Chap15 Flashcards
The auditors wouldn’t be most likely to find unrecorded long-term liabilities by analyzing
Interest payments
Which of the following is least likely to be an audit objective for debt?
Determine that the client has rights to receive proceeds relating to the redemption of debt
A likely reason that consideration of clients compliance with debt provisions is important to an audit is that violation of such debt provisions may affect the total recorded:
Current liabilities
A transfer agent and a registrar are most likely to provide the auditor with evidence on
Shares issued and outstanding
The audit procedure of confirmation is least appropriate with respect to
Holders of common stock
An auditor is most likely to trace treasury stock purchase transactions to The
Numbered stock certificates on hand
In the continuing audit of a manufacturing company of medium-size which of the following areas would you expect to require the least amount of audit time
Owners equity
The auditors can best verify a clients bond sinking fund transactions and year end balance by
Confirmation with the bond trustee
The auditors program for the examination of long-term debt should include steps that require the
Examination of copies of debt agreements
All corporate capital stock transactions should ultimately be traced to the
Minutes of the board of directors
Which of the following is most likely to be an audit objective in the audit of owners equity?
Determine that the presentation and disclosure of owners equity is appropriate
In an audit of a sole proprietorship a common difficulty is lack of
Segregation of personal net worth and business capital aka commingling
An auditor usually obtains evidence of stockholders equity transactions by reviewing the entity’s
Minutes of Board of Directors meetings
