When a client company does not maintain its own share records, the auditor should obtain written confirmation from the share registrar concerning:
A)the number of shares subject to agreements to repurchase.
B)guarantees of preferred share liquidation value.
C)restrictions on the payment of dividends.
D)the number of shares issued and outstanding.

Question

Quizplus · Accepted Answer

When a company does not maintain its own share records, the auditor should obtain written confirmation from the share registrar concerning the number of shares issued and outstanding. This information is essential to confirm the accuracy of the company's financial statements and disclosures related to share capital. Therefore, option D is the correct choice. Options A, B, and C may also be relevant, but they are not directly related to the verification of share capital in the absence of share records.

When a Client Company Does Not Maintain Its Own Share