Which of the following audit procedures would not likely be performed for audits of shareholders' equity?
A)Read board of directors' minutes for authorization of equity transactions.
B)Confirm outstanding common and preferred stock with stock registrar.
C)Compare valuation of stock to published market prices.
D)Obtain management representation about number of shares issued and outstanding.

Question

Quizplus · Accepted Answer

Comparing the valuation of stock to published market prices is not a necessary audit procedure for shareholders' equity. The valuation may be based on other factors such as internal estimates and projections, or may not have a direct correlation to the market price. The other procedures listed are all common and necessary for auditing shareholders' equity.

Which of the Following Audit Procedures Would Not Likely Be