An auditor usually obtains evidence of stockholders' equity transactions by reviewing the entity's:

Question

Quizplus · Accepted Answer

Minutes of the board of directors' meetings would provide evidence of stockholders' equity transactions, such as the declaration and payment of dividends, issuance of new shares, or repurchase of existing shares. Transfer agent's records may also be reviewed, but they mainly provide information on the ownership and transfer of shares, rather than the equity transactions themselves. Canceled stock certificates and treasury stock certificate book may provide some supporting evidence, but they are not as reliable or relevant as the minutes of the board of directors' meetings.

An Auditor Usually Obtains Evidence of Stockholders' Equity Transactions by Reviewing