As part of the audit of dividends,the auditor would verify whether the payment was made to the shareholders who owned the stock at the dividend record date.Which of the following audit tests assists with this objective?

Question

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Selecting a sample of recorded dividend payments and tracing the payee's name on the cancelled cheque to the dividend records helps to verify if the payment was made to shareholders who owned the stock at the dividend record date. This test ensures that the dividends were paid to eligible shareholders and helps to detect any errors in the process of dividend payment. Options A, B, and C are not directly relevant to verifying whether the payment was made to eligible shareholders.

As Part of the Audit of Dividends,the Auditor Would Verify