An Auditor Usually Tests the Reasonableness of Dividend Income from Investments

Multiple Choice

An auditor usually tests the reasonableness of dividend income from investments in stock of public companies by computing the amounts that should have been received by referring to:

A) comparisons of current-year dividend income with the reported income from prior years.
B) stock indentures published by corporate transfer agents.
C) stock ledgers maintained by independent registrars.
D) annual audited financial statements issued by the investee companies.