View the step-by-step solution to:

You are engaged in the first audit of Microdent, Inc. The corporation has both a stock transfer agent and an independent registrar for its capital...

You are engaged in the first audit of Microdent, Inc. The corporation has both a stock transfer agent and an independent registrar for its capital stock. The tranfer agent maintains the record of stockholders, and the registrar determines that there is no overissue of stock. Signatures of both are required to validate stock certificates.
It has been proposed that confirmations be obtained from both the transfer agent and the registrar as to the stock outstanding at the balance sheet date. If such confirmations agree with the accounting records, no additional work is to be performed as to capital stock.
If you agree that obtaining confirmations as suggested would be sufficient in this case, give the justification for your position. If you do not agree, state specifically all additional steps you would take and explain your reasons for taking them.

This question was asked on Mar 28, 2010.

Recently Asked Questions

Why Join Course Hero?

Course Hero has all the homework and study help you need to succeed! We’ve got course-specific notes, study guides, and practice tests along with expert tutors and customizable flashcards—available anywhere, anytime.

-

Educational Resources
  • -

    Study Documents

    Find the best study resources around, tagged to your specific courses. Share your own to gain free Course Hero access or to earn money with our Marketplace.

    Browse Documents
  • -

    Question & Answers

    Get one-on-one homework help from our expert tutors—available online 24/7. Ask your own questions or browse existing Q&A threads. Satisfaction guaranteed!

    Ask a Question
  • -

    Flashcards

    Browse existing sets or create your own using our digital flashcard system. A simple yet effective studying tool to help you earn the grade that you want!

    Browse Flashcards