Jones was engaged to examine the financial statements of Gamma Corporation for the year ended June 30.

Question:

Jones was engaged to examine the of Gamma for the year ended June 30. Having completed an examination of the investment securities, which of the following is the best method of verifying the accuracy of recorded income?
a. Tracing recorded income to cash receipts records and validated deposit slips.
b. Performing analytical procedures and statistical sampling.
c. Comparing recorded dividends with amounts appearing on federal information Form 1099.
d. Comparing recorded dividends with a standard financial reporting service’s record of dividends.

Financial Statements
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