Principles Of Auditing & Other Assurance Services
21st Edition
ISBN: 9781259916984
Author: WHITTINGTON, Ray, Pany, Kurt
Publisher: Mcgraw-hill Education,
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Chapter 15, Problem 32NOQ
To determine
Identify the appropriate answer related to the responsibility of the bank acting as a registrar of capital stock.
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In establishing the existence and ownership of an investment held by a corporationin the form of publicly traded stock, an auditor should inspect the securities or(1) obtain written representations from management confirming that the securitiesare properly classified as trading securities.(2) inspect the audited financial statements of the investee company.(3) confirm the number of shares owned that are held by an independent custodian.(4) determine that the investment is carried at the lower of cost or market.
Chapter 15 Solutions
Principles Of Auditing & Other Assurance Services
Ch. 15 - What does the trust indenture used by a...Ch. 15 - Long-term creditors often insist upon placing...Ch. 15 - Prob. 3RQCh. 15 - Prob. 4RQCh. 15 - Prob. 5RQCh. 15 - Prob. 6RQCh. 15 - Prob. 7RQCh. 15 - Prob. 8RQCh. 15 - Prob. 9RQCh. 15 - Prob. 10RQ
Ch. 15 - Mansfield Corporation has outstanding an issue of...Ch. 15 - Prob. 12RQCh. 15 - Prob. 13RQCh. 15 - What do you consider to be the most important...Ch. 15 - What is the primary responsibility of an...Ch. 15 - In the audit of a small corporation that issues...Ch. 15 - Prob. 17RQCh. 15 - Prob. 18RQCh. 15 - Prob. 19RQCh. 15 - Corporations sometimes issue their own capital...Ch. 15 - Prob. 21RQCh. 15 - Prob. 22RQCh. 15 - Prob. 23RQCh. 15 - Prob. 24RQCh. 15 - Prob. 25RQCh. 15 - Prob. 26RQCh. 15 - Prob. 27QRACh. 15 - Prob. 28QRACh. 15 - Prob. 29QRACh. 15 - You are retained by Columbia Corporation to audit...Ch. 15 - Prob. 31QRACh. 15 - Prob. 32AOQCh. 15 - Prob. 32BOQCh. 15 - Prob. 32COQCh. 15 - Prob. 32DOQCh. 15 - Prob. 32EOQCh. 15 - When a client uses paper stock certificates, an...Ch. 15 - Prob. 32GOQCh. 15 - The auditors can best verify a clients bond...Ch. 15 - Prob. 32IOQCh. 15 - All corporate capital stock transactions should...Ch. 15 - Prob. 32KOQCh. 15 - Prob. 32LOQCh. 15 - Prob. 32MOQCh. 15 - Prob. 32NOQCh. 15 - Prob. 32OOQCh. 15 - An auditor most likely would inspect loan...Ch. 15 - Prob. 32QOQCh. 15 - Match the following definitions (or partial...Ch. 15 - Prob. 34PCh. 15 - Prob. 35PCh. 15 - Prob. 36PCh. 15 - Prob. 37P
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Similar questions
- 18. Application for a bank loan and Issuance of securities by a corporation are part of situations as a common required in report by an independent public accountant concerning the fairness of a company's financial statementsSelect one:TrueFalsearrow_forwardWhich 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.arrow_forwardWhich of the following is the most important audit consideration when examining the stockholders’ equity section of a client’s balance sheet?a. Changes in the capital stock account are verified by an independent stock transfer agent.b. Stock dividends and stock splits during the year under audit were approved by the stockholders.c. Stock dividends are capitalized at par or stated value on the dividend declaration date.d. Entries in the capital stock account can be traced to resolutions in the minutes of meetings of the board of directors.arrow_forward
- All corporate capital stock transactions should ultimately be traced to thea. Minutes of the meetings of the board of directors.b. Cash receipts journal.c. Cash disbursements journal.d. Numbered stock certificates.arrow_forwardThe company holds bonds. The responsibility of the collection of interest andprincipal should be delegated to: choices: The internal auditorCashierTreasurerAccounting supervisorarrow_forwardIn performing tests concerning the granting of stock options, an auditor should(1) confirm the transaction with the Secretary of State in the state of incorporation.(2) verify the existence of option holders in the entity’s payroll records or stock ledgers.(3) determine that sufficient treasury stock is available to cover any new stock issued.(4) trace the authorization for the transaction to a vote of the board of directors.arrow_forward
- This is the independent federal agency protecting the interests of investors, regulating stock markets, and ensuring companies adhere to GAAP requirements. A. Financial Accounting Standards Board (FASB) B. generally accepted accounting principles (GAAP) C. Securities and Exchange Commission (SEC) D. conceptual frameworkarrow_forwardYou are a CPA who has been hired by DEF Company to assist with their incorporation process. Prepare a memo to the president of DEF explaining the different statuses of shares of stock: authorized shares, issued shares, outstanding shares, and treasury shares.arrow_forwardThe company holds bonds. The responsibility of the collection of interest and principal should be delegated to: Group of answer choices The internal auditor Cashier Treasurer Accounting supervisorarrow_forward
- Which of the following statement is correct about publicly traded companies? O A. Publicly traded companies can choose whether or not they wish to release periodic financial statements. O B. Statement of sources and uses of cash is one of the financial statements that all publicly traded companies have to file with the SEC. C. Publicly traded companies produce financial statements to increase intrinsic value of their firms. O D. Publicly traded companies must follow the rules and format set out in the Generally Accepted Accounting Principles (GAAP) when creating financial statements.arrow_forwardWhy the agent issues dividend checks to the individual shareholders and sends the corporation a list of the payments made?arrow_forwardWhich one of the following alternatives is correct in regarding to recording the transaction for receiving share applications and money from the public? a. The bank account must be debited with the amount received and a temporary "application and allotment account" is credited b. The bank account must be debited with the amount received and a temporary "application and allotment account" is credited with the value of the shares issued c. The bank account must be debited with the amount received and a temporary "application and allotment account" is credited to the extent of the shares offered to the public d. The bank account must be credited with the amount received and a temporary "application and allotment account" is debitedarrow_forward
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