An auditor should trace corporate stock issuances and treasury stock transactions to the:

Question

Quizplus · Accepted Answer

Choice "D" is correct. The auditor should trace corporate stock issuances and treasury stock transactions to the minutes of the board of directors to make sure they were authorized. Choice "A" is incorrect. Numbered stock certificates for shares that are issued and outstanding would be in the hands of the stockholders. Choice "B" is incorrect. Information about stock issuances and treasury stock transactions would not be included in the articles of incorporation. Generally, only the shares authorized and their par value would be included therein. Choice "C" is incorrect. The transfer agent might confirm a transaction, but the auditor would not generally review the transfer agent's records.

An Auditor Should Trace Corporate Stock Issuances and Treasury Stock