The least effective method of identifying related parties for a public company would be a(n):
A) distribution of the engagement letter to all stockholders.
B) inquiry of management.
C) review of filings to the appropriate capital market.
D) examination of stockholders' listings to identify principal stockholders.

Question

Quizplus · Accepted Answer

Distributing the engagement letter to all stockholders is the least effective method because it relies on the assumption that stockholders will voluntarily disclose their related party relationships, which is less direct and reliable than inquiries of management, reviews of filings, or examinations of stockholder listings.

The Least Effective Method of Identifying Related Parties for a Public