An audit plan for the examination of the retained earnings account should include a step that requires verification of the (choose two steps)a. Market value used to charge retained earnings to account for a 2-for-1 stock split.b. Approval of the adjustment to the beginning balance as a result of a write-down of account receivables.c. Authorization for both cash and stock dividends declared and paid.d. Gain or loss resulting from disposition of treasury shares.
An audit plan for the examination of the retained earnings account should include a step that requires verification of the (choose two steps)a. Market value used to charge retained earnings to account for a 2-for-1 stock split.b. Approval of the adjustment to the beginning balance as a result of a write-down of account receivables.c. Authorization for both cash and stock dividends declared and paid.d. Gain or loss resulting from disposition of treasury shares.
Auditing: A Risk Based-Approach (MindTap Course List)
11th Edition
ISBN:9781337619455
Author:Karla M Johnstone, Audrey A. Gramling, Larry E. Rittenberg
Publisher:Karla M Johnstone, Audrey A. Gramling, Larry E. Rittenberg
Chapter13: Auditing Debt, Equity, And Long-term Liabilities Requiring Management Estimates
Section: Chapter Questions
Problem 32CYBK
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An audit plan for the examination of the
a. Market value used to charge retained earnings to account for a 2-for-1 stock split.
b. Approval of the adjustment to the beginning balance as a result of a write-down of account receivables.
c. Authorization for both cash and stock dividends declared and paid.
d. Gain or loss resulting from disposition of treasury shares.
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