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NEW QUESTION: 1
When a company's stock record books are maintained by an outside registrar or transfer agent, the auditor
should obtain confirmation from the registrar or transfer agent concerning the:
A. Proper authorization of stock rights and warrants.
B. Expected proceeds from stock subscriptions receivable.
C. Number of shares issued and outstanding.
D. Amount of dividends paid to related parties.
Answer: C
Explanation:
Explanation/Reference:
Explanation:
Choice "C" is correct. If a client uses a stock transfer agent, confirmations should be used to provide
evidence of shares authorized, issued, and outstanding, as well as to provide evidence of the individual
transactions.
Choice "A" is incorrect. It is the auditor's responsibility to identify, examine, and evaluate the disclosure of
related party transactions. The stock transfer agent would not necessarily know which parties are related
to the client.
Choice "B" is incorrect. The auditor should recalculate, or should review management's calculations of,
stock subscriptions receivable. Confirmation from the stock transfer agent would not be necessary to
review this information.
Choice "D" is incorrect. Proper authorization of stock rights and warrants would best be verified by
reviewing the minutes of Board of Director meetings. Confirmation from the stock transfer agent would not
be necessary to review this information.

NEW QUESTION: 2
Common causes of variances are a result of all of the following except:
A. Variances that are predictable
B. Variances that are random
C. Variances that are special
D. Variances that are always present
Answer: C

NEW QUESTION: 3
A customer reports that a networked printer is not printing documents. The technician successfully pings the printer's IP address. Which of the following could be the problem? (Select TWO).
A. The spooler is not functioning.
B. The network cable is unplugged.
C. The printer is low on toner.
D. The gateway address on the printer is incorrect.
E. The printer is out of paper.
Answer: A,E