Which of the following audit procedures would not likely be performed for audits of shareholders’ equity?a. Read board of directors’ minutes for authorization of equity transactions.b. Confirm outstanding common and preferred stock with stock registrar.c. Compare valuation of stock to published market prices.d. Obtain management representation about number of shares issued and outstanding.

Why are vice presidents and other executive managers who are privy to financial performance data considered insiders to a publicly traded company as defined by the Securities and Exchange Commission (SEC)?

Bright Star (Pty) Ltd is considering issuing corporate bonds and must have their financial statements audited as part of the process. You are required to: a) Describe the steps an auditor would take to give Bright Star (Pty) Ltds' prospective investors confidence that the financial statements are without significant inaccuracies. Focus on describing what processes will take place in the following steps: Initial Planning Risk Evaluation Collection of Audit Evidence Conducting Audit Procedures Evidence Assessment Audit Reporting b) Define 'reasonable assurance' in the context of an audit. c) In what ways does an auditor's assessment in Bright Star (Pty) Ltds' situation assist potential investors in reducing their investment risk?

Which of the following is true of the Audit Committee? O It is composed of a group of stockholders. O It includes both the internal auditors and the external auditors of a company. It is the group that conducts the audit of a company. Its main purpose is to report errors on the company's financial statements to the SEC. It is another term for the internal auditing department of a company.

Consider the following statements: I. For an audit of a non-public company a issue involving information in the “Management         Discussion and Analysis section of the company’s annual report would be addressed in an         Other Matter paragraph. II. The new PCAOB audit report includes a section involving Key Audit Matters. I is true;   II is true I is true;   II is false I is false;  II is true I is false;  II is false

The standard unqualified opinion based on the audit of a public company's financial statements includes a. A discussion of Key Audit Matters if KAMs are discovered. b. A reference to Key Audit Matters if no KAMs are discovered. c. A statement that the CPA firm is registered with the AICPA. d. An indication of how long the firm has served as the company's auditors. e. A Basis for Opinion section preceding the Opinion of Financial Statements section.

Sarbanes-Oxley Act of 2002 requires which of the following report to be prepared by the management of the company? Oa. A report evaluating the probability that the company will remain in business. Ob. A report assessing the market value of the company's current stock price. Oc. Areport identifying the competency of the company's board of directors. Od. Areport showing management's assessment of internal control.

Bright Star (Pty) Ltd is considering issuing corporate bonds and must have their financial statements audited as part of the process. You are required to: a) Describe the steps an auditor would take to give Bright Star (Pty) Ltds' prospective investors confidence that the financial statements are without significant inaccuracies. Focus on describing what processes will take place in the following steps: Initial Planning Risk Evaluation Collection of Audit Evidence Conducting Audit Procedures Evidence Assessment Audit Reporting b) Define 'reasonable assurance' in the context of an audit. c) In what ways does an auditor's assessment in Bright Star (Pty) Ltds' situation assist potential investors in reducing their investment risk?

An auditor's primary substantive procedures for investments typically include confirmation of securities or evidence of ownership that are held by the client or by a third party. Which of the following assertion(s) is(are) addressed by the audit procedure previously mentioned? *   A. I only     B. I and V only     C. II and V only     D. I and VII only

Which of the following statements related to dividends is incorrect? O Dividends must be paid in the period declared. O Before declaring a dividend, management must consider availability of funds to pay the dividend. O Distributions to owners must be in compliance with the state laws. O Dividends must be declared by the Board of Directors.