The auditor is concerned with establishing that dividends are paid to stockholders of the entity owning stock as of the:

Question

Quizplus · Accepted Answer

The record date is the date on which the ownership of stock is determined for the purpose of receiving dividends. Therefore, the auditor is concerned with establishing that dividends are paid to stockholders of the entity owning stock as of the record date. The issue date represents the date on which the stock is initially sold to the public, the declaration date represents the date on which the board of directors declares the dividend, and the payment date represents the date on which the dividend is actually paid to stockholders. While these other dates may be relevant to the overall financial reporting process, they are not directly related to ensuring that dividends are paid to the appropriate owners of stock.

The Auditor Is Concerned with Establishing That Dividends Are Paid