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Author Question: The amount of time spent verifying owners' equity is frequently minimal for closely held corporations because (Read 68 times)

dhsndn

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on: Aug 21, 2022

Question 1

Common hybrid securities do not include which of the following?
◦ Treasury stock
◦ certain types of preferred stock
◦ convertible debt
◦ redeemable debt

Question 2

The amount of time spent verifying owners' equity is frequently minimal for closely held corporations because
◦ these companies are so small that it is not necessary to audit the capital section.
◦ the few owners all have access to the books so the auditor spends more time on accounts like liabilities, which affect outsiders.
◦ there are few if any transactions during the year for the capital stock accounts, except for earnings and dividends.
◦ there is no public interest in these companies.
Auditing and Assurance Services ¦ Arens, Elder, Beasley, Hogan ¦ 17th Edition
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Marked as best answer by dhsndn on Aug 21, 2022

BryanAultm

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Reply #1 on: Aug 21, 2022
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dhsndn

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Reply 2 on: Aug 21, 2022
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