$11.$ Discuss the four aspects of the audit of cost accounting with which the auditor is

most concerned.

$12.$ Describe at least five auditing procedures which an auditor can perform which

could test for the possibility of non$-$existent employees being paid by an audit client.

$13.$ List six accounts in the capital acquisition and repayment cycle commonly found

on balance sheets of corporations. What characteristics do these accounts have in

common that distinguish them from other accounts?

$14.$ Discuss the four key controls over notes payable.

$15.$ When a company maintains its own records of stock transactions and capital

stock outstanding, its internal controls must be adequate to accomplish three

objectives. List them below.

$16.$ Match six of the terms $($a$-$i$)$ used in the capital acquisitions and repayment cycle

with the descriptions provided below $(1-6).$

a$.$ capital acquisition and repayment cycle h$.$ schedule of notes payable

b$.$ capital stock certificate book and accrued interest

c$.$ closely held corporation i$.$ stock maintenance agent

d$.$ independent registrar

e$.$ notes payable

f$.$ publicly held corporation

g$.$ stock transfer agent

$1.$ an outside person engaged by a corporation to make sure that its stock

is issued in accordance with capital stock provisions in the corporate charter and authorizations by the board of directors.

$2.$ the normal starting point for the audit of notes payable; includes

detailed information of all transactions related to notes payable that took place

during the year.

$3.$ a record of the issuance and repurchase of capital stock for the life of

the corporation.

$4.$ an outside person engaged by a corporation to maintain the stockholder

records, and often to disburse cash dividends.

$5.$ an entity that is required to engage an independent registrar.

$6.$ the cycle that concerns the acquisition of capital resources through

interest$-$bearing debt and owners' equity and repayment of the capital

$17.$ State the four most important audit objectives for capital stock and describe how

the auditor typically verifies each of the four objectives.