Questions from Auditing and Assurance

Q: What are the major internal controls over owners' equity?

What are the major internal controls over owners' equity?

Q: Explain why it is common for auditors to send confirmation requests to

Explain why it is common for auditors to send confirmation requests to vendors with “zero balances” on the client’s accounts payable listing but uncommon to follow the same approach in verifying accou...

Q: How does the audit of owners' equity for a closely held corporation

How does the audit of owners' equity for a closely held corporation differ from that for a publicly held corporation? In what respects are there no significant differences?

Q: Describe the duties of a stock registrar and a transfer agent.

Describe the duties of a stock registrar and a transfer agent. How does the use of their services affect the client's internal controls?

Q: What kinds of information can be confirmed with a transfer agent?

What kinds of information can be confirmed with a transfer agent?

Q: Evaluate the following statement: "The most important audit procedure to

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 bee...

Q: Assuming that the auditor properly documents receiving report numbers as a part

Assuming that the auditor properly documents receiving report numbers as a part of the physical inventory observation procedures, explain how the proper cutoff of purchases, including tests for the po...

Q: If a transfer agent disburses dividends for a client, explain how

If a transfer agent disburses dividends for a client, explain how the audit of dividends declared and paid is affected. What audit procedures are necessary to verify dividends paid when a transfer age...

Q: What should be the major emphasis in auditing the retained earnings account

What should be the major emphasis in auditing the retained earnings account? Explain your answer.

Q: Explain the relationship between the audit of owners' equity and the calculations

Explain the relationship between the audit of owners' equity and the calculations of earnings per share. What are the main auditing considerations in verifying the earnings per share figure?