In auditing debits and credits to retained earnings, OTHER than net income and dividends, the auditors first concern is:

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Auditors' first concern when auditing debits and credits to retained earnings, other than net income and dividends, is to determine whether the transactions should have been included in retained earnings. This involves evaluating whether the transactions meet the criteria for inclusion in retained earnings, such as whether they relate to changes in equity that are not the result of capital contributions or distributions. Once the auditors have determined that the transactions should be included in retained earnings, they will then assess whether the transactions have been accurately recorded, classified correctly in the footnotes, and existed as of the balance sheet date.

In Auditing Debits and Credits to Retained Earnings, OTHER Than