Pilbara Wilderness Ltd is a public company that does not maintain its own shares books. How will the auditor most likely establish the number of shares outstanding for testing purposes?
A) inquiry of management
B) discussions with the shares trustee
C) confirmation with the transfer agent
D) examination of proceeds from current shares issuance

Question

Quizplus · Accepted Answer

The auditor will most likely establish the number of shares outstanding by confirming with the transfer agent, as the transfer agent is responsible for maintaining the company's stockholder records, including the issuance and transfer of shares. This provides a reliable and independent source of information for the auditor.

Pilbara Wilderness Ltd Is a Public Company That Does Not