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Dennis has been tasked by his supervisor to audit the financing activities of Margram Enterprises, LLC; a large, national retailer of wooden and plastic furniture.

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Dennis has been tasked by his supervisor to audit the financing activities of Margram Enterprises, LLC; a large, national retailer of wooden and plastic furniture. As this will be Dennis' first audit of the client's equity accounts, he asks his supervisor if there are any areas he should be cognizant of as he completes this part of the audit? Which of the following represents his supervisors' most appropriate response to this question? The best thing to do is to approach this part of the audit in the exact same way as auditing bonds and long-term debt. Pay particular attention to interest expense accounts. Pay close attention to any instances of stock buybacks by the client, and consider checking for appropriate authorizations for these transactions. Pay attention to how much stock the client has issued relative to the prior year's audit, and make sure this number can be reconciled to asset acquisitions and retirements. None of these answer choices are correct

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