders.
B) there are few if any transactions during the year for the owners' equity accounts, except for earnings and dividends.
C) these companies are so small that it is not necessary to audit the capital section.
D) there is no public interest in these companies.