Multiple Choice
Which of the following is the most important consideration of an auditor when examining the stockholders' equity section of a client's balance sheet?
A) Changes in the capital stock account are verified by an independent stock transfer agent.
B) Stock dividends and/or stock splits during the year under audit were approved by the stockholders.
C) Stock dividends are capitalized at par or stated value on the dividend declaration date.
D) Entries in the capital stock account can be traced to a resolution in the minutes of the board of directors' meetings.
Correct Answer:
Verified
Correct Answer:
Verified
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