Which of the following is the most important consideration of an auditor when examining the stockholders' equity

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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. Entries in the capital stock account can be traced to a resolution in the minutes of the board of directors' meetings.

c. Cash dividends during the year under audit are approved by the stockholders.

d. Stock dividends are capitalized at par or stated value on the dividend declaration date.

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Auditing An Assertions Approach

ISBN: 9780471134213

7th Edition

Authors: G. William Glezen, Donald H. Taylor

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Question Posted: May 08, 2024 01:29 AM

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Which of the following is the most important consideration of an auditor when examining the stockholders' equity

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