An Audit Plan for the Examination of the Retained Earnings

Multiple Choice

An audit plan for the examination of the retained earnings account should include a step that requires verification of the:

A) market value used to charge retained earnings to account for a 2-for-1 stock split.
B) approval of the adjustment to the beginning balance as a result of a write-down of account receivables.
C) authorization for both cash and stock dividends.
D) dividends received from investments.