Which of the Following Is the Most Effective Audit Procedure

Multiple Choice

Which of the following is the most effective audit procedure for verification of dividends earned on investments in marketable equity securities?

A) Tracing deposit of dividend cheques to the cash receipts book.
B) Comparing the amounts received with dividends received in the preceding year.
C) Reconciling amounts received with published dividend records.
D) Recomputing selected extensions and footings of dividend schedules and comparing totals to the general ledger.