Auditors can test whether dividend payments have been made to shareholders by selecting a sample of recorded dividend payments and agreeing payee information to the records produced by the stock transfer agent.

Question

Quizplus · Accepted Answer

This statement is true as auditors can verify whether dividend payments have been made to shareholders by selecting a sample of recorded dividend payments and comparing them to the records produced by the stock transfer agent. This helps ensure that dividends have been correctly paid to the right individuals and in the correct amounts.

Auditors Can Test Whether Dividend Payments Have Been Made to Shareholders