Jones was engaged to examine the financial statements of Gamma Corporation for the year ended June 30. Having completed an examination of the investment securities, which of the following is the best method of verifying the accuracy of recorded dividend income?

Question

Quizplus · Accepted Answer

Comparing recorded dividends with a standard financial reporting service's record of dividends is the best method because it provides an independent and reliable source of information about the dividends declared by the investments held by the company. This method ensures the accuracy of the dividend income recorded by comparing it against an authoritative external source.

Jones Was Engaged to Examine the Financial Statements of Gamma