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22 Ianiya and Carlie have been assigned to the audit the financing activities for Buckaroo Enterprises, LLC, a provider of horse riding equipment throughout the
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Ianiya and Carlie have been assigned to the audit the financing activities for Buckaroo Enterprises, LLC, a provider of horse riding equipment throughout the continental United States. Carlie has never audited a client's financing activities before, and asks Janiya where they should start? Which of the following represents an appropriate response by Carlie to this question? I would recommend we start with auditing the associated interest expense accounts for the client's equity offerings. I would recommend we solicit written assurances from senior management. If we can obtain those, we can go ahead and issue an audit opinion on this area. I would recommend we start with testing a sample of dividend payments associated with the client's long-term bonds. I would recommend we review the minutes of board of directors meetings to check for appropriate authorizations of debt or equity transactionsStep by Step Solution
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