During an audit of an entity's stockholders' equity accounts,the auditor determines whether there are restrictions on retained earnings resulting from loans,agreements,or state law.This audit procedure most likely is intended to verify management's assertion

Question

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This audit procedure is aimed at verifying the correctness of the presentation and disclosure of information related to restrictions on retained earnings resulting from loans, agreements, or state law. Therefore, the answer is D. This assertion falls under the presentation and disclosure assertion, which relates to the adequacy and clarity of the financial statement disclosure.

During an Audit of an Entity's Stockholders' Equity Accounts,the Auditor