Question

Delta Company has some investments that paid dividends during the year. The auditors have already signed...

Delta Company has some investments that paid dividends during the year. The auditors have already signed off on the treatment of the investments themselves, but what is the best methodology to validate the dividends received from Delta?

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Answer #1

The best methodology to validate the dividends received from Delta would be to:

"Comparing recorded dividends with a standard financial reporting service's record of dividends".

_____

Explanation:

The auditors can obtain evidence from the dividend record books maintained by an independent outside agency or investment advisory services. The auditors can use such records to verify the amount of dividend that should have been received by the company during the relevant year.

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