Question: Evaluate the following statement: The most important audit procedure to verify dividends for the year is a comparison of a random sample of cancelled dividend

Evaluate the following statement: “The most important audit procedure to verify dividends for the year is a comparison of a random sample of cancelled cheques with a list that has been prepared by management as of the record date.”

Step by Step Solution

★★★★★

3.33 Rating (165 Votes )

There are 3 Steps involved in it

1 Expert Approved Answer

Step: 1 Unlock

Since it is important to verify that properly authorized dividends have been pa... View full answer

Question Has Been Solved by an Expert!

Get step-by-step solutions from verified subject matter experts

Step: 2 Unlock

Step: 3 Unlock

Document Format (1 attachment)

687-B-A-A-A-N (4443).docx

120 KBs Word File

Students Have Also Explored These Related Auditing Questions!

The following balance sheet has been prepared by the accountant for Limestone Company as of June 3, 2011, the date on which the company is to file a voluntary petition of bankruptcy: Additional...

The following balance sheet has been prepared by the accountant for Limestone Company as of June 3, 2013, the date on which the company is to file a voluntary petition of bankruptcy: LIMESTONE...

The following balance sheet has been prepared by the accountant for Limestone Company as of June 3, 2017, the date on which the company is to file a voluntary petition of bankruptcy: LIMESTONE...

Evaluate the following statement: "The most important audit procedure to verify dividends for the year is a comparison of a random sample of cancelled dividend checks with a dividend list that has...

Discuss the following two statements: 1- the corporate charter and the bylaws of a company are legal documents; therefore, they should not be examined by the auditors. If the auditor wants...

1. A set of characteristics that helps to define a seriousness about employees' attitudes about the control activities in a company is referred to as A. Management assertions. B. Control environment....

Multiple Choice Questions 1. The best evidence regarding year-end bank balances is documented in the a. Cutoff bank statement. b. Bank reconciliations. c. Interbank transfer schedule. d. Bank deposit...

I need to finish assignment Assignment 6 WPs 21-1, 21-2, 21-3, 21-5, 21-6, 21-17, 21-18, 21-19, 21-20, 21-21 Assignment 7 WPs 30-1, 30-2, 30-4, 30-5, 30-21, 30-22, 30-23, 30-24 Assignment 8 WPs 20-1,...

ACCT 612 FINAL EXAM SECTION 1: 2 POINTS EACH. PLEASE SELECT THE BEST ANSWER TO EACH OF THE FOLLOWING QUESTIONS. 1) Which of the following best describes the test data approach? A) Auditors process...

Laurel, Inc., has debt outstanding with a coupon rate of 5.8% and a yield to maturity of 6.8%. Its tax rate is 35%. What is Laurel's effective (after-tax) cost of debt? NOTE: Assume that the debt has...

What is the difference between raster and vector data? As a civil Engineer which data either raster or vector you will required for roads & accidents to display on maps.

Minimize list i (Click the icon to view the investment transactions.) SF15-1 (book/static) V Use the partial balance sheet below to show how to report the investment on North's balance sheet at...

Using the accounting equation to analyze business transactions The analysis of the first eight transactions of Advanced Accounting Service follows. Describe each transaction. ASSETS LIABILITIES +...

What is the appropriate date for the auditor's report?

Describe the difference between the corresponding figures and the comparative financial statements approach.

What is the difference between material and material and pervasive?

Changes in the Cash Account (Please use the appropriate letter for each of the numbered items below. Use ; I for increase, D for decrease or N for no change). Please type the number and the...

Peter Piper has applied for a mortgage of $ 1 4 0 , 0 0 0 . Interest is computed at 7 . 5 percent compounded semiannually. The mortg vill be paid off over 2 0 years. ( For all requirements, use a...

Suppose your grandmother deposited $3800 into an account on your 3rd birthday. If the account earns 8% interest compounded quarterly, find the account balance on your 18th birthday. Round your answer...