The amount of time spent verifying owners' equity is frequently minimal for closely held corporations because
A) these companies are so small that it is not necessary to audit the capital section.
B) the few owners all have access to the books so the auditor spends more time on accounts like liabilities, which affect outsiders.
C) there are few if any transactions during the year for the capital stock accounts, except for earnings and dividends.
D) there is no public interest in these companies.

Question

Quizplus · Accepted Answer

In closely held corporations, there are typically few transactions involving owners' equity, such as changes in capital stock, making it less complex and time-consuming to verify.

The Amount of Time Spent Verifying Owners' Equity Is Frequently