Audit of Shareholder's Equity

______represents the claim that the corporation’s shareholders have to the company’s net assets

• Owner's Equity

• Shareholder's Equity

• Partner's Equity

• None of the choices

__________represents money that shareholders invest in a business.

• Treasury stock

• Preferred stock

• Additional paid-in capital

• Paid-in capital

________is the excess of what shareholders pay to buy stock over the stock’s par value.

• Paid-in capital

• Stockholders’ equity

• Additional paid-in capital

• Treasury stock

Shows a company’s total net income or loss from the first day it’s in business to the date on the balance sheet you’re auditing.

• Retained Earnings

• Net Income or Net Loss

• Income Statement

• Other Comprehensive Income

Which of the following assertions is least likely considered by the auditor in an audit of shareholder's equity?

• Completeness

• Existence

• Rights and Obligations

• Presentation and disclosure

Because of the limited number of transactions involved in shareholder's equity items, the auditor normally assess control risk at the maximum level and performs

• Detailed test of balances

• Detailed test of transactions

• Detailed analytical procedures

• Detailed test of controls

Change in capital stock accounts should normally be approved by:

• Board of Directors

• Audit Committee

• Stockholders

• President

Footing the shares outstanding in the stock register and comparing the total shares outstanding in the general ledger stock account addresses the audit objective of

• Completeness

• Validity

• Ownership

• Valuation