The transfer agent confirmed to the auditor that the company had 2 500 000 shares outstanding at December 31,2019.To have assurance over the accuracy of the dividend payable,the auditor would multiply 2 500 000 by the

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To calculate the dividend payable, the auditor would multiply the number of shares outstanding by the dividend per share declared, which is the amount of dividend that the company plans to distribute to its shareholders. The dividend per share paid during the year or the dividend per share as per the articles of incorporation, even if it was not declared during the year, would not be relevant in calculating the dividend payable at the year-end. The average dividend for the industry is also not relevant in this case, as it does not reflect the company's specific dividend policy.

The Transfer Agent Confirmed to the Auditor That the Company