Usually dividends are audited:
A) on a 100% basis.
B) using block sampling.
C) using variables sampling.
D) using attributes sampling.

Question

Quizplus · Accepted Answer

Dividends are typically audited on a 100% basis to ensure accuracy and completeness. This means that auditors will review every dividend transaction to verify that it was properly authorized, calculated, recorded, and disbursed. While other sampling methods could be used, such as variables sampling or attributes sampling, these methods may not provide enough assurance for such a critical area of the financial statements. Therefore, auditors typically opt for a 100% audit approach to dividends.

Usually Dividends Are Audited