When a client company does not maintain its own share records, the auditor should obtain written confirmation from the transfer agent and registrar concerning:
A) the number of shares subject to agreements to repurchase.
B) guarantees of preferred share liquidation value.
C) restrictions on the payment of dividends.
D) the number of shares issued and outstanding.

Question

Quizplus · Accepted Answer

When a client company does not maintain its own share records, the auditor should obtain written confirmation from the transfer agent and registrar concerning the number of shares issued and outstanding. This is important information for the auditor to properly value the company's equity and ensure accuracy in financial reporting. The other options, while important, are not directly related to the number of shares issued and outstanding.

When a Client Company Does Not Maintain Its Own Share