An audit plan for the examination of the retained earnings account should include a step that requires verification of the:

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The audit plan for the examination of the retained earnings account should include a step that requires verification of the authorization for both cash and stock dividends. This is because dividends impact the retained earnings account, which is an important component of a company's financial statements. Verification of the authorization for dividends ensures that they were properly declared and distributed in accordance with company policies and accounting standards. Market value used to charge retained earnings to account for a two-for-one stock split, approval of the adjustment to the beginning balance as a result of a write-down of an account receivable, and gain or loss resulting from disposition of treasury shares are all important aspects to consider during an audit, but they are not directly related to the verification of the retained earnings account.

An Audit Plan for the Examination of the Retained Earnings