Following are errors, frauds, or other circumstances that an auditor might encounter as a result of applying audit tests to capital stock as of December 31, the balance sheet date:

a. Shareholders' equity accounts are not accurate.

b. Stock dividends were issued during the year.

c. Treasury stock was purchased in December.

d. Dividends were declared and paid before the end of the year.

e. The client's common stock is traded actively on a national stock exchange.

Required:

For each of the above, indicate: (1) a specific substantive test or tests that might address the error, fraud, or circumstance and (2) the financial statement assertion addressed by each test.