Question: An auditor notes that retained earnings includes an amount appropriated in accordance with a loan covenant. Which procedures would the auditor use to audit retained

An auditor notes that retained earnings includes an amount appropriated in accordance with a loan covenant. Which procedures would the auditor use to audit retained earnings? I. Trace dividend declarations to appropriate authorization by management. Il. Analyze the retained earnings account since the last audit. IlI. Use a standard bank confirmation to confirm the amount appropriated. A. 1, II, and III. B. I and III, only. C. Il and III, only. D. Il only

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