QUESTION 58

1. Which of the following are financial misstatement risks within the acquisition and repayment cycle and associated accounts.

   	a.	Misstatement of dividends declared on balance sheet or payment to the wrong people which could result in a liability.
   	b.	Illegal payments of cash and issue of shares.
   	c.	Misstatement of owners equity and earnings per share.
   	d.	All of the above

2 points

QUESTION 59

1. An auditor has been assigned the objective to determine if there were any shares issued or retired during the year, or if certificates are missing. What specific misstatement would this audit objective uncover?

   	a.	Unrecorded or unauthorized transactions, or transactions not handled in a legal manner.
   	b.	The issuance or retirement of stock without proper authorization, improper valuation, or incorrect dividend calculations.
   	c.	Incorrect earnings per share computation.
   	d.	All of the above