An auditor usually obtains evidence of stockholders’ equity transactions by reviewing
the entity’s
(1) minutes of boards of directors meetings.
(2) transfer agent’s records.
(3) canceled stock certificates.
(4) treasury stock certificates book
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Explain the circumstances under which an auditor should performaudit tests primarily designed to uncover fraud in the payroll and personnel cycle. Listthree audit procedures that are primarily for the detection of fraud and state the type offraud the procedure is meant to uncover.
Independent auditing can best be described as(1) a branch of accounting.(2) a discipline that attests to the results of accounting and other functional operationsand data.(3) a professional activity that measures and communicates financial and business data.(4) a regulatory function that prevents the issuance of improper financial information.
Which of the following are not the rights of the auditors? a) The right to all information and explanations (from management) necessary for the proper conduct of the audit. b) The right to receive notice of all meetings of the directors and to attend those meetings. c) The right to speak at shareholders’ meetings on matters affecting the Management. d) The right to visit the branches of the client and right to access all accounting books and records. e) The right to examine and evaluate financial and information systems, recommending controls to ensure system reliability and data integrity f) The right to review data about material assets, net worth, liabilities, capital stock, surplus, income and expenditures Only d) , e) and f) All a) , b) , c) , d) and e) Only b) and c) Only b
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