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 cheques with a dividend list that has been prepared by management as of the dividend record date ...

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

Evaluate the following statement: The most important audit procedure to verify dividends for the year is a

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 cheques with a list that has been prepared by management as of the record date.”
Dividend
A dividend is a distribution of a portion of company’s earnings, decided and managed by the company’s board of directors, and paid to the shareholders. Dividends are given on the shares. It is a token reward paid to the shareholders for their...