For those clients with treasury stock,which of the following would the auditor be least likely to perform?
A)Obtaining confirmations from the stock transfer agent.
B)Tracing transactions through the cash receipts journal.
C)Tracing transactions through the cash disbursements journal.
D)Reviewing a copy of the client's articles of incorporation.

Question

Quizplus · Accepted Answer

Reviewing a copy of the client's articles of incorporation is least likely to be performed by an auditor in relation to treasury stock. The articles of incorporation generally establish the corporation's existence and contain information about the company's structure and governance, not specific transactions or the handling of treasury stock. Auditors focus on confirming the existence and proper accounting of treasury stock transactions, which involves tracing transactions through financial records and obtaining external confirmations, rather than reviewing foundational corporate documents.

For Those Clients with Treasury Stock,which of the Following Would