When a client company does not maintain its own capital stock records, the auditors should obtain written

Question:

When a client company does not maintain its own capital stock records, the auditors should obtain written confirmation from the transfer agent and registrar concerning

a. Restrictions on the payment of dividends.

b. The number of shares issued and outstanding.

c. Guarantees of preferred stock liquidation value.

d. The number of shares subject to agreements to repurchase.

Liquidation
Liquidation in finance and economics is the process of bringing a business to an end and distributing its assets to claimants. It is an event that usually occurs when a company is insolvent, meaning it cannot pay its obligations when they are due....